Test your basic knowledge |

AP Foreign Exchange

Subjects : AP, forex, industries
Instructions:
  • Answer 16 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Domestic residents' purchase of foreign assets minus foreigners' purchase of domestic assets






2. The rate at which one country's currency trades for another






3. Domestic residents buy foreign stocks and bonds - supplying loanable funds to a foreign firm






4. Rate at which the g/s of one country trade for the g/s of another






5. Domestic residents actively manage the foreign investment






6. When countries buy/sell currency to attempt to control ER






7. An increase in the value of a currency as measured by the amount of foreign currency it can buy






8. All determined by S/D of that foreign money






9. When the dollar buys little foreign currency (depreciating)






10. When the dollar will buy a lot of foreign currency (appreciating)






11. The notion that a good should sell for the same price in all markets






12. Theory of exchange rates where a unit of any currency should be able to buy the same quantity of goods in all countries






13. Record of a country's transactions in g - s - and assets with the rest of the world - also country's sources (supply)






14. When a gov artificially fixes the ER (poor/small countries)






15. Decrease in the value of currency as measured by the amount of foreign currency it can buy






16. 1) changes in tastes - 2) relative income changes - 3) relative price changes - 4) relative interest rates - 5) expectations