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






2. Domestic residents actively manage the foreign investment






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






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






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






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






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






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






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






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






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






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






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






14. Domestic residents' purchase of foreign assets minus foreigners' purchase of domestic assets






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






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