SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
AP Foreign Exchange
Start Test
Study First
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. An increase in the value of a currency as measured by the amount of foreign currency it can buy
Balance of payment
Purchasing power parity
Appreciation (strengthening)
Depreciation (weakening)
2. When the dollar will buy a lot of foreign currency (appreciating)
Strong dollar
Law of one price
Free Floating ER
Real ER
3. Domestic residents buy foreign stocks and bonds - supplying loanable funds to a foreign firm
Real ER
Foreign direct investment
Foreign portfolio investment
Balance of payment
4. Decrease in the value of currency as measured by the amount of foreign currency it can buy
Balance of payment
Foreign portfolio investment
Depreciation (weakening)
Managed (dirty) ER
5. The notion that a good should sell for the same price in all markets
Nominal ER
Free Floating ER
Law of one price
Determinants of exchange rates
6. Theory of exchange rates where a unit of any currency should be able to buy the same quantity of goods in all countries
Appreciation (strengthening)
Real ER
Purchasing power parity
Managed (dirty) ER
7. Rate at which the g/s of one country trade for the g/s of another
Balance of payment
Real ER
Appreciation (strengthening)
Law of one price
8. All determined by S/D of that foreign money
Real ER
Free Floating ER
Law of one price
Nominal ER
9. Domestic residents' purchase of foreign assets minus foreigners' purchase of domestic assets
Net capital outflow
Purchasing power parity
Foreign portfolio investment
Real ER
10. When a gov artificially fixes the ER (poor/small countries)
Fixed ER
Foreign direct investment
Determinants of exchange rates
Purchasing power parity
11. Record of a country's transactions in g - s - and assets with the rest of the world - also country's sources (supply)
Foreign direct investment
Strong dollar
Foreign portfolio investment
Balance of payment
12. When the dollar buys little foreign currency (depreciating)
Appreciation (strengthening)
Purchasing power parity
Weak dollar
Balance of payment
13. When countries buy/sell currency to attempt to control ER
Foreign direct investment
Determinants of exchange rates
Managed (dirty) ER
Weak dollar
14. 1) changes in tastes - 2) relative income changes - 3) relative price changes - 4) relative interest rates - 5) expectations
Balance of payment
Law of one price
Determinants of exchange rates
Weak dollar
15. Domestic residents actively manage the foreign investment
Nominal ER
Fixed ER
Foreign direct investment
Balance of payment
16. The rate at which one country's currency trades for another
Nominal ER
Fixed ER
Weak dollar
Foreign portfolio investment