Test your basic knowledge |

Foreign Exchange Essentials

Instructions:
  • Answer 50 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. The current market price for any currency pair is referred to as ?






2. The currency ticker for the Sweden Kroner is?






3. Australian currency code is...






4. GBP-USD account for ____ of trading FX volume






5. How many currencies use Direct method of quoting?






6. When is hedge rate published?






7. What are the exceptions to the ticker naming convention?






8. __________ is used for translation of foreign currency B/S to reporting currency






9. Functional currency of an entity is determined by Treasury Accounting based on ______ requirements






10. Treasury ensures that companies have ____________ to meet its obligations






11. What is reporting currency?






12. The rules for adding or subtracting forward points depend on whether it is quoted...






13. The ______________ for a currency normally uses the first two digits to identify the country - and the last digit to identify the currency






14. What is Revaluation?

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


15. Forward points multiply the exchange rate by the...






16. In a EUR-USD relationship - when arrow is going up means Euro is strengthening and Dollar...






17. Give some examples of countries where its hard to hedge?






18. Where are revaluations done?






19. ____________ booked a hedge rate is trued up to the EHR each month during the quarter






20. US Treasuries is the second highest trading volume accounting for...






21. If you are an European planning a trip to America - which rate do you want? 1.40 or 1.60?






22. The ticker symbol for the Chinese Yuan






23. In a EUR-USD relationship - when arrow is going down - means Euro weakens and US Dollar...






24. The timing of when we execute hedges drastically impacts the ____________ we achieve






25. If 1 Share = 10 USD and 1 CASE = 30 USD - then 1 share =?






26. What are the four major FX accounting guidances?






27. In a GBP-USD relationship - if pound is strengthening it means that you can get _____ US Dollars for one pound






28. What would happen if the US interest rate was bigger than Mexico?






29. If you are an American planning a trip to Europe - which exchange rate would you rather have to convert your US Dollars to Euro? 1.40 or 1.60?






30. What rate is used on the balance sheet?






31. The offset of revaluation is recorded to...






32. If you execute an FX trade to _______________ using the current market price - the trade will typically settle in two business days






33. What instruments do we use to hedge?






34. How is the price of the forward contract determined?






35. What is cash flow used for?






36. Hedge rate is constant throughout quarter while _______________ changes throughout quarter






37. In a USD-JPY relationship - when the line in a graph is upward slope it means the yen is weakening and dollar is strenghtening because exchange rate...






38. Whether the quote was indirect or direct - they are all stored as ______ in Oracle






39. When looking at a currency chart - you need to know if the currency is quoted Directly or Indirectly to be able to describe...






40. How is the hedge rate variance calculated?






41. How do you read EUR-USD = 1.40






42. Treasury is responsible for banking requirements - funding for the business and managing...






43. ____________ is used for translation of foreign currency P&L to Reporting currency?






44. A downward slope that represents stock-USD relationship means that stock price is losing ______ - so you are losing money






45. What is local currency?

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


46. The Foreign Exchange market is the __________ market in the world






47. How far in advance do we hedge?






48. What is the ticker symbol for Brazilian Real?






49. A ____________________ is an exchange of two currencies at a fixed rate for any date other than spot delivery






50. What is the trading in volume for FX?