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 ticker symbol for the Chinese Yuan






2. Australian currency code is...






3. How does treasury accomplish its purpose?






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






5. Hedging instrument used in Fair Value Hedge program is...






6. What are the four major FX accounting guidances?






7. USD-JPY account for ____ of trading FX volume






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






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






10. One of the objectives of the hedge rate is to __________ that is used for pricing - planning - and accounting thus maximizing the efficiency of our hedge program






11. What rate is used to book daily transactions?






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






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






14. What dictates minimum and maximum hedge percentages?






15. Treasury's role is to identify risk - control to prevent erosion of...






16. What is cash flow used for?






17. Treasury is responsible for managing companies funds and determining the firms'...






18. What is Revaluation?

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


19. What rate is used on the P&L?






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






21. In a stock-USD relationship - when arrow is going down means that stock is becoming ____ valuable against dollar






22. B/S rate is used for revaluation of foreign currency transaction to...






23. Hedging instrument used in cash flow program is...






24. ____________ - foreign currency/rate = USD






25. What are monetary accounts?






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






27. What are non-monetary accounts?






28. The currency ticker for the Sweden Kroner is?






29. Where are revaluations done?






30. An ___________ expresses the value of one currency relative to another






31. In a downward slope that represents USD-JPY relationship a _____________ means that if you bough Japanese Yen at point A you made money at point B






32. If 1 case = 30 USD and 1 pizza = 15 USD - then What is 1 case = ?






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






34. What is the ticker symbol for Brazilian Real?






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






36. What is local currency?

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


37. What instruments do we use to hedge?






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






39. A forward happens in...






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






41. If the Mexico rate is 5.25%/year and the US is 0.25%/year - What is the rate that would be used to calculate the forward rate?






42. What is Fair Value hedge program used for?






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






44. Forward points is equal to...






45. Hedge Rate is _______________ that will be achieved on a specific quarter's cash flow






46. In a GBP-USD relationship - when the line in a graph is upward slope it means the __________ overtime because the exchange rate is getting bigger






47. How far in advance do we hedge?






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






49. With direct quoting _______ of the first item is quoted for a specific price in terms of the second item.






50. A Spot happens in...