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






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






3. What rate is used on the balance sheet?






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






5. What is the trading in volume for FX?






6. ____________ - foreign currency/rate = USD






7. What does it mean to hedge?






8. All other currency trading with USD accounts for ____ of FX volume






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






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






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






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






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






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






15. How far in advance do we hedge?






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






17. What is local currency?

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18. We do not speculate on Foreign Exchange - 10-K says it is to reduce the impact of...






19. What dictates minimum and maximum hedge percentages?






20. When is hedge rate published?






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






22. The difference in interest rate is referred to as...






23. EUR-USD currency pair accounts for about ____ of all FX volume






24. What are non-monetary accounts?






25. The currency ticker for the Sweden Kroner is?






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






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






28. 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






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






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






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






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






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






34. What are some of the reason not hedge at all or partially hedge in a few countries?






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






36. In a stock-USD relationship - when arrow is going up means that stock is becoming more ______ against dollar






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






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






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






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






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






42. What is reporting currency?






43. What instruments do we use to hedge?






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






45. 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...






46. 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?






47. What is the ticker symbol for Brazilian Real?






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






49. A forward happens in...






50. If 1 pizza = 15 USD then ____ = 1/15 pizza