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. What is the ticker symbol for Brazilian Real?






2. A Spot happens in...






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






4. What is Fair Value hedge program used for?






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






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






7. How do you read EUR-USD = 1.40






8. What instruments do we use to hedge?






9. Where are revaluations done?






10. What is currency Translation?

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11. What is Functional Currency?






12. In general EUR-USD is involved in roughly ___ of all FX volume






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






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






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






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






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






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






19. A downward slope that represents AUD-USD relationship means that if you bought Australian dollars at point A - you have _____ money at point B






20. What rate is used on the balance sheet?






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






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






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






24. The currency ticker for the Sweden Kroner is?






25. 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






26. Forward points is equal to...






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






28. What is Revaluation?

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






30. Effective Hedge Rate is ________________ of all outstanding FX contracts for the quarter being hedged






31. When is hedge rate published?






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






33. What is the trading in volume for FX?






34. Australian currency code is...






35. What rate is used to book daily transactions?






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






37. The ticker symbol for the Chinese Yuan






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






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






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






41. 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?






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






43. Revaluation can be hedged - while ___________ cannot be hedged






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






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






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






47. What are monetary accounts?






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






49. 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...






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