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 difference in interest rate is referred to as...






2. What currencies use Direct method of quoting?






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






4. What is Functional Currency?






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






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






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






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






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






10. A forward happens in...






11. How far in advance do we hedge?






12. What is reporting currency?






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






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






15. 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






16. What is local currency?

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


17. What is cash flow used for?






18. Give an example of one way to hedge a price increase in gas prices...






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






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






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






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






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






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






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






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






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






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






29. Australian currency code is...






30. How does treasury accomplish its purpose?






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






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






33. What instruments do we use to hedge?






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






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






36. 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






37. 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






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






39. 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...






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






41. What is the purpose of hedging?






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






43. Forward points is equal to...






44. What are non-monetary accounts?






45. What is Revaluation?

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


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






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






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






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






50. The ticker symbol for the Chinese Yuan