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






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






4. 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...






5. What currencies use Direct method of quoting?






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






7. What is Functional Currency?






8. What are the four major FX accounting guidances?






9. 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






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






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






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






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






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






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






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






17. How many currencies use Direct method of quoting?






18. ____________ should be denominated in the currency they will either be paid or received in...






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






20. The ticker symbol for the Chinese Yuan






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






22. What rate is used on the balance sheet?






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






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






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






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






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






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






29. 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






30. What are non-monetary accounts?






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






32. What is reporting currency?






33. ____________ - foreign currency/rate = USD






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






35. How do you read EUR-USD = 1.40






36. What is cash flow used for?






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






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






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






40. 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?






41. How far in advance do we hedge?






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






43. What is the purpose of hedging?






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






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






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






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






48. Australian currency code is...






49. A forward happens in...






50. When is hedge rate published?