Test your basic knowledge |

Foreign Exchange Market

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. Bailout Fund of EFSF - What is this shiz nitz?






2. What is the second characteristic of lag strategy?






3. What is the second thing that determines the Forex rates?






4. What is the first issue with EFSF?






5. What is the purpose of not concentrating assets in countries?






6. What is the third role of the U.S. dollar outside the U.S.?






7. What do monetary policies do?






8. Marekts are open...






9. What is the second role of the U.S. dollar outside the U.S. ?






10. What is free convertible currency?






11. What is the fourth roles of the U.S. dollar outside the U.S.?






12. According to economic theories of exchage rate determination?






13. What is the first characteristic of lead strategy?






14. How can transaction exposure be described?






15. Burger economics!!! Why do we use it?






16. What are some strategies for managing forex risk?






17. What is the law of one price?






18. When do countries use the foreign exchange market?






19. What is the second issue with EFSF?






20. What is the third characteristic of transaction exposure?






21. What is a spot rate?






22. No single theory can explain explain the causes the value of currencies to change. True or False?






23. What are two methods of reducing translation and transaction exposure?






24. Because many banks (2/3) are below the capital adequacy ratio of 9% many can not recapitalize on their own as a result






25. What are the two ways to reduce economic exposure?






26. When do countries use foreign exchange market?






27. What are three factors that impact a country's future exchange rate movements?






28. Currently margins require more cash reserves - What is the best method of doing this **** in the Euro Zone?






29. What is the nominal exchange rate?






30. What is the bandwagon effect when looking at form investor psychology ?






31. What are the first two things that determine Forex rates?






32. What are the characteristics of economic exposure?






33. In the long run empirical testing has of the PPP Theory has proven to be accurate in the long run. True or False






34. What is the fifth thing that determines the forex rates?






35. What is arbitrage?






36. What implications does understanding foreign exchange rates have on managers?






37. How do you establish central control?






38. How do you insure or hedge against a Forex risk?






39. What is the first roels of the U.S. dollar outside the U.S.?






40. What are the purposes of fiscal policies?






41. What is the fourth characteristic of transaction exposure?






42. What is capital fight when looking at it form investor psychology?






43. What causes big mac prices to vary?






44. What is economic exposure?






45. What is non convertible currency?






46. It is important to stay __________ with your current events






47. How and What is the purpose of distributing assets?






48. The euro faces risks fo recapitalization?






49. What is externally convertible currency






50. What is the nature of the forex market?