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. What are other strategies for managing forex risk?






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






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






4. What is the first characteristic of lead strategy?






5. What is the law of one price?






6. What are some strategies for managing forex risk?






7. What are the three ways of insuring against a Forex risk?






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






9. What are some characteristics of swaps?






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






11. How can translation exposure be described?






12. According to economic theories of exchage rate determination?






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






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






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






16. What is a forward rate?






17. What is the fourth characteristic of transaction exposure?






18. How do you establish central control?






19. What is the first issue with EFSF?






20. What is the second characteristic of lead strategy?






21. What is economic exposure?






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






23. What is the third characteristic of transaction exposure?






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






25. What is the first characteristic of lag strategy?






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






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






28. What are the three different types of foreign exchange rate risks?






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






30. What are the important trading centers?






31. What holds true to Purchase Power Parity Theory?






32. What is the nature of the forex market?






33. What is free convertible currency?






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






35. What is the nominal exchange rate?






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






37. What is the second characteristic of transaction exposure?






38. Marekts are open...






39. What is arbitrage?






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






41. The euro faces risks fo recapitalization?






42. Most Transaction inovolve...






43. What are some factors that influence exchange rates?






44. What are the purposes of fiscal policies?






45. What is non convertible currency?






46. What is a spot rate?






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






48. What is the first characteristic of transaction exposure ?






49. What is the fourth thing that determines the forex rates?






50. What is a currency swamp?