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 implications does understanding foreign exchange rates have on managers?






2. What are the purposes of fiscal policies?






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






4. What is free convertible currency?






5. What is the nature of the forex market?






6. What are other strategies for managing forex risk?






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






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






9. What is the fourth characteristic of transaction exposure?






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






11. What are the two ways to quote currency?






12. What is arbitrage?






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






14. Defaulting on debt has a __________ that intertwines all countries in Europe.






15. What is the law of one price?






16. What are the types of Exchange Rate Fluctuations?






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






18. What is non convertible currency?






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






20. What is economic exposure?






21. What causes big mac prices to vary?






22. What is the second issue with EFSF?






23. The euro faces risks fo recapitalization?






24. What is externally convertible currency






25. What are some strategies for managing forex risk?






26. What are some characteristics of swaps?






27. What is the third characteristic of transaction exposure?






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






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






30. What holds true to Purchase Power Parity Theory?






31. How do you establish central control?






32. What is the first characteristic of lead strategy?






33. What is the first characteristic of transaction exposure ?






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






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






36. According to economic theories of exchage rate determination?






37. What is a spot rate?






38. What are some factors that influence exchange rates?






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






40. What is the nominal exchange rate?






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






42. What is the second characteristic of transaction exposure?






43. Marekts are open...






44. Because of the recessionary environment euro banks have failed to do what?

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






46. What is the first issue with EFSF?






47. What is the second characteristic of lead strategy?






48. How can translation exposure be described?






49. What is the characteristic of translation expose?






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