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 is the first characteristic of lead strategy?






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






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






4. How can translation exposure be described?






5. What causes big mac prices to vary?






6. What is a forward rate?






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






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


9. What are some strategies for managing forex risk?






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






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






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






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






14. How can transaction exposure be described?






15. What are the types of Exchange Rate Fluctuations?






16. What are some characteristics of swaps?






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






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






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






20. When do countries use foreign exchange market?






21. What is the nature of the forex market?






22. What is the characteristic of translation expose?






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






24. What is the first issue with EFSF?






25. What is arbitrage?






26. What is the first characteristic of transaction exposure ?






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






28. Marekts are open...






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






30. What are the purposes of fiscal policies?






31. What is a currency swamp?






32. What is non convertible currency?






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






34. What is the second characteristic of lead strategy?






35. What are some factors that influence exchange rates?






36. Most Transaction inovolve...






37. What is the law of one price?






38. What is the second characteristic of transaction exposure?






39. What is externally convertible currency






40. What is the fourth characteristic of transaction exposure?






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






42. What is the second characteristic of lag strategy?






43. What is the second issue with EFSF?






44. What are other strategies for managing forex risk?






45. What do monetary policies do?






46. What is the third characteristic of transaction exposure?






47. What is the third thing that determines the forex rates?






48. When do countries use the foreign exchange market?






49. What is free convertible currency?






50. What are the two ways to quote currency?