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 roels of the U.S. dollar outside the U.S.?






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






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






4. What are the types of Exchange Rate Fluctuations?






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






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






7. What is the real exchange rate?






8. Greece has not defaulted because it has not been able to fully implement its...






9. What is economic exposure?






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






11. What is free convertible currency?






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






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






14. What do monetary policies do?






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






16. What holds true to Purchase Power Parity Theory?






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






18. What are the characteristics of economic exposure?






19. What is externally convertible currency






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






21. What is the second characteristic of transaction exposure?






22. What is the first characteristic of transaction exposure ?






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






24. Marekts are open...






25. When do countries use the foreign exchange market?






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






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






28. How do you establish central control?






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






30. What is the second characteristic of lead strategy?






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






32. What causes big mac prices to vary?






33. When do countries use foreign exchange market?






34. What is a spot rate?






35. What is the nominal exchange rate?






36. What is the second characteristic of lag strategy?






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






38. What is the law of one price?






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






40. What are other strategies for managing forex risk?






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






42. What is the third characteristic of transaction exposure?






43. Most Transaction inovolve...






44. What is non convertible currency?






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






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






47. What are some characteristics of swaps?






48. According to economic theories of exchage rate determination?






49. What are the purposes of fiscal policies?






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