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 non convertible currency?






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






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






4. What holds true to Purchase Power Parity Theory?






5. What are the purposes of fiscal policies?






6. What is the second characteristic of lead strategy?






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






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






9. What causes big mac prices to vary?






10. What is the nominal exchange rate?






11. What is externally convertible currency






12. What is the first issue with EFSF?






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






14. What is the second issue with EFSF?






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






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






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






18. What is a currency swamp?






19. When do countries use the foreign exchange market?






20. The euro faces risks fo recapitalization?






21. What is free convertible currency?






22. What do monetary policies do?






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






24. What is the first characteristic of lag strategy?






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






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


27. What are some factors that influence exchange rates?






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






29. What is the law of one price?






30. What is the first characteristic of lead strategy?






31. What is a forward rate?






32. What is the characteristic of translation expose?






33. What is the nature of the forex market?






34. How can translation exposure be described?






35. What is the second characteristic of lag strategy?






36. According to economic theories of exchage rate determination?






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






38. What is the first characteristic of transaction exposure ?






39. What are the types of Exchange Rate Fluctuations?






40. What is a spot rate?






41. Marekts are open...






42. How can transaction exposure be described?






43. What are some characteristics of swaps?






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






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






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






47. What is the fourth characteristic of transaction exposure?






48. What are the characteristics of economic exposure?






49. What is hedging?


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