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. How can translation exposure be described?






2. What are some strategies for managing forex risk?






3. What are some characteristics of swaps?






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






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






6. What holds true to Purchase Power Parity Theory?






7. What is the first issue with EFSF?






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






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






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






11. How can transaction exposure be described?






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






13. What are the important trading centers?






14. What are the purposes of fiscal policies?






15. What are some factors that influence exchange rates?






16. What is economic exposure?






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






18. What is the second characteristic of lead strategy?






19. What is the third characteristic of transaction exposure?






20. What is a forward rate?






21. What is the first characteristic of transaction exposure ?






22. Marekts are open...






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

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24. The euro faces risks fo recapitalization?






25. What is the second issue with EFSF?






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






27. What is non convertible currency?






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






29. What is a currency swamp?






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






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






32. What are the types of Exchange Rate Fluctuations?






33. What is the nominal exchange rate?






34. What are the characteristics of economic exposure?






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






36. How do you establish central control?






37. What causes big mac prices to vary?






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






39. What are the two ways to quote currency?






40. What is arbitrage?






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






42. What is the second characteristic of lag strategy?






43. What is hedging?

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44. When do countries use the foreign exchange market?






45. What are other strategies for managing forex risk?






46. What do monetary policies do?






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






48. What is the fourth characteristic of transaction exposure?






49. What is the first characteristic of lead strategy?






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