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 transaction exposure be described?






2. What is the second issue with EFSF?






3. When do countries use the foreign exchange market?






4. What is a currency swamp?






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






6. What is arbitrage?






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






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






9. Most Transaction inovolve...






10. What is externally convertible currency






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






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






13. What is the second characteristic of lag strategy?






14. What holds true to Purchase Power Parity Theory?






15. How do you establish central control?






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






17. What are the types of Exchange Rate Fluctuations?






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






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






20. What are some characteristics of swaps?






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






22. What causes big mac prices to vary?






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






24. What are other strategies for managing forex risk?






25. Marekts are open...






26. What do monetary policies do?






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






28. How can translation exposure be described?






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






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






31. The euro faces risks fo recapitalization?






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






33. What is economic exposure?






34. What are the two ways to quote currency?






35. What are the characteristics of economic exposure?






36. What is the fourth characteristic of transaction exposure?






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






38. What is the second characteristic of transaction exposure?






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






40. What is the nominal exchange rate?






41. What is the characteristic of translation expose?






42. What is the first characteristic of transaction exposure ?






43. What is the third characteristic of transaction exposure?






44. What are the important trading centers?






45. What is the first characteristic of lag strategy?






46. What are some strategies for managing forex risk?






47. What are some factors that influence exchange rates?






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






49. What is the law of one price?






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