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 second characteristic of lag strategy?






2. What is the second characteristic of lead strategy?






3. Most Transaction inovolve...






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


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






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






7. What is non convertible currency?






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






9. What are some factors that influence exchange rates?






10. What is the nominal exchange rate?






11. What is the real exchange rate?






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






13. What is a spot rate?






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






15. What is the first issue with EFSF?






16. What are the purposes of fiscal policies?






17. The euro faces risks fo recapitalization?






18. What is free convertible currency?






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






20. What is the nature of the forex market?






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






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






23. What is the first characteristic of lead strategy?






24. No single theory can explain explain the causes the value of currencies to change. True or False?






25. What is the third characteristic of transaction exposure?






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






27. What is the first characteristic of transaction exposure ?






28. How do you establish central control?






29. What is the second issue with EFSF?






30. What holds true to Purchase Power Parity Theory?






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






32. What is the first characteristic of lag strategy?






33. What are the two ways to quote currency?






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






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






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






37. What is the law of one price?






38. According to economic theories of exchage rate determination?






39. What do monetary policies do?






40. What is hedging?


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






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






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






44. What is a forward rate?






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






46. What are the important trading centers?






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






48. What are some strategies for managing forex risk?






49. When do countries use the foreign exchange market?






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