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Test your basic knowledge |
Foreign Trade And Exchange Vocab
Start Test
Study First
Subjects
:
business-skills
,
industries
Instructions:
Answer 25 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. Relations between 1 economy and others around the world
short on currency
Interdependence
call
exchange rate
2. A difference in the supply and demand will automatically be fixed in the market
short on currency
when there is too much $
floating exchange rate
supply and demand (supply)
3. Inflation - value of money declines - prices rise
tariff
hard currency
when there is too much $
when there is not enough $
4. Trader purchases a lot of currency
when there is not enough $
short on currency
a company becomes multinational when...
long on currency
5. Largest market in the world - 24 hour buying and selling currencies takes place - no central headquarters
short on currency
FX Market
put
supply and demand (demand)
6. A generally excepted form of money
World Bank
hard currency
currency
Group of 7 (G7-G8)
7. Developed countries money (america - england - japan)
hard currency
long on currency
exchange rate
Bank for International Settlements
8. Rate the government sets and keeps as the official exchange rate
European Union
supply and demand (demand)
fixed exchange rate
when there is too much $
9. Established Januaray 1 - 1995 - only global international organization that deals with rules of trade between nations
put
FX Market
World Trade Organization
a company becomes multinational when...
10. Founded in 1944 - international organization of 183 countries - promotes money cooperation
supply and demand (demand)
a company becomes multinational when...
International Monetary Fund
when there is too much $
11. In Switzerland - bank for central banks provides broad range of financial services - deals with value of currencies and Who is trading with whom
Bank for International Settlements
short on currency
supply and demand (demand)
a company becomes multinational when...
12. Developing countries money (mexico - madagascar - Egypt)
soft currency
Group of 7 (G7-G8)
a company becomes multinational when...
FX Market
13. Agreement where countries agree to trade together not illegal documents
FX Market
put
European Union
Trade Bloc
14. Represents how much the market can offer
put
supply and demand (demand)
World Trade Organization
fixed exchange rate
15. Started in 1975 - group of developed countries (US - Germany - France - Great Britan - Italy) Russia wants to join which would make it G8
hard currency
Group of 7 (G7-G8)
World Trade Organization
FX Market
16. A government tax on imports or exports - also called duty
long on currency
fixed exchange rate
tariff
supply and demand (supply)
17. Sluggish economic growth - rising unemployment
when there is not enough $
floating exchange rate
hard currency
Trade Bloc
18. Began 1961 has 15 countries - euro in all 15 countries exchange and services and the right to work in other countries
put
European Union
fixed exchange rate
call
19. Refers to how much quantity of product/service is desired by the buyer
supply and demand (supply)
Bank for International Settlements
exchange rate
supply and demand (demand)
20. The rate at which one currency can be exchanged for another
call
Interdependence
exchange rate
when there is not enough $
21. When the headquarters/parent of the company is effectively owned in 2 or more countries
tariff
Bank for International Settlements
hard currency
a company becomes multinational when...
22. Sell
put
soft currency
tariff
when there is not enough $
23. Buy
when there is too much $
when there is not enough $
call
fixed exchange rate
24. Founded in 1944 helps poorest people in the poorest countries - provides resources - shares knowledge - builds capacity in developing countries - tries to organize people and resources of country so they can be involved in the global market place
World Bank
fixed exchange rate
floating exchange rate
long on currency
25. Trader sells a lot of a currency
short on currency
currency
soft currency
exchange rate