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Foreign Currency Markets Quiz 1 (30 MCQs)

Quiz Instructions

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1. Price in one country in relation to other currencies in the international exchange market is known as-
2. Occurs when two parties agree to exchange currency and execute the deal at some specific date in the future
3. ..... attempt to exploit small differences in the price of a currency between markets by buying currencies in lower-priced markets and selling in higher-priced markets.
4. Under which system, gold was taken as the common unit of parity between currencies of different countries in circulation?
5. Demand for foreign currency depends upon-
6. Of Forex trading is in .....
7. The statutory organization of Indian government for foreign exchange is
8. Currency that is deposited at a foreign bank outside of its home country. Contrary to its name, the term does not refer to euros that are deposited outside of Europe.
9. When supply of foreign exchange increases, the equilibrium exchange rate will-
10. Foreign Currency Non-Resident (Banks) account can be opened in the name of the following:
11. Euro was launched in
12. The issue of the ..... is controlled by RBI
13. International trade free of government control and trade barriers
14. LERMS was introduced in .....
15. If rupees 120 are required to buy $ 2, instead of rupees 100 for $ 1 earlier, than:
16. Under the ....., each country pegged the value of its currency to gold.
17. A simultenous lending and borrowing of 2 different currencies between 2 investors
18. If Americans want to purchase more South Korean cars, the supply of dollars in the foreign exchange market will ..... and demand for the Won, the South Korean currency, will .....
19. The transaction that has fixed initial margin and kept as a collateral for future position.
20. On average, more than a trillion .....
21. A method of trading stocks, currencies, etc. through electronic stock markets, forex, crypto currency.
22. The exchange rate is
23. It is very difficult to interpret news in foreign exchange markets because
24. When the value of the British pound changes from $ 1.25 per pound to $ 1.50 per pound, the pound has ..... and the Canadian dollar has .....
25. Everything else held constant, when a country's currency appreciates, the country's goods abroad become ..... expensive and foreign goods in that country become ..... expensive.
26. If the dollar appreciates relative to the British pound,
27. An action a government uses to control trade between countries
28. When domestic currency appreciates, it benefits ..... and harms .....
29. The ..... is a monetary policy tool that use to determine the amount of deposits that banks must hold.
30. The primary purpose of the foreign-exchange market is to
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