This quiz works best with JavaScript enabled. Home > International > Currency > Foreign Currency Markets – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Foreign Currency Markets Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Price in one country in relation to other currencies in the international exchange market is known as- A) Equilibrium rate. B) Fixed exchange rate. C) Exchange rate. D) Flexible exchange rate. Show Answer Correct Answer: C) Exchange rate. 2. Occurs when two parties agree to exchange currency and execute the deal at some specific date in the future A) Forward Exchange Rates. B) Spot Exchange Rates. C) Exchange Rate. D) Foreign Exchange Rate. Show Answer Correct Answer: A) Forward Exchange Rates. 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. A) Commercial customers. B) Speculators. C) Arbitrageurs. D) Individuals. Show Answer Correct Answer: C) Arbitrageurs. 4. Under which system, gold was taken as the common unit of parity between currencies of different countries in circulation? A) Bretton woods system of exchange rate. B) Gold Standard System of exchange rate. C) Flexible exchange rate system. D) Managed floating system of exchange rate. Show Answer Correct Answer: B) Gold Standard System of exchange rate. 5. Demand for foreign currency depends upon- A) Repayment of international loans. B) Investment in rest of the world. C) Both. D) None of above. Show Answer Correct Answer: C) Both. 6. Of Forex trading is in ..... A) Seven major currencies. B) Seven major countries. C) Seven major economic centers. D) None of above. Show Answer Correct Answer: A) Seven major currencies. 7. The statutory organization of Indian government for foreign exchange is A) FERA 1973. B) FEMA 1999. C) FEDAI. D) None of the aboe. Show Answer Correct Answer: B) FEMA 1999. 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. A) EUROCURRENCY. B) EUROCURRENCY MARKET. C) EURO DOLLAR. D) EURO STEP. Show Answer Correct Answer: A) EUROCURRENCY. 9. The exchange rate is determined when A) Demand for Forex=Supply of Forex. B) Demand for Forex > Supply of Forex. C) Demand for Forex < Supply of Forex. D) None of above. Show Answer Correct Answer: A) Demand for Forex=Supply of Forex. 10. When supply of foreign exchange increases, the equilibrium exchange rate will- A) Rise. B) Fall. C) No change. D) None of above. Show Answer Correct Answer: B) Fall. 11. Foreign Currency Non-Resident (Banks) account can be opened in the name of the following: A) Non-resident Indian. B) Person of Indian origin. C) Overseas Corporate Bodies. D) Both a and b. Show Answer Correct Answer: D) Both a and b. 12. Euro was launched in A) 1999. B) 2000. C) 2004. D) 2002. Show Answer Correct Answer: A) 1999. 13. The issue of the ..... is controlled by RBI A) Euro. B) USD. C) Rupee. D) Ringett. Show Answer Correct Answer: C) Rupee. 14. International trade free of government control and trade barriers A) Trade barrier. B) Free trade. C) Tariff. D) Voluntary trade. Show Answer Correct Answer: B) Free trade. 15. LERMS was introduced in ..... A) 1991. B) 1980. C) 1992. D) 2000. Show Answer Correct Answer: C) 1992. 16. If rupees 120 are required to buy $ 2, instead of rupees 100 for $ 1 earlier, than: A) Domestic currency has appreciated. B) Domestic currency has depreciated Aad. C) None of these. D) Both are correct. Show Answer Correct Answer: A) Domestic currency has appreciated. 17. Depreciation is A) Fall in the value of domestic currency in terms of foreign currency. B) Rise in the value of domestic currency in terms of foreign currency. C) None. D) None of above. Show Answer Correct Answer: A) Fall in the value of domestic currency in terms of foreign currency. 18. Under the ....., each country pegged the value of its currency to gold. A) Mercantilism. B) Gold standard. C) Econometrics. D) Factor endowment theory. Show Answer Correct Answer: B) Gold standard. 19. A simultenous lending and borrowing of 2 different currencies between 2 investors A) OPTION TRANSACTION. B) SPOT TRANSACTION. C) SWAP TRANSACTION. D) FUTURE TRANSACTION. Show Answer Correct Answer: C) SWAP TRANSACTION. 20. 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 ..... A) Increase, decrease. B) Increase, increase. C) Decrease, decrease. D) Decrease, increase. Show Answer Correct Answer: B) Increase, increase. Next →Related QuizzesInternational QuizzesForeign Currency Markets Quiz 2Foreign Currency Markets Quiz 3Foreign Currency Markets Quiz 4Foreign Currency Markets Quiz 5Foreign Currency Markets Quiz 6Foreign Currency Markets Quiz 7Foreign Currency Markets Quiz 8Foreign Currency Markets Quiz 9Foreign Currency Markets Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books