This quiz works best with JavaScript enabled. Home > International > Currency > Foreign Currency Markets – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Foreign Currency Markets Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Spot market is a market for spot rate and spot date. When is the exact of spot date? A) The date both parties deal with each other to perform foreign currency transaction. B) Two days after transaction. C) Days exclude holidays and weekends. D) None of above. Show Answer Correct Answer: B) Two days after transaction. 2. Exchange rate is the price of a currency expressed in terms of: A) Gold. B) Metal. C) Another currency. D) None of these. Show Answer Correct Answer: C) Another currency. 3. The demand for a currency in a foreign exchange market arises from the demand for the country's goods, services, and financial assets and shows the ..... relationship between the exchange rate and the quantity demanded of a currency A) Positive. B) Inverse. C) Direct. D) None of above. Show Answer Correct Answer: B) Inverse. 4. When the RBI intervenes to maintain a desirable exchange rate, it is termed as ..... A) Sterilized intervention. B) Managed intervention. C) Unsterilized intervention. D) None of the above. Show Answer Correct Answer: C) Unsterilized intervention. 5. Which of the following is NOT the money market instruments? A) Commercial Paper. B) Banker's Acceptance. C) Repurchase Agreement. D) Factoring. Show Answer Correct Answer: D) Factoring. 6. Another word for stocks and shares is ..... A) Turnover. B) Capital. C) Equity. D) None of above. Show Answer Correct Answer: C) Equity. 7. The word that describe something that is easy to sell is ..... A) Trade-able. B) Liquid. C) Sellable. D) None of above. Show Answer Correct Answer: B) Liquid. 8. How would China react to a depreciation of its own currency (the yuan)? A) It would not react to a change in the value of the currency. B) The quantity of yuan supplied would increase. C) The quantity of yuan supplied would decrease. D) None of above. Show Answer Correct Answer: C) The quantity of yuan supplied would decrease. 9. The ..... states that exchange rates between any two currencies will adjust to reflect changes in the price levels of the two countries. A) Theory of purchasing power parity. B) Law of one price. C) Theory of money neutrality. D) Quantity theory of money. Show Answer Correct Answer: A) Theory of purchasing power parity. 10. Managed floating system is A) Flexible system of exchange rate. B) Mixture of fixed exchange rate and fixed exchange rate. C) A system managed by a foreign country. D) None of above. Show Answer Correct Answer: B) Mixture of fixed exchange rate and fixed exchange rate. 11. All of the following are Qualities of Forex Trading Except A) Minimal Time Commitment. B) Mini Trading account starts at USD200. C) Minimal Investment. D) No Risk. Show Answer Correct Answer: D) No Risk. 12. The sale of U.S. treasury bonds on the open market will cause a(n) ..... in the U.S. price level and a(n) ..... of the U.S. dollar in the foreign exchange market. A) Decrease, appreciation. B) Decrease, depreciation. C) Increase, appreciation. D) Increase, depreciation. Show Answer Correct Answer: A) Decrease, appreciation. 13. The thing that belongs to one's own country is ..... A) Domestic. B) Government owned. C) Private. D) None of above. Show Answer Correct Answer: A) Domestic. 14. Foreign Exchange rates in India are determined by: A) Finance Ministry. B) RBI. C) FEDAI. D) Market forces of demand & supply. Show Answer Correct Answer: B) RBI. 15. The volume of foreign currency transactions is 30 ..... A) Times less than the volume of trading in the US stocks. B) Percent of the total volume of stocks trading. C) Times more than the volume of trading in the US stocks. D) None of above. Show Answer Correct Answer: C) Times more than the volume of trading in the US stocks. 16. Spot Market deals in A) Current Transaction. B) Future transaction. C) Current as well as future transaction. D) Transactions meant for future delivery. Show Answer Correct Answer: A) Current Transaction. 17. Pegging down of national currency is known as A) Over valuation. B) Under valuation. C) Revaluation. D) All of the above. Show Answer Correct Answer: B) Under valuation. 18. When an overseas banking operation is incorporated within the parent bank, what is it called? A) Subsidiary bank. B) Branch bank. C) Offshore bank. D) Correspondent bank. Show Answer Correct Answer: B) Branch bank. 19. Contract Lot Sizes:The standard unit of a standard lot has a value of ..... ? A) 1, 000. B) 10.000. C) 100, 000. D) 1. Show Answer Correct Answer: C) 100, 000. 20. Exchange rates are determined in A) The money market. B) The foreign exchange market. C) The stock market. D) The capital market. Show Answer Correct Answer: B) The foreign exchange market. ← PreviousNext →Related QuizzesInternational QuizzesForeign Currency Markets Quiz 1Foreign Currency Markets Quiz 2Foreign Currency Markets Quiz 3Foreign 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