This quiz works best with JavaScript enabled. Home > International > Currency > Foreign Currency Markets – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Foreign Currency Markets Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is the merit of flexible exchange rate system? A) Optimum resource allocation. B) Market stability. C) External shocks. D) Stable monetary policy. Show Answer Correct Answer: A) Optimum resource allocation. 2. KINDS OF TRADERS:These traders only targets 5 to 10 pips per day. A) Postion Traders. B) Scalpers. C) Day Traders. D) Company Traders. Show Answer Correct Answer: B) Scalpers. 3. In 2009 the exchange rate of the Singapore dollar changed from 1.49 = 1 US dollar to 1.43 Singapore dollars = 1 US dollar.How would this affect the import prices and export prices for Singapore? A) Decrease/decrease. B) Decrease/increase. C) Increase/decrease. D) Increase/increase. Show Answer Correct Answer: B) Decrease/increase. 4. What type of exchange rate system do most countries operate under? A) Flexible. B) Floating. C) Fictitious. D) Fixed. Show Answer Correct Answer: B) Floating. 5. In an agreement to exchange dollars for euros in three months at a price of $ 0.90 per euro, the price is the ..... A) Spot exchange rate. B) Money exchange rate. C) Forward exchange rate. D) Fixed exchange rate. Show Answer Correct Answer: C) Forward exchange rate. 6. Which is money market instruments?i. Negotiable Intruments of Deposits (NIDs)ii. Treasury Bills (TBs)iii. Malaysian Government Securities(MGS)iv. Lembaga Tabung Haji A) I, ii and iii. B) Ii, iii and iv. C) I, ii and iv. D) All of above. Show Answer Correct Answer: A) I, ii and iii. 7. Who maintains the foreign exchange reserves in India? A) Reserve Bank of India. B) State Bank of India. C) Ministry of Finance, Government of India. D) Export-Import Bank of India. Show Answer Correct Answer: A) Reserve Bank of India. 8. In order to prevent appreciation of the rupee against the US$ , the RBI will ..... A) Sell US$. B) Sell bonds. C) Buy bonds. D) Buy US$. Show Answer Correct Answer: D) Buy US$. 9. ..... is a commodity that consists of currencies issued by countries other than one's own. A) Eurozone. B) Foreign exchange. C) Floating exchange. D) Direct exchange. Show Answer Correct Answer: B) Foreign exchange. 10. Forward market is that market which: A) Handles transactions of foreign exchange meant for future delivery. B) Handles current transactions. C) Handles current as well as future transactions. D) None of these. Show Answer Correct Answer: A) Handles transactions of foreign exchange meant for future delivery. 11. When an overseas banking operation is separately incorporated from the parent bank, what is it called? A) Subsidiary bank. B) Branch bank. C) Affiliated bank. D) Correspondent bank. Show Answer Correct Answer: A) Subsidiary bank. 12. Under flexible exchange rate system, exchange rate is determined by: A) Demand for foreign exchange. B) Supply demand forces. C) Supply of foreign exchange. D) Government. Show Answer Correct Answer: B) Supply demand forces. 13. Major reasons to study international finance include: A) To understand a global economy. B) To understand the impact of global finance on businesses. C) To understand the European Union. D) To make intelligent personal decisions. Show Answer Correct Answer: A) To understand a global economy. 14. The three different types of forex transactions are A) Spot, forward, swaps. B) Spot, Cash, OTC. C) Spot, forwards, Futures. D) Spot, futures & options. Show Answer Correct Answer: A) Spot, forward, swaps. 15. Factors affecting forex market is ..... A) Geopolitical factors. B) Inflation. C) Uncertainty about future. D) None of above. Show Answer Correct Answer: A) Geopolitical factors. 16. Rate at which a foreign exchange dealer converts one currency into another currency on a particular day A) Exchange Rate. B) Spot Exchange Rates. C) Forward Exchange Rates. D) Foreign Exchange Rate. Show Answer Correct Answer: B) Spot Exchange Rates. 17. The forward market is especially well-suited to offer hedging protection against A) Translation risk exposure. B) Transactions risk exposure. C) Political risk exposure. D) Taxation. Show Answer Correct Answer: B) Transactions risk exposure. 18. When the exchange rate Rises due to managed floating, it is called; A) Devaluation. B) Appreciation. C) Depreciation. D) Revaluation. Show Answer Correct Answer: B) Appreciation. 19. India is facing continuous deficit in BOP. In the foreign exchange market, rupee is expected to A) Depreciate. B) Appreciate. C) No specific tendency. D) All of the above. Show Answer Correct Answer: A) Depreciate. 20. Which of the following is not considered a hard currency? A) Euro. B) Mexican peso. C) Japanese yen. D) US dollar. Show Answer Correct Answer: B) Mexican peso. ← PreviousNext →Related QuizzesInternational QuizzesForeign Currency Markets Quiz 1Foreign Currency Markets Quiz 2Foreign Currency Markets Quiz 3Foreign Currency Markets Quiz 4Foreign 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