This quiz works best with JavaScript enabled. Home > International > Currency > Foreign Currency Markets – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Foreign Currency Markets Quiz 8 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. KINDS OF TRADERS:The following are the attributes of Swing Traders except: A) Charts:H1-H4. B) Trade Duration:Less Than a week. C) Target:10-20 pips per day. D) None of above. Show Answer Correct Answer: C) Target:10-20 pips per day. 2. Spot market is the market where; A) Only current transactions are handled. B) Forward rate of exchange is determined. C) All of the above. D) None of these. Show Answer Correct Answer: A) Only current transactions are handled. 3. The euro is: A) A currency that is only traded offshore. B) A weighted average of the currencies of EU member countries. C) The currency of EU member countries. D) A currency, the value of which is determined by demand and supply. Show Answer Correct Answer: D) A currency, the value of which is determined by demand and supply. 4. Economics teaches that: A) Foreign exchange markets are always efficient. B) Exchange rates should be determined by the market fundamentals. C) Exchange rates are sometimes dependent to interest rates. D) None of above. Show Answer Correct Answer: B) Exchange rates should be determined by the market fundamentals. 5. How much of one country's money is worth compared to another country? A) Exchange rate. B) Exchange control. C) Currency. D) Foreign trade. Show Answer Correct Answer: A) Exchange rate. 6. Which of the following might affect the cost of a trip to Japan by a resident of Britain? A) The depreciation of the Euro. B) The depreciation of the US dollar. C) The time at which the British resident purchases Yen. D) All of the above. Show Answer Correct Answer: C) The time at which the British resident purchases Yen. 7. ..... in the domestic interest rate causes the demand for domestic assets to increase and the domestic currency to ....., everything else held constant. A) An increase; appreciate. B) An increase; depreciate. C) A decrease; appreciate. D) A decrease; depreciate. Show Answer Correct Answer: A) An increase; appreciate. 8. India's foreign exchange system is A) Free float. B) Fixed. C) Managed float. D) None. Show Answer Correct Answer: C) Managed float. 9. Identify the most traded currency around the world. A) US Dollar. B) Malaysian Ringgit. C) Euro. D) Yuan. Show Answer Correct Answer: A) US Dollar. 10. The responsibility for administration of FEMA is vested with A) RBI. B) Central Government. C) State Government. D) Banks. Show Answer Correct Answer: A) RBI. 11. GBP is the currency of ..... A) UK. B) USA. C) Japan. D) Chaina. Show Answer Correct Answer: A) UK. 12. It is is the trading of different national currencies or units of account A) Importation. B) Foreign Exchange. C) Credit Market. D) None of the above. Show Answer Correct Answer: B) Foreign Exchange. 13. Demand curve of a foreign exchange is: A) Negatively related to the rate of exchange. B) Proportionately related to rate of exchange. C) Positively related to rate of exchange. D) Not related to rate of exchange. Show Answer Correct Answer: A) Negatively related to the rate of exchange. 14. The total amount of money spent in a market is ..... A) The turnover. B) The liquidity. C) The equity. D) None of above. Show Answer Correct Answer: A) The turnover. 15. All Forex transactions involve ..... A) Three types of currencies. B) Two counterparts. C) Three parties. D) None of above. Show Answer Correct Answer: B) Two counterparts. 16. Decreased government spending would result in A) A lower discount rate. B) Higher prices. C) Lower taxes. D) Higher reserve amount. Show Answer Correct Answer: C) Lower taxes. 17. The extent to which a firm's future international earning power is affected by changes in exchange rates A) Economic exposure. B) Translation exposure. C) Transaction exposure. D) None of above. Show Answer Correct Answer: A) Economic exposure. 18. Forex is qouted in currency pairs. Each currency is given a 3-letter code.What country code is this:NZD A) New Zealand Development. B) New Zealand. C) New Zealand Department. D) New Zealand Dollar. Show Answer Correct Answer: D) New Zealand Dollar. 19. Everything else held constant, increased demand for a country's ..... causes its currency to appreciate in the long run, while increased demand for ..... causes its currency to depreciate. A) Imports; imports. B) Imports; exports. C) Exports; imports. D) Exports; exports. Show Answer Correct Answer: C) Exports; imports. 20. The government issues currency and coins to A) Promote global trade. B) Control exchange of goods and services. C) Promote monopolies. D) Help make exchange of goods and services easier. Show Answer Correct Answer: D) Help make exchange of goods and services easier. ← PreviousNext →Related QuizzesInternational QuizzesForeign Currency Markets Quiz 1Foreign 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 9Foreign Currency Markets Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books