Trading Quiz - 8

A few decades ago, President Robert Mugabe embarked in a reformation of economy. With new policies, only local are allowed to own lands that are meant for farming.

However, due to lack of experience, the country's crop production dropped drastically and affect other economic sectors. This has lead to rapid rise in price of goods up to 500%.

Based on the scenario above, what is the most accurate term to describe the economic situation that has occured?

• Hyperinflation

• Inflation

• Deflation

• Stagflation

Post pandemic, US economy recovered rapidly with healthy GDP readings, robust employment market and high spending among consumers.

However, as jobs creation were too rapid, domestic inflation has rose to a new high in more than 40 years at around 9%. Due to this, consumers may not be able to keep up with expensive goods and services.

Based on the scenario above, what is the action that may most likely deployed by Federal Reserve (US Central Bank)?

• Hike interest rates

• Cut interest rates

• Introduce Quantitative Easing (QE)

• Decrease reserve ratio

Nasis was analyzing several currency pairs for trading opportunities of the day. He stumbled upon EURGBP which has the following chart characteristics:

1. Able to draw an upward trendline

2. Shares a similar resistance level

Nasis concludes that the pair may be able to continue its uptrend if breakout occurs.

Which chart pattern most accurately depicts the characteristics explained above?

• Ascending triangle

• Symmetrical triangle

• Rising wedge

• Double bottom

Manisha placed a SELL order on EURGBP. Several days has passed and her order has yet to reach the TAKE PROFIT level that was preset at 0.8490.

Thus, she re-analyze the currency pair and that it is trading with a familiar chart pattern.

Based on the attached image, which chart pattern best describe it?

• Head and shoulders

• Double top

• Inversed cup and handle

• Falling wedge

Garret placed an order with the following details:

0.17 lot of BUY GBPUSD with entry price of 1.16040.

Stop Loss was set at 1.14000 while Take Profit was set at 1.19240.

After placing the order, UK Prime Minister Boris Johnson will be resigning from his position and his predecessor is yet to be determined.

Following the announcement, GBPUSD fell as low as 1.14150.

Based on the information above, what is Garret order's possible loss after the announcement?

• -321.30 USD

• -3,213.00 USD

• -346.80 USD

• -3,468.00 USD

Hanif is contemplating to place the following order:

0.27 lot of BUY EURUSD with an entry price of 1.10100.

0.8 lot of SELL USDJPY with an entry price of 142.320.

However, he decided to change the lot size of both orders to:

EURUSD: 0.87 lot

USDJPY: 1.23 lot

Based on the new lot size, what is the pip value for both orders?

• EURUSD: 8.70 USD

  USDJPY: 1,230 JPY

• EURUSD: 2.70 USD

  USDJPY: 800 JPY

• EURUSD: 87.00 USD

  USDJPY: 12,300 JPY

• EURUSD: 27.00 USD

  USDJPY: 8,000 JPY

Pikaa opened 6.5 lot of SELL order on AUDUSD with an entry price of 0.6853.

She left the order for 3 nights before closing it.

What is the swap rate that was charged if she left it open for 2 additional nights (ignoring triple charge on Wednesdays) based on swap rate below?

Swap long: -2.5680

Swap short: 2.0780

• 67.54 USD

• -67.54 USD

• 83.46 USD

• -83.46 USD

Lie Suen deposited 15,780 USD into her new trading account with ZFX. She chose the leverage of 1:500 for the account.

After analyzing the market, she opened several orders with its status below:

0.1 lot of EURUSD BUY that has a floating loss of -1,200 USD.

0.06 lot of GBPUSD SELL that has a floating profit of 800 USD.

0.27 lot of AUDUSD SELL that has a floating profit of 3,570 USD.

Based on the information above, what is her balance if she decided to keep all the positions open/floating?

• 15,780 USD

• 18,950 USD

• 14,580 USD

• 0 USD

Which example below best describes stagflation?

• United States undergoes a period whereby it has high inflation rate and high unemployment.

• Japan's lost decade whereby price of goods declined and economy remains stagnant.

• Asian financial crisis whereby several nation entered into low inflation with high unemployment.

• Venezuela entered into a state of economic distraught with its currency rendered valueless.

Kush opened an order with the following details:

1.75 lot of GBPUSD BUY with an entry price of 1.16430.

After 30 minutes, GBPUSD undergoes high volatility due to the announcement of the passing of Queen Elizabeth II.

GBPUSD drops to 1.12170 before climbing back up to 1.13890.

Based on the price movement above, what is the highest amount of loss that has been incurred on this order?

• -7,455 USD

• -4,445 USD

• -74,555 USD

• -44,450 USD