FOREX FUNDAMENTALS

Forex stands for:

• Foreign Objects & Rare Exchange

• Foreign Exchange

• For-profit Exchange Rates

• Financial Objects & Rapid Exchange

The forex market facilitates the exchange of:

• Stocks and bonds

• Physical goods

• Currencies

• Options contracts

The forex market is:

• A centralized location

• An over-the-counter(OTC) market

• Both a and b

• Neither a nor b

The primary purpose of the forex market is:

• To set fixed exchange rates

• To finance international trade

• To speculate on currency movements

• All of the above

The forex market is opened:

• During regular business hours

• 24 hours a day, 5 days a week

• 24 hours a day, 7 days a week

• Varies depending on location

Currencies are traded in:

• Lots

• Pairs

• Contracts

• All of the above

A currency pair represents:

• The exchange rate between two currencies

• The individual price of a currency

• The cost of shipping goods

• A specific amount of currency

The base currency in a pair:

• Is always the stronger currency

• Is always the weaker currency

• Determines the price of the quote currency

• Doesn't matter

The quote currency in a pair:

• Is always the stronger currency

• Is always the weaker currency

• Determines the price of the base currency

• Doesn't matter

Popular forex pairs include:

• USD/EUR

• GBP/JPY

• AUD/USD

• All of the above