International Financial Market Module 2 Quiz

What treaty laid the foundation for the creation of the euro?

• Maastricht Treaty

• Treaty of Rome

• Bretton Woods Agreement

• Lisbon Treaty

When was the euro officially launched as an invisible currency?

• 1 January 2002

• 1 January 2000

• 1 January 1999

• 1 January 1998

How many EU member countries currently use the euro?

• 15

• 20

• 12

• 27

What is the primary function of the international money market?

• To regulate interest rates

• To manage real estate investments

• To handle currency trading between countries

• To facilitate stock trading

What is eurocurrency?

• Currency used only in Europe

• Any currency deposited in banks outside the country that issued it

• Currency that is only used for trading stocks

• A type of cryptocurrency

Which of the following is NOT a type of eurocurrency market instrument?

• Eurostock

• Eurodollar

• Eurobond

• Euroyen

What does the European Monetary System (EMS) aim to achieve?

• Complete economic independence

• Monetary stability in Europe

• A single currency for all countries

• Elimination of trade barriers

What is the main difference between the forward and futures forex markets?

• Futures involve immediate exchange, forwards do not

• There is no difference

• Forwards are regulated, futures are not

• Futures are regulated, forwards are not

Which of the following is a benefit of eurocurrency markets?

• Increased risks

• Lower interest rates for borrowers

• Limited access to capital

• Higher regulation

What is the primary role of the forex market?

• To manage stock prices

• To determine foreign exchange rates

• To regulate interest rates

• To facilitate real estate transactions