Quiz on International Finance

Which of the following BEST defines International Finance?

• The study of stock market trends

• Monetary interactions between two or more countries

• Global banking regulations

• Corporate investment strategies

The Foreign Exchange Market daily trading volume in 2022 was approximately:

• $3.5 trillion

• $5.6 trillion

• $7.5 trillion

• $2.1 trillion

Which currency is involved in approximately 88% of all forex trades?

• Euro

• Japanese Yen

• British Pound

• U.S. Dollar

The first true forex market was established in:

• London

• Amsterdam

• New York

• Tokyo

Which of the following is NOT a type of Foreign Exchange Market?

• Spot Forex Market

• Forward Forex Market

• Derivatives Forex Market

• Futures Forex Market

The Bretton Woods system was established:

• Before World War II

• After World War II

• During World War I

• During the Great Depression

Which technological advancement has MOST transformed forex trading?

• Paper-based trading

• Automated trading systems

• Manual calculation methods

• Telephone trading

A spot exchange rate represents:

• A future currency transaction

• A historical currency value

• The current market price of currency exchange

• A theoretical currency valuation

Which participant is NOT typically found in the Foreign Exchange Market?

• Commercial Banks

• Central Banks

• Retail Clothing Stores

• Hedge Funds

The primary function of the Foreign Exchange Market is:

• Currency speculation

• Currency conversion

• Stock trading

• Real estate investment