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FOREX

Total questions: 20

Worksheet time: 12mins

Name
Class
Date
1.

When is the forex market open?

a)

Everyday

b)

5 days a week, 12 hours a day

c)

5 days a week, 24 hours a day

d)

4 days a week, 24 hours a day

2.

If you have been out of the country and went to another country using their money, you have participated in the Foreign Exchange.

a)

True

b)

False

3.

What is the exchange rate?

a)

The amount of money that is charged for having an account.

b)

The rate for which the country decides they deserve for their money

c)

The rate buyers pay in order to exchange their currency for different currency

d)

The rate that you pay to go into the country

4.

What play the greatest part in what the exchange rate is?

a)

Political situations between countries

b)

The Dow Jones

c)

the overall health of a country

d)

Supply and Demand

5.

If there is a high demand for a currency, the rate will____:

a)

increase

b)

decrease

6.

If the demand is low for a currency then the rate will _____.

a)

Increase

b)

Decrease

7.

What exchange does the most trading volume

a)

New York Stock Exchange

b)

Tokyo Stock Exchange

c)

London Stock Exchange

d)

Forex Market

8.

What is the daily trading volume of the Forex Market?

a)

7.2 Billion

b)

22.4 Billion

c)

5.3 Trillion

d)

5.3 Billion

9.

How do you profit in the Forex Market?

a)

You buy a currency when it is low hold it till it's rate increases and sell it for a profit.

b)

You wait till the demand is high and buy the currency then sell it when there is a large supply.

c)

Buy currencies where the country is having big problems and wait for them to get better then sell.

d)

It's all about the timing. You buy a currency and then wait until midnight to sell it.

10.

If a government wants to increase the value of its currency, they can

a)

not use the interest rate to reach this goal

b)

decrease the interest rate

c)

increase the interest rate

11.

High supply causes _______ prices.

a)

high

b)

low

12.

High demand causes _______ prices.

a)

high

b)

low

13.

When there is a scarce supply of a given commodity, prices should _______.

a)

rise

b)

fall

14.
The term __________ is used to describe what those in one country buy from those in other countries.
a)
A. exports
b)
B. imports
c)
C. trade
d)
D. surplus
15.
When Mataeo buys Euros through _________________________, he will use his U.S. dollars to pay for them.
a)
A. the foreign exchange market
b)
B. the currency exchange market
c)
C. a floating exchange market
d)
D. foreign currency market
16.

FOREX RATE is

a)

Domestic currency

b)

Value of domestic currency in terms of foreign currency

c)

foreign currency

17.

What is Foreign Exchange Market?

a)

a place where corporation and government can raise fund

b)

a market for converting currency of one country into another country

c)

trading of instrument by an exchange of securities

18.

The purpose of the Forex market is to encourage international investment and trade.

a)

False

b)

True

19.

In the foreign exchange market for the Mexican peso, which of the following would best describe the exchange rate for the peso?

a)

a. The interest rate earned from saving pesos

b)

b. The price of a peso in terms of some other currency

c)

c. The price of a good in Mexico in terms of another goods in Mexico

d)

d.The price of a peso in terms of pesos

20.

Select all of the following that will be impacted by a change in exchange rates:

a)

Prices of exports

b)

Costs of imports

c)

Competiveness

d)

None of the answers