Worksheetsforex
Total questions: 19
Worksheet time: 4mins
What is Forex Market?
a place where corporation and government can raise fund
a market for converting currency of one country into another country
trading of instrument by an exchange of securities
The purpose of the Forex Market is to encourage international investment and trade
True
False
The euro is
a currency that is only traded offshore
a weighted average of the currencies of EU member countries
the currency of EU member countries
a currency, the value of which is determined by demand and supply
If you are trading forex with leverage, you will be able to....
Control more money with a smaller account
Lose more money when you make a loss
Make more money when you profit
All of the above
If you have been out of the country and went to another country using their money, you have participated in the Foreign Exchange.
True
False
What is the exchange rate?
The amount of money that is charged for having an account.
The rate for which the country decides they deserve for their money
The rate buyers pay in order to exchange their currency for different currency
The rate that you pay to go into the country
What play the greatest part in what the exchange rate is?
Political situations between countries
The Dow Jones
the overall health of a country
Supply and Demand
If there is a high demand for a currency, the rate will____:
increase
decrease
If the demand is low for a currency then the rate will _____.
Increase
Decrease
How do you profit in the Forex Market?
You buy a currency when it is low hold it till it's rate increases and sell it for a profit.
You wait till the demand is high and buy the currency then sell it when there is a large supply.
Buy currencies where the country is having big problems and wait for them to get better then sell.
It's all about the timing. You buy a currency and then wait until midnight to sell it.
If a government wants to increase the value of its currency, they can
not use the interest rate to reach this goal
decrease the interest rate
increase the interest rate
High supply causes _______ prices.
high
low
High demand causes _______ prices.
high
low
When there is a scarce supply of a given commodity, prices should _______.
rise
fall
Forex market NOT included?
Banks
Commercial companies
Forex brokers and investors
Government agencies
Which is NOT a function of the forex market?
Providing services to customers wishing to conduct international commercial transactions
Help rotate international investments, credit, other international financial transactions as well as exchanges between countries
Help shipping companies circulate goods faster
Is a place for the central bank to intervene when it is necessary to adjust the exchange rate in a direction that benefits the economy.
How many types of transaction traders can choose?
1
2
3
4
A forward exchange rate is a rate relating to
past interest rate
spot interest rate
future interest rate
currency exchange rate
Is it possible to have negative balance when trading?
Yes
No
