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Understanding Currency and Exchange Rates

Total questions: 1

Worksheet time: 13mins

Name
Class
Date

1-15.

Answer the questions below after watching the video

1.

What is the official money of a country called?

a)

Stock

b)

Bond

c)

Currency

d)

Commodity

2.

Who usually manages a country's currency?

a)

Local Banks

b)

Central Bank

c)

Private Companies

d)

International Monetary Fund

3.

Which currency is used by many EU member countries?

a)

US Dollar

b)

Euro

c)

Japanese Yen

d)

British Pound

4.

What is the most widely used currency in international transactions?

a)

British Pound

b)

Euro

c)

Japanese Yen

d)

US Dollar

5.

What does an exchange rate refer to?

a)

The value of gold

b)

The rate at which one currency can be exchanged for another

c)

The interest rate of a country

d)

The stock market index

6.

If one US dollar equals 1.05 euros, how many euros can you get for 10 US dollars?

a)

5 euros

b)

15 euros

c)

1.05 euros

d)

10.5 euros

7.

What determines the exchange rate between currencies?

a)

Stock Market

b)

Foreign Exchange Market

c)

Real Estate Market

d)

Commodity Market

8.

What happens to the value of a currency if it is in high demand?

a)

It becomes unstable

b)

It remains the same

c)

It falls

d)

It rises

9.

Which of the following can affect the foreign exchange rate?

a)

Population size

b)

Geographical location

c)

Economic conditions

d)

Weather conditions

10.

What is an example of a digital cryptocurrency?

a)

US Dollar

b)

Euro

c)

Bitcoin

d)

Japanese Yen

11.

How is Bitcoin created and managed?

a)

By private companies

b)

Electronically by a network of computers

c)

By banks

d)

By governments

12.

What determines Bitcoin's value?

a)

Interest rates

b)

Government policies

c)

Market demand

d)

Gold reserves

13.

Why is Bitcoin considered a high-risk investment?

a)

It is issued by governments

b)

Its value can fluctuate widely

c)

Its value is stable

d)

It is supported by tangible assets

14.

What role does currency play in the economy?

a)

It serves as a medium for exchange and a store of value

b)

It determines the population size

c)

It manages geographical locations

d)

It controls the weather

15.

Which of the following is NOT a function of currency?

a)

Determining population size

b)

Store of value

c)

Facilitating trade

d)

Medium for exchange