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Question #1
In general, if an interest rate increases the associated currency (1 P)
Increases
Decreases

Question #2
The lot size is 10,000. The leverage is 100:1. EUR/USD is trading at 1.3900/3902. If you buy 1 lot of EUR/USD, how much margin will you use in terms of U.S. dollar? (1 P)
$139.00
$139.02
$100.00

Question #3
Which Countries do NOT participate in the EURO? (1 P)
Sweden, The United Kingdom and Finland
Switzerland, The United Kingdom and Finland
Denmark, Switzerland and Austria
Denmark, Sweden and the United Kingdom

Question #4
Expansionary monetary policy by the Fed could include: (1 P)
Lowering the discount rate
Increasing margin requirements
Increasing required-reserve ratios
Selling government securities in the open market

Question #5
The three major controls of monetary policy are: (1 P)
Reserve ratios, the discount rate, and moral suasion.
Reserve ratios, the discount rate, and open-market operations
Margin regulations, the discount rate, and open-market operations
Margin regulations, moral suasion, and open-market operations

Question #6
The US trade deficit and government deficit are financed in large part by governments and institutions from other countries. What is the threat if the dollar continues to slide? (1 P)
Investors sell their dollars in order to cut their losses and this would drive the dollar still lower as demand decreases
Investors demand higher interest rates for new debt
Both of the above
Neither of the above

Question #7
If you want to limit your risk exposure a diversified portfolio is best? (1 P)
Incorrect
Correct

Question #8
The Forex Exchange Market is open 24 hours a day? (1 P)
Incorrect
Correct

Question #9
The Forex market is the largest market in the world? (1 P)
Incorrect
Correct

Question #10
The Forex Market is more risky than the Stock Market? (1 P)
Yes, the Forex Market is more risky.
With proper risk management the risk can be equal in both markets.
The Stock Market is more risky.

Question #11
The Forex Market trades over 1.5 trillion a day? (1 P)
Incorrect
Correct

Question #12
5 major currencies traded in the forex market are: US Dollar, Japanese Yen, BritishPound, Euro, and the Swiss Franc? (1 P)
Incorrect
Correct


 
 
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