PASAR QUIZZZZ

Question 1

trading of one currency for another

Answer 1

FOREIGN EXCHANGE

Question 2

largest and most liquid market

Answer 2

FOREX MARKET

Question 3

foreign exchange transaction takes place on the foreign exchange market

Answer 3

FOREX MARKET

Question 4

decentralized network

Answer 4

FOREX MARKET

Question 5

market determines the value of majority currencies

Answer 5

EXCHANGE RATES

Question 6

FOREIGN EXCHANGE WORKS

Answer 6

market determines the value of majority currencies
involve trading currency on the foreign exchange market

Question 7

exert significant impact on forex market

Answer 7

POLITICAL CONDITION

Question 7

political instability & political conflicts affect negatively the strength of currency

Answer 7

POLITICAL CONDITION

Question 7

FACTORS THAT AFFECT FOREIGN EXCHANGE RATES

Answer 7

ECONOMIC CONDITIONS
POLITICAL CONDITIONS
PSYCHOLOGICAL CONDITIONS

Question 7

FOREX MARKET CURRENCIES TRADE IN LOTS

Answer 7

MICRO (1,000)
MINI (10,000)
STANDARD LOTS (100,000)

Question 7

include government’s economic policies, trade balances, inflation, & economic growth outlook

Answer 7

ECONOMIC CONDITION

Question 8

psychology of forex market participants influence exchange rates

Answer 8

PSYCHOLOGICAL CONDITION

Question 9

forex, FX, currency market

Answer 9

FOREIGN EXCHANGE MARKET

Question 9

able to sell, exchange & speculate on currencies
original financial market

Answer 9

FOREIGN EXCHANGE MARKET

Question 9

global marketplace determine exchange rate for currencies around the world

Answer 9

OVER-THE-COUNTER

Question 10

FOREIGN EXCHANGE MARKETS ARE MADE UP OF

Answer 10

banks
forex dealers
commercial companies
central banks
investment management firms
hedge funds
retail forex dealers
investors

Question 11

owned by central banks
trading in forex market averaged of 6.6 trillion

Answer 11

BANK OF INERNATIONAL SETTLEMENTS (BIS)

Question 12

always traded in pairs

Answer 12

CURRENCIES

Question 12

value of one currencies in that pair is relative to the value of another

Answer 12

CURRENCIES

Question 12

THE VALUE OF A COUNTRY’S CURRENCY DEFENDS ON

Answer 12

FREE FLOAT CURRENCY
FIXED FLOAT CURRENCY

Question 13

country’s governing body sets its currency relative value to other countries

Answer 13

FIXED FLOAT CURRENCY

Question 13

relative value determined by free market forces

Answer 13

FREE FLOAT CURRENCY

Question 14

BENEFITS OF USING FOREX MARKET

Answer 14

> fewer rules
no clearing houses & no central bodies to oversee the forex market
most investors won’t pay traditional fees
market is open 24 hours (trade anytime & no cut off time)
worried about risk & reward, you can get in and get out anytime you want and you can buy as much currency as you can afford

Question 15

buy or sell currencies anytime during the day

Answer 15

OPEN 24 HOURS

Question 15

DIFFERENCES IN THE FOREX MARKET

Answer 15

THE SPOT MARKET THE FORWARD MARKET THE FUTURES MARKET

Question 15

very volatile spot for most currencies is two days

Answer 15

THE SPOT MARKET

Question 16

THE MOST LIQUID TRADING PAIRS

Answer 16

EUR/USD USD/JPY GPR/USD

Question 17

prices established on the trade date, but money is exchanged on value date

Answer 17

THE SPOT MARKET

Question 17

trade that settles further in the future than spot

Answer 17

THE FORWARD MARKET

Question 18

combination of spot rate (add/minus)

Answer 18

FORWARD PRICE

Question 18

tailor-made

Answer 18

FORWARD CONTRACT

Question 19

future transactions similar to forward than settles later than spot deal

Answer 19

THE FUTURES MARKET

Question 20

another way to participate in forex market

Answer 20

FORWARDS & FUTURE

Question 21

approach forecasts that exchange rate will change due to offset prices changes due to inflation

Answer 21

PURCHASING POWER PARITY

Question 21

indoctrination in most economic textbook

Answer 21

PURCHASING POWER PARITY

Question 21

THREE COMMON WAYS TO FORECAST CURRENCY EXCHANGE RATES

Answer 21

PURCHASING POWER PARITY RELATIVE ECONOMIC STRENGTH ECONOMETRIC MODELS OF FORECASTING EXCHANGE RATES

Question 22

approach looks at the strength of economic growth in different countries to forecast direction of exchange rate

Answer 22

RELATIVE ECONOMIC STRENGTH

Question 22

gathering factors might affect currency movements

Answer 22

ECONOMETRIC MODELS OF FORECASTING EXCHANGE RATES

Question 23

compares level of economic growth across countries

Answer 23

RELATIVE ECONOMIC STRENGTH

Question 24

most complex & time consuming approach

Answer 24

ECONOMETRIC MODELS OF FORECASTING EXCHANGE RATES

Question 25

forecast help broker and business make better decision

Answer 25

CURRENCT EXCHANGE RATE