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FX QUIZ

This quiz will test your knowledge on forex trading, including currency pairs, quotes, pips, lots, and more. Test your skills and improve your understanding of the forex market!

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FX QUIZ

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  1. FX QUIZ PREPARED BY R N HIRVE CHIEF MANAGER CENTRAL BANK OF INDIA MUMBAI

  2. GBP/USD : If you go long on this pair, which currency are you actually buying & which currency are you actually selling? • Buying GBP, Selling USD • Buying USD, Selling GBP

  3. There are two quotes when looking at the price of a currency pair. The BID is the price that you can buy the currency and the ASK is the price that you can sell the currency. The difference between these two prices is called the SPREAD. • TRUE • FALSE

  4. Match the following • PIP • The unit size of FX Trade • The last decimal of a currency quote. This is how you measure your profit or loss.

  5. Match the following • LOT • The unit size of FX Trade • The last decimal of a currency quote. This is how you measure your profit or loss.

  6. Match the following • A currency pair where neither of the currencies include US Dollar • Base Currency • BID Price • Cross Currency • ASK Price • Spread • Quote Currency/Terms Currency

  7. Match the following • The first currency in a currency pair. This is a currency you either buy or sell against the other currency. • Base Currency • BID Price • Cross Currency • ASK Price • Spread • Quote Currency/Terms Currency

  8. Match the following • The second currency in a currency pair. This can also be called a “PIP currency”. • Base Currency • BID Price • Cross Currency • ASK Price • Spread • Quote Currency/Terms Currency

  9. Match the following • The difference between BID and ASK price • Base Currency • BID Price • Cross Currency • ASK Price • Spread • Quote Currency/Terms Currency

  10. Match the following • The price at which a trader can sell a specific currency • Base Currency • BID Price • Cross Currency • ASK Price • Spread • Quote Currency/Terms Currency

  11. In theory if a country or region’s economy is doing well then the corresponding currency should: • Fall • Stay at it’s current level • Rise

  12. The type of analysis that deals with looking at historical price action ( charts) to determine further direction of the market is called ------------------- Analysis

  13. The type of analysis that deals with looking at country’s or region’s current economic state is called ---------------- Analysis

  14. Match the following • You are approached by a Star Trading House to open an EEFC a/c. What is the maximum amount that can be credited to such account: • 50% of the amount of FX earned • 70% of the amount of FX earned • 100% of the amount of travellers’ cheques/bank drafts • 100% of the amount of FX earned • 100% of the amount of FX notes

  15. Match the following • The minimum contact size of the currency futures contract at the present in India’s Currency futures market is: • USD 1,000 • USD 10,000 • USD 100 • USD 1,100

  16. Match the following • The world’s most widely traded • currency is : • Euro • US Dollar • Swiss Franc • Japanese Yen

  17. Match the following • FEDAI is the acronym for: • Foreign Exchange Distributor Association of India • Foreign Exchange Dealers Association of India • Foreign Exchange Distributor & Intermediaries Association of India • Foreign Exchange Distributor & Intermediaries

  18. Match the following • The forward rate for any two currencies is generally a function of their spot rate and: • Trade Difference • Difference in the exchange rate • Interest Rate Differential between them • Both 2 & 3

  19. Match the following • In exchange traded currency future contracts, who acts as a central counter party to all trades?: • Government • Regulator • Market Maker • Clearing House

  20. Match the following • The currency futures contract can have a maximum maturity of : • One Month • Three Months • Six Months • Twelve Months

  21. An L/C covers a CIF delivery. The insurance certificate presented is for 112% of the CIF value. Would this be acceptable? • YES • NO

  22. An L/C states the beneficiary to be “Harbin Native Produce…”. • The invoices have been drawn by • “Harbin National Native Produce…”. Would this be acceptable? • Yes • No

  23. A beneficiary presents documents within the expiry date of the L/C but they contain discrepancies. The beneficiary collects the offending documents for correction (leaving the rest with the bank) and in due course presents correct documents, however, in the interim the L/C has expired. Should the bank now reject the documents for “Credit Expired”? • True • False

  24. An L/C calls for shipment by post and requires presentation of a Certificate of Posting issued by a UK Post Office. • As the latest date for shipment stated in the L/C is a Sunday, banks will accept a Certificate of posting dated the next working day on which the • Post Office is open. • True • False

  25. A B/L must state how many originals have been issued • True • False

  26. A B/L must be issued in at least 3 originals • True • False

  27. Goods are liable to incur demurrage • as soon as the vessel arrives • as soon as the goods are off loaded onto the quayside • When the goods have not been collected by expiry of the ship’s lay time as determined by the custom of the port

  28. THANK YOU

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