IF4 Exam Questions and Answers
1. 1 The world's largest foreign exchange trading center is
a) New York.
b) Tokyo.
c)London.
d) Hong Kong. Correct Answer: C
2. 2 The foreign exchange market closes
a) Never.
b) 4 Correct Answer: 00 p.m. EST (New York time).
c)4 Correct Answer: 00 p.m. GMT (London time).
d) 4 Correct Answer: 00 p.m. (Tokyo time). Correct Answer: A
3. 3 Most foreign exchange transactions are for
a) intervention by central banks.
b) interbank trades between international banks or nonbank dealers.
c)retail trade.
d) purchase of hard currencies. Correct Answer: B
4. 4 Most interbank trades are
a) speculative or arbitrage transactions.
b) simple order processing for the retail client.
c)overnight loans from one bank to another.
d) brokered by dealers. Correct Answer: A
5. 5 At the wholesale level
a) most trading takes place OTC between individuals on the floor of the
ex- change.
b) most trading takes place over the phone.
c)most trading flows over Reuters and EBS platforms.
d) most trading flows through specialized "broking" firms. Correct Answer:
C
6. 6 Intervention in the foreign exchange market is the process of
a) a central bank requiring the commercial banks of that country to trade
at a set price level.
b) commercial banks in different countries coordinating efforts in
order to stabilize one or more currencies.
,IF4 Exam Questions and Answers
c)a central bank buying or selling its currency in order to influence its
value.
1. 1 The world's largest foreign exchange trading center is
a) New York.
b) Tokyo.
c)London.
d) Hong Kong. Correct Answer: C
2. 2 The foreign exchange market closes
a) Never.
b) 4 Correct Answer: 00 p.m. EST (New York time).
c)4 Correct Answer: 00 p.m. GMT (London time).
d) 4 Correct Answer: 00 p.m. (Tokyo time). Correct Answer: A
3. 3 Most foreign exchange transactions are for
a) intervention by central banks.
b) interbank trades between international banks or nonbank dealers.
c)retail trade.
d) purchase of hard currencies. Correct Answer: B
4. 4 Most interbank trades are
a) speculative or arbitrage transactions.
b) simple order processing for the retail client.
c)overnight loans from one bank to another.
d) brokered by dealers. Correct Answer: A
5. 5 At the wholesale level
a) most trading takes place OTC between individuals on the floor of the
ex- change.
b) most trading takes place over the phone.
c)most trading flows over Reuters and EBS platforms.
d) most trading flows through specialized "broking" firms. Correct Answer:
C
6. 6 Intervention in the foreign exchange market is the process of
a) a central bank requiring the commercial banks of that country to trade
at a set price level.
b) commercial banks in different countries coordinating efforts in
order to stabilize one or more currencies.
,IF4 Exam Questions and Answers
c)a central bank buying or selling its currency in order to influence its
value.
