Question 1
2 out of 2 points
Fixed exchange rates, also known as pegged exchange rates, occur when a
government or central bank ties the official exchange rate to another
country’s currency or the price of gold.
Selected Answer:
True
Question 2
2 out of 2 points
The FX swap of currency amounts is normally variable.
Selected Answer:
False
,Question 3
2 out of 2 points
Purchasing Power Parity has an impact on exchange rates and indicates the current
level of inflation of one currency against another.
Selected Answer:
True
Question 4
2 out of 2 points
Hedging is described as measures taken by a company or corporation to protect
itself from the loss that may occur because of fluctuations in the exchange
rate of currency.
Selected Answer:
True
Question 5
2 out of 2 points
, Since the world thrives to trade and does not have a uniformed international
currency, the exchange rate from one currency to another is determined by
(______) and (________) on a given day on the FX Market.
Selected Answer:
supply and demand
Question 6
0 out of 2 points
In the U.S., the Security Exchange Commission monitors activities of exchange
markets and OTC markets.
Selected Answer:
True
Question 7
The USD remains the world’s leading currency.
Selected Answer:
TRUE
Question 8