CERTIFICATION EVALUATION 2026 QUESTIONS
WITH PRACTICE SOLUTION GRADED A+
◉ What is a recession. Answer: 2 consecutive quarters of negative
GDP growth
◉ Global reserve currency. Answer: the preferred currency, US
Dollar
◉ Major floating currency. Answer: leading 10 currencies
◉ Emerging floating currency. Answer: No easy to convert, low
liquidity
◉ Sentimental analysis. Answer: assumes investors can't always max
profits and min risks
◉ Yield differential. Answer: Difference in interest rates in
currencies
◉ Direct intervention (FX). Answer: Buy and sell own currencies
, ◉ Verbal intervention (FX). Answer: Warn market of buying and
selling own currencies
◉ IR intervention (FX). Answer: Adjust IR to increase investor
demand
◉ Counterparty-settlement risk. Answer: Not paying trader back
because of time zones
◉ Continuous linked settlement. Answer: removes settlement risk
◉ Spot price. Answer: price to exchange one currency for another
◉ Call. Answer: BUY
◉ Put. Answer: SELL
◉ Credit ratings. Answer: agencies rate bonds
◉ AAA. Answer: highest bond