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Foreign Exchange Markets Multiple Choice Questions 1 PDF Download

Practice foreign exchange markets multiple choice questions (MCQs), finance test 1 for online exams. Practice foreign exchange transactions MCQs questions and answers on foreign exchange transactions, inflation rates with answers. Free foreign exchange markets quiz, online study guide has helping answer key with choices as greater volatility of rates , greater liquidity of assets , lesser volatility of rates and lesser liquidity of assets of multiple choice questions as larger fluctuations in portfolio value of foreign exchange of financial institutions leads to to test learning skills for viva exam preparation and job's interview questions. Study to learn foreign exchange transactions quiz questions with online learning MCQs for competitive exam preparation test.

MCQ on Foreign Exchange Markets Quiz PDF Download Test 1

MCQ. The larger fluctuations in portfolio value of foreign exchange of financial institutions leads to

  1. greater liquidity of assets
  2. greater volatility of rates
  3. lesser volatility of rates
  4. lesser liquidity of assets

B

MCQ. The services such as commercial trade transactions and positions in financial investments provided by financial institutions are classified as

  1. trade services
  2. investment services
  3. agent services
  4. commercial services

C

MCQ. For a foreign exchange of specific currency, the non-hedged position is classified as

  1. open position
  2. close position
  3. currency long position
  4. currency short position

A

MCQ. The position which came in to existence because of holding assets less than liabilities is considered as

  1. net surplus in assets
  2. net surplus in liabilities
  3. net long in currency
  4. net short in currency

D

MCQ. The theory according to which the difference between expected appreciation and foreign interest must be equal to domestic interest rate is called

  1. interest rate parity theorem
  2. appreciation parity theorem
  3. domestic parity theorem
  4. foreign interest parity theorem

A