Test “Currency Correlation”

Test: Currency Correlation

1 / 6

What happens during negative correlation?

a) The price of two currencies moves in the same direction

b) The price of two currencies moves in opposite directions

c) The price of two currencies remains unchanged

d) Only the price of one currency changes

2 / 6

How does the risk for your trading account change depending on the correlation?

a) Risk increases

b) Risk decreases

c) Risk remains unchanged

3 / 6

Which of these statements is correct?

a) Correlated trades do not influence each other

b) Correlated trades complement each other

c) Correlated trades can negate each other

d) Correlated trades always act chaotically

4 / 6

What scale is used to measure correlation in the financial industry?

a) From +1 to -1

b) From 0 to -1

c) From +1 to 0

d) From +2 to -2

5 / 6

What does the chart below depict?

a) EUR/USD is dropping, AUD/USD is dropping, GBP/USD is dropping

b) EUR/USD is dropping, AUD/USD indicates a positive trend, GBP/USD also confirms this trend

c) EUR/USD is dropping, AUD/USD is dropping, GBP/USD indicates a positive trend

d) EUR/USD, AUD/USD, and GBP/USD are trading sideways

6 / 6

What does the chart below depict?

a) EUR/USD breaks the flat trend, AUD/USD also breaks the flat trend, GBP/USD moves in the opposite direction

b) EUR/USD, AUD/USD, and GBP/USD all break the flat trend

c) EUR/USD, AUD/USD, and GBP/USD do not break the flat trend

d) EUR/USD breaks the flat trend, AUD/USD moves in the opposite direction, GBP/USD does not break the flat trend

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