Test “Economic Indicators and Their Impact on Currencies”

Test: Economic Indicators and Their Impact on Currencies

1 / 6

What can a trader use economic reports for?

a) To determine the strength of a country’s economy

b) To determine the strength of a country’s economy in a particular niche

c) To open short-term trades right at the news release

2 / 6

Why might the Central Bank raise interest rates?

a) To curb inflation

b) To stimulate economic growth

c) To fill the budget

d) Options A and C

3 / 6

How would a reduction in the interest rate affect mortgage holders?

a) Positively

b) Negatively

c) It wouldn’t affect them

d) They would have to pay additional fees

4 / 6

If the central bank lowers the base interest rate, how will this reflect on the country's currency?

a) The country’s currency rate will start to increase

b) The country’s currency rate will start to decrease

c) It won’t reflect on the currency rate at all

d) The rate will first decrease, then slowly start to rise

5 / 6

Why does a part of your income decrease during rapid inflation?

a) Because prices for goods and services increase during this period

b) Because prices for goods and services decrease during this period

c) Because interest rates are raised

d) Options B and C

6 / 6

When can the Central Bank be considered dovish?

a) When the bank lowers the base interest rate

b) When the bank increases the base interest rate

c) When the bank pays attention to inflation

d) When the bank is concerned about growth

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