Test “Currency Cross-Rates”

Test: Currency Cross-Rates

1 / 6

What is a currency cross-rate?

a) A quick currency rate

b) A currency pair involving the US dollar

c) A currency pair that does not involve the US dollar

d) A long-term currency rate

2 / 6

What is an exotic currency pair?

a) A currency pair involving two currencies from small or emerging economies

b) A currency pair involving one currency from small or emerging economies

c) A currency pair that does not involve the US dollar

d) A currency pair involving a currency from exotic countries

3 / 6

Which statement is correct?

a) The US Dollar is the most used reserve currency

b) The Euro is the most used reserve currency

c) The British Pound is the most used reserve currency

d) The Ruble is the most used reserve currency

4 / 6

Which statement is correct?

a) Currency pairs are more liquid than cross pairs

b) Cross pairs are more liquid than currency pairs

c) Currency pairs and cross pairs have roughly equal liquidity

d) Both currency pairs and cross pairs are illiquid

5 / 6

In which case does the likelihood of a trend increase?

a) If demand for both currencies is high

b) If demand for one currency is high and for the other is low

c) If demand for both currencies is low

d) If the supply of one currency exceeds its demand

6 / 6

In which case does the demand for a country’s currency increase?

a) If its economic report is negative

b) If its economic report is positive

c) Prior to the release of an economic report

d) If the economic report of other countries is positive

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