#1
What is the most liquid currency in the world?
Euro
US Dollar
Japanese Yen
British Pound
#2
What is the currency of Brazil?
#3
What is the currency of China?
#4
Which country is associated with the currency Baht?
China
Thailand
South Korea
Vietnam
#5
What is the name of the currency in Turkey?
#6
What is the largest denomination of the Euro?
#7
Which currency is associated with the ticker symbol GBP?
US Dollar
Euro
British Pound
Japanese Yen
#8
What is the key determinant of the exchange rate in the long run according to purchasing power parity?
Inflation Rate
Interest Rate
GDP Growth Rate
Employment Rate
#9
What does the Big Mac Index measure?
The cost of a Big Mac
Purchasing power parity
Inflation rate
Foreign exchange rates
#10
What is the role of central banks in managing exchange rates?
Central banks do not play a role in managing exchange rates
Central banks directly control exchange rates through interventions
Central banks indirectly influence exchange rates through monetary policies
Central banks solely rely on market forces to determine exchange rates
#11
What does the term 'pegged exchange rate' refer to?
An exchange rate that is determined by market forces
An exchange rate that is fixed to the value of another currency or a basket of currencies
An exchange rate that fluctuates widely
An exchange rate that is set by international agreements
#12
Which country is associated with the currency Dirham?
Saudi Arabia
Morocco
United Arab Emirates
Oman
#13
What is the term for a situation where a country's currency is tied to the currency of another country?
Currency peg
Currency board
Managed float
Fixed exchange rate
#14
Which of the following countries is not a part of the European Union?
Germany
United Kingdom
France
Switzerland
#15
What is an example of a fixed exchange rate system?
Floating Rate System
Currency Board System
Managed Float System
Flexible Exchange Rate System
#16
How do currency depreciation and devaluation differ?
They are two different terms for the same concept
Currency depreciation occurs naturally, while devaluation is a deliberate action by governments
Currency devaluation occurs naturally, while depreciation is a deliberate action by governments
They both refer to an increase in the value of a currency
#17
What is the main purpose of using forward contracts in currency trading?
To speculate on future currency movements
To mitigate the risk of exchange rate fluctuations
To instantly convert one currency to another
To earn interest on foreign currency holdings
#18
Which theory suggests that exchange rates adjust to ensure that identical goods cost the same in different countries?
Purchasing Power Parity (PPP)
Interest Rate Parity (IRP)
International Fisher Effect (IFE)
Balassa-Samuelson Effect
#19
What is the function of a currency board?
To regulate money supply
To control exchange rates
To issue and maintain a country's currency
To facilitate international trade
#20
What is the term for a situation where a central bank actively trades in the foreign exchange market to influence the exchange rate?
Currency peg
Currency board
Managed float
Fixed exchange rate
#21
What is an example of a freely floating exchange rate system?
Currency Peg System
Fixed Exchange Rate System
Currency Board System
Managed Float System