1

FX QUIZ

PREPARED BYR N HIRVE

CHIEF MANAGERCENTRAL BANK OF INDIA

MUMBAI

2

GBP/USD : If you go long on this pair, which currency are you actually buying & which currency are you actually selling?Buying GBP, Selling USD

Buying USD, Selling GBP

3

There are two quotes when looking at the price of a currency pair. The BID

is the price that you can buy the currency and the ASK is the price

that you can sell the currency. The difference between these two prices

is called the SPREAD.

TRUEFALSE

4

Match the following

PIP

A.The unit size of FX TradeB.The last decimal of a currency

quote. This is how you measure your profit or loss.

5

Match the following

LOT

A.The unit size of FX TradeB.The last decimal of a currency

quote. This is how you measure your profit or loss.

6

Match the followingA currency pair where neither of the

currencies include US Dollar

1.Base Currency2.BID Price3.Cross Currency4.ASK Price5.Spread6.Quote Currency/Terms Currency

7

Match the following

The first currency in a currency pair. This is a currency you either buy or sell

against the other currency.

1.Base Currency 2.BID Price3.Cross Currency4.ASK Price5.Spread6.Quote Currency/Terms Currency

8

Match the following

The second currency in a currency pair. This can also be called a “PIP currency”.

1.Base Currency2.BID Price3.Cross Currency4.ASK Price5.Spread6.Quote Currency/Terms Currency

9

Match the following

The difference between BID and ASK price

1.Base Currency2.BID Price3.Cross Currency4.ASK Price5.Spread6.Quote Currency/Terms Currency

10

Match the following

The price at which a trader can sell a specific currency

1.Base Currency2.BID Price3.Cross Currency4.ASK Price5.Spread6.Quote Currency/Terms Currency

11

In theory if a country or region’s economy is doing well then the corresponding currency should:

A.FallB.Stay at it’s current levelC.Rise

12

The type of analysis that deals with looking at historical price action ( charts) to determine

further direction of the market is called------------------- Analysis

13

The type of analysis that deals with looking at country’s or region’s current

economic state is called---------------- Analysis

14

Match the followingYou are approached by a Star Trading House to open an EEFC a/c. What is the maximum amount that can be credited

to such account:

1.50% of the amount of FX earned2.70% of the amount of FX earned3.100% of the amount of travellers’

cheques/bank drafts 4.100% of the amount of FX earned5.100% of the amount of FX notes

15

Match the following

The minimum contact size of the currency futures contract at the present in India’s

Currency futures market is:

1.USD 1,000 2.USD 10,0003.USD 1004.USD 1,100

16

Match the following

The world’s most widely traded currency is :

1.Euro 2.US Dollar3.Swiss Franc4.Japanese Yen

17

Match the following

FEDAI is the acronym for:

1.Foreign Exchange Distributor Association of India

2.Foreign Exchange Dealers Association of India

3.Foreign Exchange Distributor & Intermediaries Association of India

4.Foreign Exchange Distributor & Intermediaries

18

Match the followingThe forward rate for any two currencies is

generally a function of their spot rate and:

1.Trade Difference2.Difference in the exchange rate3.Interest Rate Differential between

them 4.Both 2 & 3

19

Match the followingIn exchange traded currency future

contracts, who acts as a central counter party to all trades?:

1.Government2.Regulator3.Market Maker 4.Clearing House

20

Match the following

The currency futures contract can have a maximum maturity of :

1. One Month2. Three Months3. Six Months 4. Twelve Months

21

An L/C covers a CIF delivery. The insurance certificate presented is for 112% of the CIF value. Would this be acceptable?

1.YES2.NO

22

An L/C states the beneficiary to be “Harbin Native Produce…”.

The invoices have been drawn by “Harbin National Native Produce…”.

Would this be acceptable?

1. Yes2. No

23

A beneficiary presents documents within the expiry date of the L/C but they contain discrepancies. The

beneficiary collects the offending documents for correction (leaving the rest with the bank) and in due course presents correct documents, however, in the interim the L/C has expired. Should the bank now

reject the documents for “Credit Expired”?

1.True2.False

24

An L/C calls for shipment by post and requires presentation of a Certificate of

Posting issued by a UK Post Office. As the latest date for shipment stated in

the L/C is a Sunday, banks will accept a Certificate of posting dated the next

working day on which the Post Office is open.

1.True2.False

25

A B/L must state how many originals have been issued

1. True2. False

26

A B/L must be issued in at least 3 originals

1. True2. False

27

Goods are liable to incur demurrage

1. as soon as the vessel arrives2. as soon as the goods are off

loaded onto the quayside3. When the goods have not been

collected by expiry of the ship’s lay time as determined by the custom of the port

28

THANK YOU