FOREX Flashcards

1
Q

This is a virtual currency and example of which are bitcoin, degocoin and many others.

A

Cryptocurrency

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2
Q

Last November 29, 2021, the exchange rate between USD/PHP was P50.34. What does this mean?

A

You need P50.34 to exchange to a dollar

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3
Q

USD/PHP Reference rate: P50.50. You called you bank and gave you this exchange rate: 50.30 and 50.70, which of these two is the BID?

A

50.30

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4
Q

If you are given this exchange rate USD/CAD = 1.28, which currency is strong?

A

USD

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5
Q

This is the market where the currency is traded.

A

Foreign exchange market or Forex Market

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6
Q

Foreign exchange market or Forex Market

A

Exchange Rate

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7
Q

This refers to the collection of inves, ments tools such as stocks, bonds, ….. Cash and so on.

A

Portfolio

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8
Q

The rate of a foreign currency is determined by the law of supply and demand.

A

Float Rate

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9
Q

A PIP is equivalent to:

A

1/100th %

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10
Q

It is the conversion of one’s country’s currency into another.

A

Foreign Exchange

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11
Q

It is the trading of one currency for another.

A

Foreign exchange

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12
Q

Medium of exchange for goods and services.

A

Currency

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13
Q

A virtual currency that has no physical existence or government backing and are traded and stored in electronic form.

A

Bitcoin

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14
Q

Asset or item that is purchased with the hope that it will generate income or appreciate in value at some point in the future.

A

Investment

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15
Q

Results from using borrowed capital as a funding source when investing to expand the firm’s asset base and generate returns on risk capital.

A

Leverage

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16
Q

This refers to the amount of debt a firm uses to finance assets.

A

Leverage

17
Q

It is the largest, most liquid market in the world, with trillions of dollars changing hands everyday.

A

Foreign exchange market

18
Q

Has many available buyers and sellers.

A

Liquid market

19
Q

The opposite of liquid market is called.

A

Thin market or Illiquid market

20
Q

Controlling a country’s currency rate by tying it to another country’s currency or steering an asset’s prior to option expiration.

A

Pegging

21
Q

It is also a strategy deployed by buyers and sellers of call and put

A

Pegging

22
Q

Number of units of a foreign currency required to obtain one unit of domestic currency.

A

Exchange rate

23
Q

The reciprocal of this rate expresses the number of units in domestic currency required to obtain one unit of foreign currency.

A

Exchange rate

24
Q

Risk management strategy employed to offset losses in investments by taking an opposite position in a related asset.

A

Hedging

25
Q

A regime where the currency price of a nation is set by the FOREX market based r supply and demand relative to other currencies.

A

Floating Rate

26
Q
A