True or False Questions

Question 1

Market-If-Touched orders are entered on the same side of the market as limit orders.

Answer 1

True

Question 2

Margin requirements are the same for long and short positions.

Answer 2

True

Question 3

The settlement value is always the last trade.

Answer 3

False

Question 4

A GIB has not Net Cap requirement because its FCM satisfies it.

Answer 4

True

Question 5

While under investigation, a member firm may not continue doing business until the investigation is complete.

Answer 5

False

Question 6

Cash prices are above futures prices in a normal market.

Answer 6

False

Question 7

A liquidating market occurs when price and open interest are both going down.

Answer 7

True

Question 8

The US dollar has inverse relationships with foreign currencies and gold.

Answer 8

True

Question 9

A Head and Shoulders top is an indicator of a bullish market.

Answer 9

False

Question 10

Diversification can reduce systematic risk but cannot reduce systematic risk.

Answer 10

False

Question 11

A quote for EUR/USD represents the USD price of a unit of EUR.

Answer 11

True

Question 12

When activated, stop orders become market orders and stop limit orders become limit orders.

Answer 12

True