Cards (42)

    • The Forex Market operates primarily through electronic networks
    • Match the market participant with their role:
      Banks ↔️ Trade currencies for themselves and clients
      Financial Institutions ↔️ Manage funds and hedge risks
      Corporations ↔️ Engage in currency transactions
      Central Banks ↔️ Influence currency values
    • Order the following roles of Forex Market participants:
      1️⃣ Banks trade currencies for themselves and clients
      2️⃣ Financial Institutions manage funds and hedge risks
      3️⃣ Individual Traders speculate on currency movements
      4️⃣ Corporations engage in currency transactions
      5️⃣ Central Banks intervene to influence values
    • Match the Forex Market participant with their role:
      Banks ↔️ Trade currencies
      Financial Institutions ↔️ Manage funds
      Individual Traders ↔️ Speculate on movements
      Corporations ↔️ Engage in transactions
    • The Forex Market is a marketplace where currencies are traded
    • The equilibrium exchange rate balances the demand for and supply of each currency
    • What does the Foreign Exchange Market facilitate by allowing currency conversion?
      International trade and investment
    • What is the definition of the Foreign Exchange Market (Forex Market)?
      Marketplace where currencies are traded
    • What is the primary function of the Forex Market?
      Facilitates international trade and investment
    • What role do banks play in the Forex Market?
      Trade currencies for themselves and their clients
    • Why do corporations engage in currency transactions in the Forex Market?
      For international business
    • The equilibrium exchange rate in the Forex Market occurs when demand and supply are balanced.

      True
    • What is a key advantage of a flexible exchange rate system?
      Monetary policy autonomy
    • What happens in a market order in the Forex Market?
      Executed immediately at current market price
    • Which market participants speculate on currency movements?
      Individual Traders
    • Financial institutions manage funds and hedge currency risks
    • Central Banks use the Forex Market to facilitate international trade.
      False
    • Order the roles of Forex Market participants:
      1️⃣ Banks trade currencies for themselves and clients
      2️⃣ Financial Institutions manage funds and hedge risks
      3️⃣ Individual Traders speculate on currency movements
      4️⃣ Corporations engage in currency transactions
      5️⃣ Central Banks intervene to influence values
    • What happens to the demand for domestic currency when exports increase?
      Demand increases
    • The Forex Market operates with a central regulatory body.
      False
    • The Forex Market is a centralized global marketplace.
      False
    • The Forex Market operates through a central exchange building.
      False
    • Financial institutions in the Forex Market manage funds and hedge currency risks
    • Central banks intervene in the Forex Market to influence currency values
    • Order the types of exchange rate systems from least to most flexible:
      1️⃣ Fixed
      2️⃣ Managed Float
      3️⃣ Flexible
    • Fixed exchange rate systems require large reserves to maintain stability.
      True
    • A limit order is executed at a specified price or better.

      True
    • What is the Foreign Exchange Market (Forex Market)?
      Decentralized global marketplace
    • The Forex Market has a central regulatory body.
      False
    • The Forex Market operates through a decentralized global electronic network.
      True
    • Which market participant intervenes to influence currency values?
      Central Banks
    • What is the structure of the Forex Market?
      Decentralized global electronic network
    • What are the key determinants of exchange rates in the Forex Market?
      Demand and supply of currencies
    • The interaction of demand and supply determines the equilibrium exchange rate.
    • The Forex Market is a marketplace where currencies are traded
    • Key participants in the Forex Market include banks, financial institutions, individual traders, corporations, and central banks
    • The Forex Market primarily operates through electronic networks
    • Individual traders speculate on currency movements in the Forex Market.

      True
    • The demand and supply of currencies are key determinants of exchange rates in the Forex Market.

      True
    • A fixed exchange rate system reduces uncertainty but limits monetary policy autonomy