English_for_Finance_and_Banking

žTESTS

I. Choose the correct answer:

1. Exchange of currencies is possible if national currencies are:

a) changeable;

b) interchangeable;

c) not changeable.

2. The terms on which one currency will exchange against another are referred to as:

a) currency exchange;

b) unit of exchange;

c) rate of exchange.

3. Trading in the Foreign Exchange Market occurs:

a) 6 hours a day;

b) 12 hours a day;

c) 24 hours a day.

4. The Foreign Exchange Market consists of:

a) two major sectors;

b) three major sectors;

c) four major sectors.

5. More than half of all transactions in the Market are:

a) futures deals;

b) forward deals;

c) spot deals.

II. Match what statements are true and what are false. Results write to the table:

1. Exchange of currencies is possible if national currencies are not changeable.

2. The Foreign Exchange Market is the oldest financial market in existence.

3. Deals in the Market are concluded over telecommunications networks by different counterparties.

4. The exchange market has a centralized location.

5. The cost of transacting in the wholesale market is reflected in the bid-offer spread.

6. As prices are different in different markets, professional dealers may take advantage of it buying.

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