Quizzes 25 to 28

An oscillator is?

A) Placed at the bottom of the chart
B) showing overbought and oversold levels
C) showing divergences
D) all of the above

Wrong answers include A) placed at the bottom of the chart, B) showing overbought and oversold levels, and C) showing divergences.

The correct answer is D) all of the above. Oscillators are used for various reasons and in different trading systems, and can show any and all of the points mentioned previously.

In a trading account, what is more important?

A) The equity in the trading account
B) the balance of the trading account
C) the margin level
D) all of the above

The wrong answers include B) the balance of the account, C) the margin level, and D), all of the above.

The correct answer is A) the equity in the account. The equity in the accounts not only keeps you in the market, but gives you the cushion necessary to have losses. By being able to withstand losses, the trader can realize gains later down the road. One of the most detrimental factors in a trading account is low equity.

The world’s reserve currency is?

A) The US dollar
B) the Euro
C) the Australian dollar
D) the Great Britain pound

the wrong answers are B) the Euro, C) the Australian dollar, and D) the British pound.

The correct answer is A) the US dollar. This is because it is used in most major transactions worldwide, including commodities.

The most important central bank in the world is?

A) Bank of Japan
B) Bank of England
C) European Central Bank
D) Federal Reserve of the United States

the wrong answers include A) Bank of Japan, B) Bank of England, and C) the European Central Bank.

The correct answer is D), the Federal Reserve. The Federal Reserve controls the world’s currency, and therefore has an enormous amount of power, influencing world markets.

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