Quizzes 61 to 64

Hiking the interest rates means?

A) Easing the monetary policy
B) tightening the monetary policy
C) everything stays the same
D) none of the above

The wrong answers include A) easing the monetary policy, C) everything stays the same, and D), none of the above.

The correct answer is B) tightening the monetary policy. By raising interest rates, central banks tighten the amount of money that is flowing in the economy, thereby slowing down growth.

If a central bank cuts the interest rate it is?

A) Positive for the currency
B) negative for the currency
C) neutral for the currency
D) none of the above

The wrong answers include A) positive for the currency, C) neutral for the currency, and D), none of the above.

The correct answer is B) negative for the currency. This is because the bond market will pay less to investors. This drives down the demand for the host country’s currency.

Before opening a live trading account, it is desirable to?

A) Trade on a demo account first
B) know the risks involved
C) know what moves the market
D) all of the above

The wrong answers include A), trade on a demo account first, B) know the risk involved, and C) know what moves the market.

The correct answer of course is D) all of the above.

In Forex trading, FOMC represents?

A) Federal Open Market Committee
B) Free Open Market Committee
C) For Open Market Committee
D) none of the above

The wrong answers are B) Free Open Market Committee, C) For Open Market Committee, and D), none of the above.

The correct answer is A) Federal Open Market Committee. The FOMC meets to make decisions involving interest rate hikes and cuts for the Federal Reserve.

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