Question 1

-------enables an investor to earn high returns while minimizing capital risks.

Accepted Answer

A) Liquidity 
B) Reserves 
C) Returns 
D) Leverage

Question 2

In the determination of the exchange value of a currency, the first currency of a currency pair is called -------.

Accepted Answer

A) Price currency 
B) Hard currency 
C) Base currency 
D) bitcoin

Question 3

According to the Purchasing Power Parity theory, the rate of exchange between the currencies of two countries is determined by-------

Accepted Answer

A) their relative price levels 
B) their import and export volumes 
C) their import and export values 
D) their relative capital movements

Exam 13: Understanding Foreign Exchange Market and Exchange Rate Systems: Part 2

-------enables an investor to earn high returns while minimizing capital risks.