Forex Test

1. Why do employment reports affect Forex?

They reveal labor market strength and can influence central bank policy They create pips They remove spreads They decide stock dividends

2. What is an exotic currency pair?

A pair with Bitcoin only A major currency paired with a smaller or emerging-market currency A pair with two stocks A pair that cannot be traded

3. What is a stop loss?

An order designed to limit losses A type of currency A guaranteed profit order A broker fee

4. Why do news events create volatility in Forex?

They make prices fixed They stop banks from trading They change expectations about economies and interest rates They remove spreads

5. Why does the Forex market exist?

Because stocks need dividends Because options need expiration dates Because crypto needs mining Because countries, businesses, banks, and travelers need to exchange currencies

6. What is a micro lot?

1,000 units of currency 1 unit only 10,000 units of currency 100,000 units of currency

7. Who participates in the Forex market?

Only crypto exchanges Banks, institutions, governments, businesses, and retail traders Only retail traders Only stock companies

8. What is a margin call?

A guaranteed profit alert A warning or action when account equity falls too low A phone call from a bank for savings A dividend payment

9. What is technical analysis in Forex?

Reading bank statements only Studying company earnings only Studying price charts and patterns Using passwords

10. What is a downtrend?

Price making lower highs and lower lows Price becoming risk-free Price making higher highs only Price staying at one level

11. Which of these is a major currency pair?

EUR/USD BTC/ETH Gold/Oil AAPL/MSFT

12. What does Forex stand for?

Financial Exchange Office Foreign Exchange Foreign Export Fixed Exchange Rate

13. What is the bid price?

The price at which you can sell The broker password The dividend amount The price at which you can buy

14. Which session overlap is often the most active?

Asian and weekend overlap Market close overlap London and New York overlap No overlap

15. What does going long mean in Forex?

Buying a currency pair expecting it to rise Selling a currency pair expecting it to fall Avoiding all trades Closing the broker account

16. Why are pips important?

They help measure profit, loss, and price movement They replace stop losses They guarantee profits They remove risk

17. What is a pip?

A stock certificate A crypto token A small unit of price movement in Forex A company dividend

18. What is leverage in Forex?

Borrowed trading power that allows control of a larger position A fixed exchange rate Guaranteed income A savings account

19. Why do traders prefer lower spreads?

Lower spreads guarantee profit Lower spreads remove risk Lower spreads reduce trading costs Lower spreads stop volatility

20. Which Forex pairs usually have the highest liquidity?

Pairs with no volume Unknown pairs Major pairs Exotic pairs only

21. What is a mini lot?

1,000,000 units of currency 10 units of currency 100,000 units of currency 10,000 units of currency

22. In EUR/USD, what is EUR called?

Pip currency Base currency Quote currency Margin currency

23. What is a currency pair?

Two currencies traded against each other Two crypto wallets Two futures contracts Two stocks in one order

24. What is slippage in Forex?

A type of lot size When execution price differs from expected price A currency pair A guaranteed profit

25. What is liquidity in Forex?

How many brokers exist How easily a currency pair can be bought or sold How many indicators are used How much water a country has