Forex Test

1. What is a range-bound market?

Price moving in one direction forever Price moving between support and resistance A market that is closed A market without buyers

2. Which factor often strongly affects currency strength?

Company stock splits Interest rates NFT artwork Option expiration

3. Why does the Forex market exist?

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

4. What is a stop loss?

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

5. What does going short mean in Forex?

Opening a savings account Buying a currency pair expecting it to rise Selling a currency pair expecting it to fall Holding cash only

6. What does going long mean in Forex?

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

7. Why do employment reports affect Forex?

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

8. What is slippage in Forex?

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

9. What is a standard lot?

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

10. What is the spread in Forex?

The broker’s office location The difference between stocks and crypto The distance between countries The difference between the bid and ask price

11. Why do central bank decisions matter?

They stop all trading They can affect interest rates and currency value They control stock dividends They create crypto wallets

12. What does EUR/USD show?

The price of gold How many euros are in one dollar only The U.S. stock market How many U.S. dollars are needed for one euro

13. What is resistance?

A wallet backup A currency symbol A price area where selling pressure may appear A lot size

14. What is a minor currency pair?

A pair of major currencies that does not include USD A stock pair A crypto pair A pair that includes only USD

15. What is technical analysis in Forex?

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

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

Quote currency Lot currency Base currency Spread currency

17. What is the bid price?

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

18. What is a currency pair?

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

19. What is leverage in Forex?

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

20. Why is leverage risky?

It stops price movement It removes margin calls It can amplify both profits and losses It guarantees profits

21. Why is position sizing important?

It guarantees winning trades It removes spreads It changes the currency pair It controls how much money is at risk on a trade

22. What is a pip?

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

23. Which session overlap is often the most active?

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

24. What is fundamental analysis in Forex?

Only drawing lines on charts Studying economic factors that affect currency values Checking crypto wallets Counting social media followers

25. What is the ask price?

The price at which you can buy The trading session The price at which you can sell The interest rate only