Forex Trading Currency Pairs 2

Question 1

In the currency pair USD/JPY, which currency is the quote currency?

Accepted Answer

JPY

Answer

The quote currency (counter currency) is the second currency in a pair, which is JPY in USD/JPY.

Question 2

Which of the following is considered an exotic currency pair?

Accepted Answer

USD/TRY

Answer

USD/TRY (US Dollar/Turkish Lira) is an exotic pair because it involves an emerging market currency.

Question 3

What does a rising EUR/USD rate indicate?

Accepted Answer

EUR is strengthening against USD

Answer

A rising EUR/USD rate means more USD is needed to buy one EUR, indicating EUR appreciation relative to USD.

Question 4

Which currency pair is known as 'Cable'?

Accepted Answer

GBP/USD

Answer

GBP/USD is nicknamed 'Cable' due to the transatlantic telegraph cable used to transmit exchange rates in the 19th century.

Question 5

If USD/CHF is quoted at 0.9200, how many Swiss Francs do you receive for 1 US Dollar?

Accepted Answer

0.9200

Answer

USD/CHF at 0.9200 means 1 USD buys 0.9200 CHF.

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