1. Which exchange-rate system does not require monetary reserves for official exchange-rate intervention?
A. Floating exchange rates
B. Pegged exchange rates
C. Managed floating exchange rates
D. Dual exchange rates
2. The Euro is _______
A. the currency of EU member countries.
B. a weighted average of the currencies of EU member countries.
C. a currency, the value of which is determined by demand and supply.
D. a currency that is only traded offshore.
3. Which of the following is a function of money?
A. a unit of account
B. a store of value
C. medium of exchange
D. All of the above are correct
4. Treasury Bonds are
A. Both a store of value and a medium of exchange.
B. A store of value, but not a medium of exchange
C. A medium of exchange, but not a store of value.
D. Neither a store of value nor a medium of exchange
5. The price that the buyer of a call option pays to acquire the option is called the
A. strike price
B. exercise price
C. execution price
Answers: 1 (A), 2 (C), 3 (D), 4 (B), 5 (D)
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