Understanding Currency and Exchange Rates

What is the official money of a country called?

• Stock

• Bond

• Currency

• Commodity

Who usually manages a country's currency?

• Local Banks

• Central Bank

• Private Companies

• International Monetary Fund

Which currency is used by many EU member countries?

• US Dollar

• Euro

• Japanese Yen

• British Pound

What is the most widely used currency in international transactions?

• British Pound

• Euro

• Japanese Yen

• US Dollar

What does an exchange rate refer to?

• The value of gold

• The rate at which one currency can be exchanged for another

• The interest rate of a country

• The stock market index

If one US dollar equals 1.05 euros, how many euros can you get for 10 US dollars?

• 5 euros

• 15 euros

• 1.05 euros

• 10.5 euros

What determines the exchange rate between currencies?

• Stock Market

• Foreign Exchange Market

• Real Estate Market

• Commodity Market

What happens to the value of a currency if it is in high demand?

• It becomes unstable

• It remains the same

• It falls

• It rises

Which of the following can affect the foreign exchange rate?

• Population size

• Geographical location

• Economic conditions

• Weather conditions

What is an example of a digital cryptocurrency?

• US Dollar

• Euro

• Bitcoin

• Japanese Yen