xChief Academy Trading and Financial Markets Knowledge Quiz Welcome to xChief Academy Placement Quiz ! 1. Which is the largest financial market in the world? The American stock market The cryptocurrency market Forex The global stock market Which currency comes first in a currency pair? Base currency Quote currency Cross currency Unconventional currency 3. Which currency pair is not a major currency? NZD/USD EUR/GBP EUR/USD USD/GPY 4. What is the difference between the bid and ask price called? Spread Leverage effect Margin Free Margin 5. More than... of transactions in the Forex market involve the US dollar (USD). 80% 85% 30% 65% 6. What is the second most traded currency in the world? JPY EUR GBP CHF 7. Which decimal digit does each pip in a currency pair indicate? The second digit The third digit The fourth digit The fifth digit 8. What is the fee you pay if you keep the position open and carry it over to the next day? Margin Call Swap Spread Commission 9. Margin trading is when... You open a position based on your account balance. You have the option of opening a position with a higher initial capital than your account balance. You have the option of opening a position with a lower initial capital than your account balance. b and c 10. What does the term "Stop Loss" mean? Open Position Pending Order Profit limit Loss limit 11. What does "Bid" mean in Forex? The sell offer price The buy offer price The price at which you can sell the second currency The price at which you can buy the base currency 12. What are the working hours of the Forex market? From Saturday morning to Thursday From Monday at 8:00 am to Friday (GMT+3.30) From Monday at 1:30 am to Saturday at 01:00 am (GMT+3.30) From Monday at 00:00 to Saturday at 00:00 (GMT+3.30) 13. Which are the best days to trade on the market? From Tuesday to Thursday Monday and Friday From Friday to Sunday From Sunday to Tuesday 14. When is the peak trading time on the market? When the London and New York sessions overlap During the New York session When the market is opening When the market is closing 15. The London session is characterized by... High volatility High spread Low liquidity High slippage 16. Identify the Japanese candlestick pattern in which the opening and closing prices are very close to each other or similar. Doji Spinning top Piercing line Dark cloud cover 17. What is fundamental analysis? The study and use of harmonic patterns Using economic and political reports to predict future price trends Use of indicators and price charts Chart forecasting based on market trends 18. Which of the following statements does not refer to the fundamental analysis? Paul's speech An increase in the price of oil due to a reduction in supply The breaking of an important resistance level for gold The rise in the price of the Euro due to the increase in interest rates in the eurozone 19. Which statement is false? The contractionary policy of governments leads to a rise in interest rates and a fall in inflation. An increase in interest rates leads to a fall in the value of the currency. An increase in the supply/demand ratio leads to an increase in inflation. An increase in the bond yield leads to an increase in the value of the currency. 20. Which sentence is incorrect? The account balance is not equal to the equity of the account. The total balance of the account plus the amount of profit/loss and bonuses/credits received from the broker equals equity. For a buy order, your order is opened at the bid price. For a sell order, your order is opened at the bid price. 21. If the EUR/USD rate rises from 13382 to 1.3393, how many points (pips) has the rate moved? 11 pips 110 pips 1.1 pips 10 pips 22. If you deposit $1,500 into your trading account, receive a Welcome Bonus of $500 and have an open trade with a profit of $300, which statement about your trading account is false? Your account balance is $2000 Your account equity is $2,300 Your account balance is $1,500 In this case, all or part of the balance cannot be withdrawn. 23. Which of these numbers are important in the Ichimoku indicator? 9, 30, 52 9, 26, 52 9, 13, 26 9, 27, 36 24. If the RSI oscillator is below 30, this generally means... Overbought Oversold Bullish market Bearish market 25. What does the appearance of a long candle in the same direction as the current trend mean when analyzing the price chart with a candlestick? Reversal potential Increasing movement Continuing trend Price stability Email Your quiz time is about to finish. Few seconds left. Time is Up!
