Interns - Week One - August

1. What was the impact of 'Brexit' on GBP/USD on the 24th June 2016?

It went up because of Pound strength

It went up because of Dollar weakness

It went down because of Pound weakness

No reaction

2. Who just won the French Elections?

Marine Le Pen

Francios Fillon

Francios Hollande

Emmanuel Macron

3. What is the inflation target for the majority of major developed countries?

0.5%

1%

2%

1.5%

4. A 'Hawk' is someone who prefers low rates? True or False?

False

True

Those who support higher rates are hawks, while those who favour lower interest rates are labelled doves.

Explanation

Those who support higher rates are hawks, while those who favour lower interest rates are labelled doves.

5. Which is the 2nd biggest economy in the world?

China

United Kingdom

Japan

The United States

6. A solid green line all the way across the Trading Ladder signifies the high of the day (HOD), what does a solid red line all the way across that ladder signify?

Moving Average

Resistance Level

Low of the Day

7. What was the reason for the large move here in GBP/USD?

September FED meeting

Brexit

Non-fam Payrolls

David Cameron's resignation

8. What are the Fibonacci percentage levels between 0% and 100%?

23.6, 38.2, 50, 61.8 and 76.4

22.4, 31.8, 50, 68.2 and 79.5

25, 50, 75

9. What is the relationship between Bond Yield and Price?

Positively correlated

Negatively correlated

No correlated

When price goes up, the yield goes down and vise versa.

Explanation

When price goes up, the yield goes down and vise versa.

10. There is a 'Risk On - Risk Off' relationship between the S&P 500 and the US 10-year government bond

Yes

No

11. What currency from the list below will have a positive correlation with Oil?

Canadian Dollar

Japanese Yen

British Pound

12. Which of the below are US Equity markets?

FTSE 100

NASDAQ

DAX 30

NIKKEI 225

S&P 500

DOW JONES

GOLD

Submit

13. Is Oil price nearer to $50 or $40?

$50

$40

14. In which year did the FED last raise interest rates?

2017

2002

2016

2015

15. Out of the following - which Moving Average gives more weight to the latest data

Simple Moving Average

Linear Weighted Moving Average

Exponential Moving Average

16. Should you always use a 'Stop Loss'?

Only when trading the news

Only when you have gone long in the market

Only if you hold the trade overnight

Yes

Always use a stop loss. It makes absolutely no sense not to use one. It protects you from incurring massive losses! Do not trade without one

Explanation

Always use a stop loss. It makes absolutely no sense not to use one. It protects you from incurring massive losses! Do not trade without one

17. If European Inflation Data came in a lot WORSE than expected what would you expect to see in EURUSD?

Up because of Euro strength

Down because of Euro Strength

Up because of Euro weakness

Down because of Euro weakness

18. Article 50 allows up to how many years of negotiations for post-exit terms?

6 months

2 years

1 year

1.5 years

After this period, the exiting country's relationship with the EU defaults to WTO rules, unless remaining member states unanimously agree to extend the negotiation period.

Explanation

After this period, the exiting country's relationship with the EU defaults to WTO rules, unless remaining member states unanimously agree to extend the negotiation period.

19. Which statement is true about the 'Classic Trade'

When entering the 'Classic', you enter just before the level breaks

As soon as the level breaks you enter

20. What could be the two reasons for the move lower in EUR/USD circled here?

Better than expected Euro data

Worse than expected US data

Better than expected US data

Worse than expected Euro data

Submit

21. When volume is low, the market is more likely to be in a ranging or momentum market?

Ranging

Momentum

22. Select the correct statements from below about Support and Resistance

Support is an area in the market where there have been more buyers than sellers

Resistance is an area in the market where there have been more buyers than sellers

Resistance is an area in the market where there have been more sellers than buyers

Support is an area in the market where there have been more sellers than buyers

When an area of Support is broken it turns into Resistance

When an area of Resistance is broken it turns into Support

Submit

23. Select four of the following that are considered 'safe haven' products.

Gold

Swiss Franc

Oil

Pound

Euro

Japanese Yen

US 10-year Government Bonds

S&P 500

Submit

24. Select the 'Safe Haven' products from the list below

Gold

T-Notes

Yen

S&P 500

Dow Jones

Nasdaq

Euro

Submit

25. A Trend Line has to touch how many points?

1

2

3

Remember a trend will be stronger on a longer time-frame, Minimum 3 touches required

Explanation

Remember a trend will be stronger on a longer time-frame, Minimum 3 touches required

26. A central bank says they will do a full scale Quantitative Easing programme. Which one of these following reactions is correct?

Currency Up, Bonds Up and Equities Down

Currency Up, Bonds Up and Equities Up

Currency Down, Bonds Down and Equities Down

Currency Down, Bonds Up and Equities Up

Currency Up, Bonds Down and Equities Up

27. Which statement is true about Prospect Theory?

A trader is conscious of the equal value of money over time

A trader will let profits run and book losses early

A trader's satisfaction in response to profits is on a diminishing scale

Losses are felt to the same degree as gains

28. The Eurozone Central Bank is running their Quantitative Easing programme until when?

December 2018

August 2017

December 2017

March 2018

29. Which of these is not a Central Bank Monetary Policy Tool?

Interest Rates

Communication

Quantitative Easing

Fiscal Policy

30. Often when we receive economic data, a number of figures are released in quick succession. Traders will be required to absorb large amounts of information and this can affect a trader's ability to react. In such cases as these, tick TWO of the following options which best reflect the correct trading procedure

Ignore prior movement

Wait until all data is released

Decide on which figure has the most importance

Trade the first figure

Submit

31. What reaction would you expect to see in Oil if both eur/usd and gbp/usd go down due to large dollar strength?

Oil would decrease in price

Oil would increase in price

Very little reaction

Oil price would deprecate in value due to the fact that you would now need less US dollars to buy the same amount of Oil.

Explanation

Oil price would deprecate in value due to the fact that you would now need less US dollars to buy the same amount of Oil.

32. Is Janet Yellen a Dove or a Hawk?

Dove

Hawk

33. Stops and Targets will go on the same side of the ladder?

True

False

34. Which one of these statements is not correct?

US 10-Year cash market open is 1:20pm

US equity cash market open is at 2:30pm (Unless clocks change in the UK)

Volume in Oil increases on average after 2pm

Futures close at 5pm

An exchange matrix will be sent to you after this exam. It is important to be aware of all of the ones that you trade.

Explanation

An exchange matrix will be sent to you after this exam. It is important to be aware of all of the ones that you trade.

35. What is correct in regards to counter trending? Tick two.

Traders should only hold the trade for a short period of time, as the trend is likely to continue

Traders should never counter trend

Traders should be aware of going against the majority and that there is higher risk

Traders can only counter trend in ranging markets

Submit

36. For the majority of 2017 - The Dollar has been strengthening or weakening?

Strenghtening

Weakening

37. In terms of a widespread global economic recession would the USD appreciate or depreciate in value against most other currencies?

Minimal effect

Appreciate

Depreciate

Due to the safe haven status of the Dollar - it would lead to people putting their money into the currency. Other safe havens at the moment include Gold, Japanese Yen and US 10-year Government bonds

Explanation

Due to the safe haven status of the Dollar - it would lead to people putting their money into the currency. Other safe havens at the moment include Gold, Japanese Yen and US 10-year Government bonds