Question : Which of the following is an example of an economic indicator that can impact foreign exchange rates?
Option 1: Consumer confidence index
Option 2: Stock market index
Option 3: Political stability index
Option 4: Global oil prices
Correct Answer: Consumer confidence index
Solution : The correct answer is (a) Consumer confidence index.
An economic indicator that can impact foreign exchange rates is the consumer confidence index. The consumer confidence index measures the level of confidence consumers have in the overall state of the economy and their personal financial situations. It provides insights into consumer spending patterns, which are a significant component of a country's economic activity.
Question : Which of the following is an example of a technical factor that can impact foreign exchange rates?
Option 1: Government policies
Option 2: Economic indicators
Option 3: Market psychology
Option 4: Natural disasters
Question : Which of the following is an example of an economic factor that can influence foreign exchange rates?
Option 1: Weather conditions
Option 2: Sports events
Option 3: Unemployment rates
Option 4: Social media trends
Question : Which of the following factors can influence the demand for a country's currency in the foreign exchange market?
Option 1: Interest rates
Option 3: Political stability
Option 4: All of the above
Question : Which of the following factors can influence foreign exchange rates in the long run?
Option 1: Speculation in the foreign exchange market
Option 2: Political events and stability
Option 3: Short-term interest rate differentials
Option 4: Currency arbitrage
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