Currency Pairs MCQs(Major, Minor, Exotic)

1. What are Major currency pairs?
A) Pairs that include the US dollar and another major currency
B) Pairs that include two exotic currencies
C) Pairs with low trading volume
D) Pairs that are less frequently traded
Answer: A) Pairs that include the US dollar and another major currency

2. Which of the following is NOT considered a Major currency pair?
A) EUR/USD
B) GBP/JPY
C) USD/CAD
D) AUD/NZD
Answer: D) AUD/NZD

3. Minor currency pairs are defined as:
A) Pairs that do not include the US dollar
B) Pairs with a low trading volume
C) Pairs with high volatility
D) Pairs that involve emerging market currencies
Answer: A) Pairs that do not include the US dollar

4. Which of the following is a Minor currency pair?
A) USD/CHF
B) AUD/JPY
C) USD/JPY
D) EUR/USD
Answer: B) AUD/JPY

5. Exotic currency pairs typically involve:
A) Two major currencies
B) A major currency and a currency from a developing country
C) Only European currencies
D) Only Asian currencies
Answer: B) A major currency and a currency from a developing country

6. Which of the following is an example of an Exotic currency pair?
A) USD/SEK
B) EUR/GBP
C) USD/HUF
D) GBP/USD
Answer: C) USD/HUF

7. What is one risk associated with trading Exotic currency pairs?
A) High liquidity
B) Lower volatility
C) Higher spreads and lower liquidity
D) Limited trading hours
Answer: C) Higher spreads and lower liquidity

8. The currency pair EUR/GBP consists of which currencies?
A) Euro and US Dollar
B) Euro and British Pound
C) Euro and Japanese Yen
D) Euro and Australian Dollar
Answer: B) Euro and British Pound

9. Which currency is NOT a part of any Major currency pairs?
A) Swiss Franc (CHF)
B) Japanese Yen (JPY)
C) South African Rand (ZAR)
D) British Pound (GBP)
Answer: C) South African Rand (ZAR)

10. How are currency pairs quoted?
A) In shares
B) In pips
C) In percentages
D) In dollars
Answer: B) In pips