News and Events Impacting Forex MCQs

By: Prof. Dr. Fazal Rehman | Last updated: October 3, 2024

MCQs on News and Events Impacting Forex

1. What type of news is most likely to impact Forex markets? A) Celebrity gossip B) Economic data releases C) Weather forecasts D) Sports events Answer: B) Economic data releases 2. Which economic report is considered a key indicator for Forex trading? A) Quarterly earnings report B) Gross Domestic Product (GDP) C) Company press releases D) Movie reviews Answer: B) Gross Domestic Product (GDP) 3. What does an interest rate hike by a central bank generally do to the currency value? A) Decreases its value B) Increases its value C) Has no effect D) Only affects stock prices Answer: B) Increases its value 4. How can political events influence the Forex market? A) They have no impact B) They can cause uncertainty and volatility C) They only affect commodities D) They are only important during elections Answer: B) They can cause uncertainty and volatility 5. What is “economic news” in the context of Forex? A) News about company profits B) News related to a country’s economic indicators C) News about sports events D) News on celebrity lifestyles Answer: B) News related to a country’s economic indicators 6. Which of the following events might lead to a “risk-off” sentiment in Forex trading? A) Positive economic data B) Political instability C) Central bank interest rate cuts D) Strong corporate earnings Answer: B) Political instability 7. What is the effect of high inflation news on a currency? A) It usually strengthens the currency B) It usually weakens the currency C) It has no impact D) It only affects bond markets Answer: B) It usually weakens the currency 8. Which news event typically causes immediate movement in the Forex market? A) Quarterly company meetings B) Economic indicators release (e.g., non-farm payrolls) C) Social media trends D) Fashion shows Answer: B) Economic indicators release (e.g., non-farm payrolls) 9. What role do central banks play in Forex trading? A) They regulate the stock market only B) They influence currency values through monetary policy C) They only impact local markets D) They manage commodities Answer: B) They influence currency values through monetary policy 10. Which report would typically cause the most volatility in the Forex market? A) A report on tourism B) A government employment report C) A company sales report D) A weather report Answer: B) A government employment report 11. What is meant by the term “economic calendar” in Forex trading? A) A calendar that shows holidays B) A schedule of upcoming economic events and reports C) A calendar of birthdays D) A schedule of social events Answer: B) A schedule of upcoming economic events and reports 12. How can natural disasters affect the Forex market? A) They have no impact B) They can disrupt economic activity and lead to currency depreciation C) They only affect insurance stocks D) They create buying opportunities in Forex Answer: B) They can disrupt economic activity and lead to currency depreciation 13. What is “geopolitical risk”? A) The risk associated with weather changes B) The risk associated with political and economic instability in a region C) The risk related to company-specific events D) The risk of technological failures Answer: B) The risk associated with political and economic instability in a region 14. Why is it important for Forex traders to stay informed about news and events? A) It helps them to predict lottery numbers B) It aids in making informed trading decisions C) It is not necessary D) It only affects long-term investors Answer: B) It aids in making informed trading decisions 15. What impact does a strong jobs report typically have on a country’s currency? A) It weakens the currency B) It has no effect C) It strengthens the currency D) It only affects stocks Answer: C) It strengthens the currency
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