When a central bank is hiking the interest rate, this is?

A) Positive for its currency
B) negative for its currency
C) neutral for its currency
D) none of the above

The wrong answers are B) negative for its currency, C) neutral for its currency, and D) none of the above.

The correct answer it is A) positive for its currency. This is because money chases higher interest rates, especially in the bond markets. As interest rates rise, this creates more demand for the host country’s currency.

In Forex trading, “Fed” stands for?

A) Foreign-exchange
B) Federal Reserve of the United States
C) European Central Bank
D) Bank of Japan

The wrong answers are A) foreign-exchange, C) European Central Bank, and D) Bank of Japan.

The correct answer is B) Federal Reserve of the United States.

A trader should opt for?

A) A 5-digit account
B) a 4-digit account
C) a 6-digit account
D) none of the above

The wrong answers are B) 4-digit account, C) 6-digit account, and D) none of the above.

The correct answer is B) a 5-digit account. This gives the trader more precision on entries and exits.

A 5-digit account shows that?

A) The broker is a non-dealing desk
B) the broker is not a market maker
C) ECN or STP technology
D) all of the above

The wrong answers are A) the broker is a non-dealing desk, B) the broker is not a market maker, and C) ECN or STP technology.

The correct answer is D) all of the above.