Core skill: interpret a quote like EUR/USD = 1.08 correctly, compute reciprocals and cross rates, and identify arbitrage when quotes are inconsistent.
| Currency | Symbol | Nickname | Controlled by | Key features |
|---|---|---|---|---|
| US Dollar | USD | Greenback | Federal Reserve (Fed) | Most traded; global reserve; safe-haven |
| Euro | EUR | Single Currency | European Central Bank (ECB) | Second most traded; Eurozone currency |
| Japanese Yen | JPY | Yen | Bank of Japan (BOJ) | Safe-haven; typically low rates |
| British Pound | GBP | Sterling | Bank of England (BOE) | Historically strong; can be volatile |
| Australian Dollar | AUD | Aussie | Reserve Bank of Australia (RBA) | Commodity-linked; carry-trade use |
| Canadian Dollar | CAD | Loonie | Bank of Canada (BOC) | Oil-linked; strong US trade ties |
| Swiss Franc | CHF | Swissy | Swiss National Bank (SNB) | Safe-haven; stable institutions |
| Norwegian Krone | NOK | Krone | Norges Bank | Energy exporter; oil/gas sensitivity |
In a currency pair BASE/QUOTE, the quote currency (counter currency) is the second currency. The exchange rate tells you how many units of the quote currency you need to exchange for 1 unit of the base currency. This is the standard definition used in professional FX quoting.
Example: if you know EUR/USD and USD/JPY, you can compute EUR/JPY.
Enter your answers. Use the reciprocal rule and cross-rate logic above.
| # | Question | Your answer | Check |
|---|
Each scenario computes the end value after following the suggested conversion path. If the end value exceeds the start, there is arbitrage.
Keep your official quiz in your LMS/jufinance system. This is only a fast comprehension check.