Welcome to the quiz

  • Take the quiz as many times as you like. We'll record your best effort if you log in or sign up for IG Academy
  • There's no time limit, so you can spend as long as you like on each question.
Retake the quiz More courses
Question 1 of 10

For the currency pair USD/JPY, a pip represents a one-digit movement in which decimal place?

  • A First
  • B Second
  • C Third
  • D Fourth

Explanation

In most cases, when the Japanese yen (JPY) is the counter currency, the second decimal place is the one to watch.

Next
Question 2 of 10

'Company QER is currently worth $5,000,000 and 100,000 shares have been issued.. How much is one share worth in dollars?

  • A $5
  • B $20
  • C $50
  • D $200

Explanation

The value of one share is the total company value divided by the number of shares issued. $5,000,000 ÷ 100,000 = $50.

Previous
Next
Question 3 of 10

Index DEF is capitalization-weighted and represents the value of the following three stocks: - Company D has an equity price of $5 with 200 shares issued - Company E has an equity price of $2 with 1000 shares issued - Company F has an equity price of $4 with 500 shares issued What is the value of Index DEF in dollars?

  • A $3000
  • B $400
  • C $4000
  • D $5000

Explanation

A capitalization-weighted index takes the size of each company into account when calculating the value of the index as a whole:
($5 x 200) + ($2 x 1000) + ($4 x 500)
= $1000 + $2000 + $2000
= $5000

Previous
Next
Question 4 of 10

Which of the following isn't a commodity futures exchange?

  • A London International Financial Futures and Options Exchange (LIFFE)
  • B London Metal Exchange
  • C OMX Nordic Exchange
  • D New York Mercantile Exchange

Explanation

OMX Nordic Exchange is a stock exchange group based in Stockholm.

Previous
Next
Question 5 of 10

Match the stock index to its corresponding country:

Clear

Explanation

FTSE 100 -> UK
DAX -> Germany
CAC 40 -> France
IBEX 35 -> Spain
Nikkei 225 -> Japan

Previous
Next
Question 6 of 10

Match the following stock exchanges to their respective country:

Clear

Explanation

SIX -> Switzerland
LSE -> UK
NASDAQ -> USA
ASX -> Australia
TSX -> Canada

Previous
Next
Question 7 of 10

Which of the following would be classed as 'hard' commodities?

Please select all answers that apply
  • Gold
  • Nickel
  • Barley
  • Heating Oil

Explanation

Hard commodities are generally mined from the ground, or taken from other natural resources, while barley is a farmed crop, so is classed as a 'soft' or 'agricultural' commodity.

Previous
Next
Question 8 of 10

You decide to buy A$10,000 of AUD/USD at 0.74000, which costs you $7400. A few weeks later the sell price stands at 0.72000. If you close your position at 0.72000, how much profit/loss will you make in USD (not counting any charges or commission payments)?

  • A $200 loss
  • B $200 profit
  • C $2000 profit
  • D $2000 loss

Explanation

By buying this currency pair you expected the Australian dollar to strengthen against the US dollar. However, in this scenario it got weaker, with you paying $7400 to open the trade, but selling for $7200. This cost you $200.

Previous
Next
Question 9 of 10

The size of one contract of Brent Crude oil is 1000 barrels. Let's say it's currently trading at $70 per barrel, and you decide to buy three contracts costing you $210,000 ($70 x 3000 barrels). Later, the price of Brent Crude is listed at $50 per barrel and you decide to close your position. How much profit/loss have you made (ignoring any charges or commission payments)?

  • A $60,000 profit
  • B $6000 loss
  • C $60,000 loss
  • D $600,000 profit

Explanation

You paid $210,000 but could only sell for $150,000. That means you'd have lost $60,000 in total ($210,000 - $150,000).

Previous
Next
Question 10 of 10

Forex is traded in standard lots. How many units of currency does a standard lot represent?

  • A 1
  • B 10,000
  • C 100,000
  • D 10

Explanation

A standard lot is 100,000 units of currency. A mini lot represents 10,000 units, while a micro lot represents 1000.

Previous
See answers