FX PREPARATION TEST 2026 QUESTIONS
AND CORRECT ANSWERS GRADED A+
● FX Module (in kyriba). Answer: The FX module helps companies
manage their exposure to currency risks, automate FX transaction
workflows, and gain visibility into their foreign currency positions,
Typically used by treasury teams who deal with multiple currencies.
● Foreign Exchange. Answer: The process of converting one currency
into another (e.g., USD to EUR).
● FX Risk. Answer: Companies operating in multiple currencies can
lose or gain money as exchange rates change. Managing this risk is
crucial.
● FX Transactions. Answer: Common types include Spot, Forward,
Swap, and Option contracts.
● Why Does FX Exist?. Answer: International Business: Companies that
buy/sell goods and services across borders need to pay and receive funds
in different currencies.
Travel: Tourists exchange their home currency for the currency of the
country they are visiting.
Investments: Investors and governments move money between
countries, needing to convert currencies.
, ● Currency Pair. Answer: Currencies are always traded in pairs (e.g.,
EUR/USD means exchanging euros for US dollars).
● Base Currency. Answer: The first currency in the pair (e.g., EUR in
EUR/USD).
● Quote Currency. Answer: The second currency in the pair (e.g., USD
in EUR/USD).
● Exchange Rate. Answer: The price of one currency in terms of
another.
● Spot Transaction. Answer: Immediate exchange of currencies at the
current rate ("spot rate").
● Forward Contract. Answer: Agreement to exchange currencies at a
future date, using a rate agreed on today.
● Option. Answer: The right (but not the obligation) to exchange
currency at a set rate in the future.
● FX Risks. Answer: - Transaction Risk: The risk that exchange rates
move between the time a deal is made and when it's settled.
AND CORRECT ANSWERS GRADED A+
● FX Module (in kyriba). Answer: The FX module helps companies
manage their exposure to currency risks, automate FX transaction
workflows, and gain visibility into their foreign currency positions,
Typically used by treasury teams who deal with multiple currencies.
● Foreign Exchange. Answer: The process of converting one currency
into another (e.g., USD to EUR).
● FX Risk. Answer: Companies operating in multiple currencies can
lose or gain money as exchange rates change. Managing this risk is
crucial.
● FX Transactions. Answer: Common types include Spot, Forward,
Swap, and Option contracts.
● Why Does FX Exist?. Answer: International Business: Companies that
buy/sell goods and services across borders need to pay and receive funds
in different currencies.
Travel: Tourists exchange their home currency for the currency of the
country they are visiting.
Investments: Investors and governments move money between
countries, needing to convert currencies.
, ● Currency Pair. Answer: Currencies are always traded in pairs (e.g.,
EUR/USD means exchanging euros for US dollars).
● Base Currency. Answer: The first currency in the pair (e.g., EUR in
EUR/USD).
● Quote Currency. Answer: The second currency in the pair (e.g., USD
in EUR/USD).
● Exchange Rate. Answer: The price of one currency in terms of
another.
● Spot Transaction. Answer: Immediate exchange of currencies at the
current rate ("spot rate").
● Forward Contract. Answer: Agreement to exchange currencies at a
future date, using a rate agreed on today.
● Option. Answer: The right (but not the obligation) to exchange
currency at a set rate in the future.
● FX Risks. Answer: - Transaction Risk: The risk that exchange rates
move between the time a deal is made and when it's settled.
