Quizz | Swissquote

1. Which of the following sentences are correct about fundamental analysis?

It tries to predict the future price of an asset examining past price patterns.It is based on certain statistical settings with certain rules related to buying and selling different securities.It represents a passive way to buy basket of stocks in order to replicate the market.It tries to decide what a currency or stock should cost, and compares this to the current market price.

Justification: Fundamental analysis is a method of measuring a security’s intrinsic value (stocks or bonds) by examining related economic and financial factors, such as P/E ratio, cash flows, dividends and expected growth of a company.

2. Please complete the following sentence: ____________ is the true value of a share or currency.

Intrinsic valueMarket priceReal priceCurrency value

Justification: The intrinsic value is a measure of what an asset is worth.

3. Which of the following factors are irrelevant for trading currencies?

Interest ratesEconomic announcementsFinancial reportInflation

Justification: Unlike equities, for currencies, there is no forecast of quarterly results to analyse. Instead, traders analyse anything that affects the value of a currency.