Q. The price of one currency in terms of another is known as _________
✅ Correct Answer: (A)
Foreign exchange rate
Open Economy Macroeconomics MCQs with answers
Dear candidates you will find MCQ questions of 12th Class - Economics - Macroeconomics (Introductory Macroeconomics) | Chapter: Open Economy Macroeconomics here. Learn these questions and prepare yourself for coming examinations. You can check the right answer of any question by clicking the option or by clicking view answer button.
All subjects and chapters of 12th Class are listed below. You can select any subject and chapter below to learn mcq questions of that chapter and subject.
Q. The market where the national currencies are traded for one another is known as ________
✅ Correct Answer: (B)
Foreign exchange market
Q. Increase in the value of foreign commodities is known as _________
✅ Correct Answer: (B)
Devaluation
Q. Decrease in the value the foreign commodities is known as _________
✅ Correct Answer: (A)
Revaluation
Q. What is the cause of the devaluation of any country’s currency?
✅ Correct Answer: (D)
All of these
Q. The operation of daily nature in the foreign exchange market is known as ________
✅ Correct Answer: (A)
Spot market
Q. The operation of future delivery in the foreign exchange market is known as ________
✅ Correct Answer: (C)
Forward market
Q. Hybrid in management of fixed and flexible exchange rate is known as ________
✅ Correct Answer: (A)
Managed to float
Q. Trade of visible items between the countries is known as ________
✅ Correct Answer: (C)
Balance of Trade
Q. When the import and export of visible items are equal, the situation is known as _______
✅ Correct Answer: (A)
Balance of Trade
Q. The trade of visible and invisible items is known as _________
✅ Correct Answer: (A)
Balance of Payments
Q. Other things remaining unchanged, when in a country the price of foreign currency rises, national income is:
✅ Correct Answer: (A)
Likely to rise
Q. Other things remaining the same, when in a country the market price of foreign currency falls, national income is likely:
✅ Correct Answer: (B)
To fall
Q. Which one is a demerit of the fixed exchange rate?
✅ Correct Answer: (D)
All of the above
Q. Which one is a merit of the flexible exchange rate?
✅ Correct Answer: (D)
All of the above
Q. Which one is a demerit of the flexible exchange rate?
✅ Correct Answer: (D)
All of the above
Q. Which one is a source of the demand for foreign exchange?
✅ Correct Answer: (D)
All of these
Q. Foreign exchange is determined by:
✅ Correct Answer: (C)
Demand and supply in the foreign exchange market
Q. The foreign exchange rate is determined by:
✅ Correct Answer: (A)
Demand and Supply forces
Q. Balance of Trade =?
✅ Correct Answer: (A)
Export of Visible Items – Imports of Visible Items
Q. Which items are included in the Balance of Payments?
✅ Correct Answer: (D)
All the above
Q. Which one is the visible item of Balance of Payments?
✅ Correct Answer: (D)
All of these
Q. Which one is the invisible item of Balance of Payment?
✅ Correct Answer: (D)
All of these
Q. Which account is included in the composition of the Balance of Payments?
✅ Correct Answer: (C)
Both A and B
Q. The reason for the imbalance in the balance of payment is:
✅ Correct Answer: (D)
All of these
Q. Structure of balance of payment includes which account:
✅ Correct Answer: (C)
Both A and B
Q. Measures to improve the adverse balance of payment includes:
✅ Correct Answer: (D)
All of these
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