Bus Economics MCQs and Notes

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Bus Economics

Q 1. ________________ of goods results in demand for foreign currency.

(A) sale in inter-national market

(B) export

(D) import

Q 2. When the demand curve for foreign currency, intersects the supply curve, we get ________________ exchange rate.

(A) par

(B) discount

(D) premium

Q 3. The function of foreign exchange market that helps in clearing international transactions is known as ________________.

(A) speculation

(B) hedging

(D) credit

Q 4. ________________ is not a detect of flexible exchange rate.

(A) speculation

(B) structural unemployment

(D) discourages investments

Q 5. Forward market in foreign exchange refers to ________________ market.

(A) a long run

(B) a short run

(D) short and long run

Q 6. Portfolio foreign investment is included in ________________ account of BoP.

(A) capital

(B) trade

(D) current

Q 7. ________________ is not a direct measures to correct BoP disequilibrium.

(A) tariffs

(B) devaluation of exchange rate

(D) quotas

Q 8. The highest authority of WTO is ________________.

(A) the dispute settlement body

(B) the ministerial conference

(D) the general council

Q 9. Private transfers on India's current account include ________________.

(A) local withdrawal from nri rupee deposits

(B) foreign currency deposits

(D) portfolio investment

Q 10. In the past several years, India's net invisibles were in ________________

(A) surplus

(B) deficit

(D) unbalance