Business Economics MCQs and Notes

P

Priyanka Tomar • 35.28K Points
Coach

Q 1. India has adipted _ _ _ Exchange rate system.

(A) Fixed
(B) Flexible
(C) Managed
(D) Stable

R

Rakesh Kumar • 28.44K Points
Instructor II

Q 2. Flexible exchange rate system, the exchange rate is determined by _     

(A) Market forces
(B) Central Bank
(C) commercial bank
(D) Scheduled Bank

R

Rakesh Kumar • 28.44K Points
Instructor II

Q 3. Under managed float, the central bank of a nation intervenes to_ _ foreign currency.

(A) only purchase
(B) only sell
(C) purchase and sell
(D) auction

R

Rakesh Kumar • 28.44K Points
Instructor II

Q 4. Under IMF, the exchange rate system was     _                 

(A) gold standard
(B) currency board system
(C) dollarization
(D) EURO

A

Admin • 36.96K Points
Coach

Q 5. Purchasing Power Parity Theory considers that goods in different countries are _         

(A) differential
(B) identical
(C) superior
(D) inferior

P

Priyanka Tomar • 35.28K Points
Coach

Q 6. Exchange rate between two currencies is based on     _ __

(A) purchasing power of two currencies
(B) economic development of the two nation
(C) political stability in the two countries
(D) export - import in two countries

P

Priyanka Tomar • 35.28K Points
Coach

Q 7. Which of the following is not an assumption of the Purchasing Power Parity theory? _                      

(A) There are no trade barriers between countries
(B) The price index for each of the two countries must be comprised of the same basket of goods
(C) All the prices should be indexed to the same year
(D) Changes in the exchange rate changes internal price level

V

Vijay Sangwan • 28.62K Points
Instructor II

Q 8. According to the Purchasing Power Parity theory, the rate of exchange between the currencies of two countries is determined by_                      

(A) their relative price levels
(B) their import and export volumes
(C) their import and export values
(D) their relative capital movements

V

Vijay Sangwan • 28.62K Points
Instructor II

Q 9. Transaction in which currencies to be exchanged the next day of the transaction is known as

(A) value today
(B) ready transaction
(C) spot transaction
(D) value tomorrow

P

Priyanka Tomar • 35.28K Points
Coach

Q 10. Transaction in which exchange of currencies take place at a specified future date, subsequent to spot date is known as,

(A) swap transaction
(B) forward transaction
(C) future transaction
(D) non-deliverable forwards

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