Top 250+ Solved Business Economics MCQ Questions Answer
Q. The countries of the world are following the exchange rate system.
a. fixed
b. flexible
c. restrictive
d. strict
Q. _ _ is a feature of the foreign exchange market which enables an investor to earn high returns.
a. cost
b. Leverage
c. revenue
d. profit
Q. _has enabled faster growth of the foreign exchange market.
a. Technology
b. Leverage
c. Internaltrade
d. exchange rate
Q. __ function refer to the function of converting one currency into another.
a. Arbitrage
b. booking
c. asking
d. hedging
Q. _ are authorized to deal in foreign exchange transactions.
a. Moneylenders
b. Money launderers
c. Commercial banks
d. RRBs
Q. Investment in financial assets like shares or bonds abroad will _- the demand for foreign exchange.
a. inceae
b. decrease
c. keep constant
d. fluctuate
Q. A _ country requires more foreign exchange.
a. developing
b. developed
c. hermit nation
d. restrictive
Q. Services rendered by the domestic country to foreign counter parts increase the _ of foreign exchange.
a. supply
b. demand
c. manufacture
d. produce
Q. Unilateral payments received _ _ the supply of foreign exchange.
a. increase
b. decrease
c. does not change
d. drastically changes
Q. _ rate variations can affect the equilibrium exchange rate.
a. Birth
b. death
c. inflation
d. production
Q. Interest rate differentials the exchange rate.
a. affect
b. tandardised
c. localise
d. neutralise
Q. The purchasing power parity theory the difference in the quality of goods.
a. considers
b. appreciates
c. ignores
d. values
Q. The _rate is determined by the demand for and supply of a currency.
a. spot
b. forward rate
c. option
d. futures