Top 250+ Solved Business Economics MCQ Questions Answer

From 61 to 75 of 288

Q. The countries of the world are following the exchange rate system.

a. fixed

b. flexible

c. restrictive

d. strict

  • b. flexible

Q.         _has enabled faster growth of the foreign exchange market.

a. Technology

b. Leverage

c. Internaltrade

d. exchange rate

  • a. Technology

Q.     __ function refer to the function of converting one currency into another.

a. Arbitrage

b. booking

c. asking

d. hedging

  • d. hedging

Q.     _ are authorized to deal in foreign exchange transactions.

a. Moneylenders

b. Money launderers

c. Commercial banks

d. RRBs

  • c. Commercial banks

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

  • a. inceae

Q. A _ country requires more foreign exchange.

a. developing

b. developed

c. hermit nation

d. restrictive

  • a. developing

Q. Unilateral payments received _ _ the supply of foreign exchange.

a. increase

b. decrease

c. does not change

d. drastically changes

  • a. increase

Q.     _ rate variations can affect the equilibrium exchange rate.

a. Birth

b. death

c. inflation

d. production

  • c. inflation

Q. Interest rate differentials the exchange rate.

a. affect

b. tandardised

c. localise

d. neutralise

  • a. affect

Q. The degree of _ achieved affect the exchange rate.

a. education

b. health

c. growth

d. currency

  • c. growth

Q. The purchasing power parity theory the difference in the quality of goods.

a. considers

b. appreciates

c. ignores

d. values

  • c. ignores

Q. The PPP theory _ capital transfers.

a. considers

b. appreciates

c. ignores

d. values

  • c. ignores

Q. The _rate is determined by the demand for and supply of a currency.

a. spot

b. forward rate

c. option

d. futures

  • a. spot
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