Top 250+ Solved Business Economics MCQ Questions Answer

From 76 to 90 of 288

Q. The differencbetween bid price and ask price s the _     

a. loss

b. profit

c. value

d. difference

  • b. profit

Q.     _ exchange rate may be either at a premium or discount or at par.

a. spot

b. forward

c. current

d. option

  • b. forward

Q. In a system of managed float there is less chance of speculation.

a. flexible

b. managed float

c. fixed

d. restictive

  • b. managed float

Q.     __ is done to overcome uncertainties.

a. Arbitrage

b. Hedging

c. speculation

d. locking

  • b. Hedging

Q.     _ is the opposite of hedging.

a. Arbitrage

b. locking

c. speculation

d. blocking

  • c. speculation

Q. The modern foreign exchange market functions in a system of _ .

a. Fixed exchange rate

b. Gold standard

c. Britton Wood system

d. Floating exchange rate

  • d. Floating exchange rate

Q. Pick out the feature which is not true of the foreign exchange market.

a. Buying and selling of currencies

b. Largest market

c. High liquidity

d. Existence of a central market place

  • d. Existence of a central market place

Q. In the determination of the exchange value of a currency, the first currency of a currency pair is called _ .

a. Price currency

b. Hard currency

c. Base currency

d. bitcoin

  • c. Base currency

Q. The currency used for international transactions irrespective of the importing or exporting country’s currency is called _ .

a. Soft currency

b. Bitcoin

c. Vehicle currency

d. value currency

  • c. Vehicle currency

Q. Pick out the feature which is not true of the foreign exchange market.

a. It is open 24 hours a day

b. Not one single entity can control the market

c. Huge market

d. It has limited geographical dispersion

  • c. Huge market

Q.     _ enables an investor to earn high returns while minimizing capital risks.

a. Liquidity

b. Reserves

c. Returns

d. Leverage

  • d. Leverage

Q. Trading in foreign exchange has become fast and simple due to _ .

a. Simple procedures

b. Geographical proximity

c. Improved technology

d. Bullet trains

  • b. Geographical proximity

Q. Pick out the feature which is not true of the foreign exchange market.

a. Huge trading volumes

b. Operates throughout the week

c. Presence of a risk element

d. Leverage enables to make profit

  • b. Operates throughout the week

Q. The provision of foreign bills of exchange in international payments in an example of _ .

a. Transfer function

b. Credit function

c. Speculation

d. None of the above

  • c. Speculation

Q. Transaction where the exchange of currencies take place on the same date is known as

a. swap transaction

b. ready transaction

c. spot transaction

d. value tomorrow

  • b. ready transaction
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