Top 250+ Solved Business Economics MCQ Questions Answer

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Q. 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

  • b. forward transaction

Q. 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

  • d. value tomorrow

Q. 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

  • a. their relative price levels

Q. Which of the following is not an assumption of the Purchasing Power Paritytheory? _                      

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

  • d. Changes in the exchange rate changes internal price level

Q. 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

  • a. purchasing power of two currencies

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

a. differential

b. identical

c. superior

d. inferior

  • b. identical

Q. Under IMF, the exchange rate system was    _                 

a. gold standard

b. currency board system

c. dollarization

d. EURO

  • a. gold standard

Q. 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

  • a. only purchase

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

a. Market forces

b. Central Bank

c. commercial bank

d. Scheduled Bank

  • a. Market forces

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

a. Fixed

b. Flexible

c. Managed

d. Stable

  • c. Managed

Q. The value of NNP at consumer point is called the

a. nnp at factor cost

b. nnp at market price

c. gnp at market price

d. gnp at factor cost

  • b. nnp at market price

Q. When depreciation is deducted from GNP, the net value is

a. net national product (nnp)

b. net domestic product

c. gross national product

d. disposable income

  • a. net national product (nnp)

Q. What is the net value of GDP after deducting depreciation from GDP(Gross domestic product)?

a. net national product

b. net domestic product

c. gross national product

d. disposable income

  • b. net domestic product

Q. Which of the following is considered as financial year in India?

a. april 1 to march 31

b. january 1 to december 31

c. march 1 to april 30

d. march 16 to march 15

  • a. april 1 to march 31
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