Top 150+ Solved Principles of Internation Business for Tourism MCQ Questions Answer
Q. ------------------- system imposes a discipline an monetary authorities
a. Flexible
b. Fixed
c. Bretton wood
d. None of these
Q. Speculation is not possible in the case of --------- system
a. Flexible
b. Gold standard
c. Fixed
d. None of these
Q. Increased capital inflows increases ------------------
a. Imports
b. Value of domestic currency
c. Value of foreign currency
d. None of these
Q. Political instability leads to ------------- in the value of that country’s currency
a. Decrease
b. Stability
c. Increase
d. None of these
Q. -------------- is a social factor that influence the exchange rate
a. War
b. Tourism
c. Changes in preferences
d. None of these
Q. When exports increase, the supply of foreign currency -----------
a. Increases
b. Decrease
c. Remains constant
d. None of these
Q. When imports increase, the supply of foreign currency -------------
a. Increase
b. Decrease
c. Remains constant
d. None of these
Q. Price index is considered in ---------------- theory of exchange rate determination
a. BOP theory
b. PPP theory
c. Mint Purity theory
d. None of these
Q. Capital outflows leads to increase in the ---------------
a. Supply of foreign currencies
b. Demand for foreign currencies
c. Demand for domestic currency
d. None of these
Q. A deficit budget leads to ----------------
a. Decrease in the value of domestic currency
b. Increase in the value of domestic currency
c. Stability in the exchange rate
d. None of these
Q. Mint parity theory is suitable for ---------
a. Gold standard
b. Paper standard
c. Flexible system
d. None of these
Q. Forex reserves of a country are held by ---------------------
a. Commercial Banks
b. Central Banks
c. Investment Banks
d. None of these
Q. Extending of economic activities across national boundaries is known as -------------
a. Liberalization
b. Privatization
c. Globalization
d. None of these
Q. Central bank is likely to set policies and procedures to keep the exchange rate ------------------
a. Down
b. Stable
c. Up
d. None of these