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150+ Financial Institutions and Markets Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Economics (CBCS) .

Chapters

Chapter: Foreign Exchange Markets
151.

The market forces influencing the exchange rate are not fully operational under

A. floating exchange rate system
B. speculative attack on the market
C. fixed exchange rate system
D. current regulations of IMF
Answer» C. fixed exchange rate system
152.

According managed to classification by IMF, the currency system of India falls under

A. Managed flating
B. independently floating
C. crawling peg
D. pegged to basket of currencies
Answer» A. Managed flating
153.

Under fixed exchange rate system, the currency rate in the market is maintained through

A. official intervention
B. rationing of foreign exchange
C. centralising all foreign exchange operations with central bank of the country
D. none of the above
Answer» A. official intervention
154.

Euro was launched on

A. 1999
B. 2000
C. 2002
D. 2004
Answer» A. 1999
155.

Indirect rate of exchange is quoted in India for -

A. sale of foreign travellers cheque
B. sale of rupee travellers cheques
C. purchase of personal cheques
D. none of the above
Answer» D. none of the above
156.

A transaction in which the currencies to be exchanged the next day of the transaction is known as

A. ready transaction
B. value today
C. spot transactions
D. Value tomorrow
Answer» D. Value tomorrow
157.

The transaction in which the exchange of currencies takes place at a specified future date, subsequent to the spot date is known as a

A. swap transaction
B. forward transaction
C. future transaction
D. non-deliverable forwards
Answer» B. forward transaction
158.

The buying rate is also known as the

A. bid rate
B. offer rate
C. spread
D. swap
Answer» A. bid rate

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