McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Tourism Studies (BTS) .
| 1. |
Coverage of risks due to fluctuating exchange rates is known as --------- |
| A. | Speculation |
| B. | Arbitrage |
| C. | Hedging |
| D. | Forward rate |
| Answer» C. Hedging | |
| 2. |
The demand for foreign exchange is determined by country’s ------------ |
| A. | Exports |
| B. | Imports |
| C. | Exports and imports |
| D. | None of these |
| Answer» B. Imports | |
| 3. |
Purchasing power purity theory was introduced by ------------ |
| A. | Fisher |
| B. | Cassel |
| C. | Marshall |
| D. | Paul Einzing |
| Answer» B. Cassel | |
| 4. |
EURO is the currency of ---------------- |
| A. | European Union |
| B. | Europe |
| C. | Britain |
| D. | None of these |
| Answer» A. European Union | |
| 5. |
The currency of Italy is ---------------- |
| A. | Euro |
| B. | Dollars |
| C. | Yen |
| D. | Pound |
| Answer» A. Euro | |
| 6. |
EXIM Bank of India was set up in --------------- |
| A. | 1981 |
| B. | 1982 |
| C. | 1983 |
| D. | 1984 |
| Answer» B. 1982 | |
| 7. |
The difference between buying and selling rate is called |
| A. | ASK rate |
| B. | Bid rate |
| C. | Spread |
| D. | SWAP |
| Answer» C. Spread | |
| 8. |
The rate at which the exchange dealer is ready to buy a currency as known as ---------------- |
| A. | Ask rate |
| B. | SWAP rate |
| C. | Spread |
| D. | Bid rate |
| Answer» D. Bid rate | |
| 9. |
The members of the IMF are the members of -------------- |
| A. | IFC |
| B. | IDA |
| C. | ADB |
| D. | IBRD |
| Answer» D. IBRD | |
| 10. |
World Bank is also known as -------------------- |
| A. | IBRD |
| B. | IFC |
| C. | IDA |
| D. | MIGA |
| Answer» A. IBRD | |
| 11. |
Balance of Trade is a ---- |
| A. | Stock Concept |
| B. | Flow Concept |
| C. | Stock and Flow Concept |
| D. | None of these |
| Answer» B. Flow Concept | |
| 12. |
Which one of the following items in the balance of payments is invisible |
| A. | Travel |
| B. | Shipping |
| C. | Export of goods |
| D. | Gifts |
| Answer» A. Travel | |
| 13. |
Gold standard is an example of |
| A. | Floating exchange rate |
| B. | Fixed exchange rate |
| C. | Crawling peg |
| D. | Crawling bands |
| Answer» B. Fixed exchange rate | |
| 14. |
Flexible exchange rate is based on the concept of |
| A. | Supply |
| B. | Demand |
| C. | Demand and supply |
| D. | None of these |
| Answer» C. Demand and supply | |
| 15. |
A BOP surplus can be corrected through -------------- |
| A. | Export promotion |
| B. | Exchange control |
| C. | Appreciation |
| D. | Increase in interest |
| Answer» C. Appreciation | |
| 16. |
BOP deficit can be corrected through -------------- |
| A. | Increasing imports |
| B. | Increasing exports |
| C. | Increase in interest rates |
| D. | None of these |
| Answer» B. Increasing exports | |
| 17. |
Foreign exchange is demanded by ------------- |
| A. | Exporters |
| B. | Domestic travelers |
| C. | Importers |
| D. | None of these |
| Answer» C. Importers | |
| 18. |
Devaluation will improve when elasticity of demand of country’s export and import is |
| A. | Less than one |
| B. | Equal to one |
| C. | Infinity |
| D. | Greater than one |
| Answer» D. Greater than one | |
| 19. |
Deficit BOP can be solved by -------------------- |
| A. | Expenditure switching policies |
| B. | Expenditure reducing policies |
| C. | Both a and b |
| D. | None of these |
| Answer» C. Both a and b | |
| 20. |
Floating exchange rate become common in ---------------- |
| A. | 1980’s |
| B. | 1970’s |
| C. | 1960’s |
| D. | 1950’s |
| Answer» B. 1970’s | |
| 21. |
The ASEAN was established in -------------------- |
| A. | 1967 |
| B. | 1977 |
| C. | 1987 |
| D. | 1999 |
| Answer» A. 1967 | |
| 22. |
The difference between the value of goods and services exported and imported is called ------------- |
| A. | BOP |
| B. | BOT |
| C. | Balance on Capital Account |
| D. | Balance of Current Account |
| Answer» B. BOT | |
| 23. |
The convertibility of dollar was formally abandoned in --------------- |
| A. | 1962 |
| B. | 1966 |
| C. | 1973 |
| D. | 1971 |
| Answer» D. 1971 | |
| 24. |
Soft loans to underdeveloped countries are disbursed by ----------- |
| A. | IDA |
| B. | IBRD |
| C. | GATT |
| D. | ADB |
| Answer» A. IDA | |
| 25. |
IFC was established in ---------------- |
| A. | 1958 |
| B. | 1956 |
| C. | 1954 |
| D. | 1950 |
| Answer» B. 1956 | |
| 26. |
GATT came into existence in ---------------- |
| A. | 1947 |
| B. | 1946 |
| C. | 1948 |
| D. | 1950 |
| Answer» C. 1948 | |
| 27. |
SDRs scheme was initiated in ------------------- |
| A. | 1950’s |
| B. | 1960’s |
| C. | 1970’s |
| D. | 1980’s |
| Answer» C. 1970’s | |
| 28. |
India is a member of ------------- |
| A. | ADB |
| B. | IMF |
| C. | IBRD |
| D. | All the above |
| Answer» D. All the above | |
| 29. |
Regional member of the Asian Development Bank is |
| A. | India |
| B. | UK |
| C. | Brazil |
| D. | South Africa |
| Answer» A. India | |
| 30. |
GATT was changed to --------------- |
| A. | WTO |
| B. | IBRD |
| C. | ADB |
| D. | IMF |
| Answer» A. WTO | |
| 31. |
IMF started its functioning from |
| A. | 1947 |
| B. | 1948 |
| C. | 1958 |
| D. | 1978 |
| Answer» A. 1947 | |
| 32. |
Which are known as Bretton Wood Twins? |
| A. | IMF&IFC |
| B. | IFC & IDA |
| C. | IMF & IBRD |
| D. | ADB & IDA |
| Answer» C. IMF & IBRD | |
| 33. |
The headquarter of world Bank is at ------------------ |
| A. | Washington DC |
| B. | Paris |
| C. | Geneva |
| D. | London |
| Answer» A. Washington DC | |
| 34. |
The equilibrium exchange rate is determined by --------------- |
| A. | Demand for currencies |
| B. | Supply of currencies |
| C. | Demand and Supply of currencies |
| D. | None of these |
| Answer» C. Demand and Supply of currencies | |
| 35. |
Determining the exchange rate at a higher level than prevailing in the foreign exchange market is known as ------------ |
| A. | Pegging up |
| B. | Pegging down |
| C. | Undervaluation |
| D. | None of these |
| Answer» A. Pegging up | |
| 36. |
FEMA is known as ------------- |
| A. | FEMA 1999 |
| B. | FEMA 2000 |
| C. | FEMA 2001 |
| D. | FEMA 1998 |
| Answer» A. FEMA 1999 | |
| 37. |
According to PPP theory the exchange rate between two currencies are determined by their ------------ |
| A. | Relative price level |
| B. | Relative interest level |
| C. | Relative income level |
| D. | None of these |
| Answer» A. Relative price level | |
| 38. |
In the exchange rate determination PPP theory considers -------- |
| A. | Interest rates |
| B. | Inflation rates |
| C. | Spot transactions |
| D. | None of these |
| Answer» B. Inflation rates | |
| 39. |
The rate at which one currency is exchanged for another is known as ------------ |
| A. | Exchange options |
| B. | Foreign exchange |
| C. | Exchange rate |
| D. | Futures |
| Answer» C. Exchange rate | |
| 40. |
The objective of IDA is |
| A. | Increase production |
| B. | Stability in exchange rate |
| C. | Improve living conditions |
| D. | Increase income |
| Answer» C. Improve living conditions | |
| 41. |
Smithsonian Agreement was signed in the year --------- |
| A. | 1970 |
| B. | 1972 |
| C. | 1973 |
| D. | 1971 |
| Answer» D. 1971 | |
| 42. |
The objective of IMF is |
| A. | Reduce Inequality |
| B. | Exchange rate stability |
| C. | Reduce poverty |
| D. | None of these |
| Answer» B. Exchange rate stability | |
| 43. |
SDRs are also known as ----------- |
| A. | Currency |
| B. | Gold |
| C. | Paper gold |
| D. | None of these |
| Answer» C. Paper gold | |
| 44. |
IBRD was established in |
| A. | 1940 |
| B. | 1943 |
| C. | 1944 |
| D. | 1945 |
| Answer» D. 1945 | |
| 45. |
The official decrease in the value of a currency is known as --------- |
| A. | Depreciation |
| B. | Devaluation |
| C. | Appreciation |
| D. | None of these |
| Answer» B. Devaluation | |
| 46. |
Globalised economics prefer------------ |
| A. | Fixed System |
| B. | Pegging system |
| C. | Flexible system |
| D. | Bretton wood system |
| Answer» C. Flexible system | |
| 47. |
The European Union was formed in |
| A. | 1950 |
| B. | 1951 |
| C. | 1952 |
| D. | 1953 |
| Answer» C. 1952 | |
| 48. |
Which is known as soft loan window of IBRD |
| A. | MIGA |
| B. | IFC |
| C. | IMF |
| D. | IDA |
| Answer» D. IDA | |
| 49. |
IFC was established in ------------ |
| A. | 1953 |
| B. | 1954 |
| C. | 1955 |
| D. | 1956 |
| Answer» D. 1956 | |
| 50. |
Yen is the currency of ---------- |
| A. | China |
| B. | Singapore |
| C. | Malaysia |
| D. | Japan |
| Answer» D. Japan | |
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