McqMate
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 |
51. |
A deficit BOP exists, when ----------------- |
A. | Receipts> payments |
B. | Receipts< payments |
C. | Receipts= payments |
D. | None of these |
Answer» B. Receipts< payments |
52. |
IBRD is also known as --------------- |
A. | Asian Bank |
B. | Development Bank |
C. | World Bank |
D. | Investment Bank |
Answer» C. World Bank |
53. |
Bretton wood twins are ------------------ |
A. | IMF& world Bank |
B. | IMF & ADB |
C. | IBRD & IFC |
D. | IDA & IFC |
Answer» C. IBRD & IFC |
54. |
UNCTAD was constituted in ----------- |
A. | 1961 |
B. | 1962 |
C. | 1963 |
D. | 1964 |
Answer» D. 1964 |
55. |
WTO came into existence with a membership of ------------------ |
A. | 124 |
B. | 125 |
C. | 121 |
D. | 120 |
Answer» B. 125 |
56. |
GATT was constituted in ---------------- |
A. | 1946 |
B. | 1947 |
C. | 1948 |
D. | 1950 |
Answer» C. 1948 |
57. |
The Indian Currency code used in foreign exchange market is |
A. | INR |
B. | IDN |
C. | IND |
D. | IDA |
Answer» A. INR |
58. |
--------------- takes into account only merchandize exports and imports |
A. | BOP |
B. | BOT |
C. | TOB |
D. | BTO |
Answer» B. BOT |
59. |
Which is known as paper gold |
A. | SRDs |
B. | SDRs |
C. | YEN |
D. | DOLLAR |
Answer» B. SDRs |
60. |
Increase in the value of a currency is known as -------------- |
A. | Devaluation |
B. | Depreciation |
C. | Appreciation |
D. | None of these |
Answer» C. Appreciation |
61. |
Decrease in the value of a currency is known as ------------- |
A. | Depreciation |
B. | Appreciation |
C. | Overvaluation |
D. | None of these |
Answer» A. Depreciation |
62. |
IMF created buffer stock financing facility in ----------- |
A. | 1959 |
B. | 1969 |
C. | 1979 |
D. | 1989 |
Answer» B. 1969 |
63. |
SDRs are popularly known as ------------------ |
A. | Gold |
B. | Paper gold |
C. | Paper money |
D. | None of these |
Answer» B. Paper gold |
64. |
IDA was established in ------------- |
A. | 1960 |
B. | 1950 |
C. | 1970 |
D. | 1955 |
Answer» A. 1960 |
65. |
The President of IBRD is the head of --------------- |
A. | ADB |
B. | IDA |
C. | EFTA |
D. | None of these |
Answer» B. IDA |
66. |
The membership of the IDA is open to all membership of ----------- |
A. | ADB |
B. | IDBI |
C. | ICICI |
D. | IBRD |
Answer» D. IBRD |
67. |
Part I members of IDA are called ------------------- |
A. | G24 members |
B. | G10 members |
C. | G20 members |
D. | None of these |
Answer» A. G24 members |
68. |
IFC was established in ------------- |
A. | 1956 |
B. | 1958 |
C. | 1960 |
D. | none |
Answer» A. 1956 |
69. |
IDA loans are known as ------------- |
A. | IDA window |
B. | IDA credits |
C. | IDA loans |
D. | None of these |
Answer» B. IDA credits |
70. |
IDA grants loans to those projects which are not financed by ------- |
A. | IMF |
B. | ADB |
C. | IBRD |
D. | ASEAN |
Answer» C. IBRD |
71. |
Which is the largest financial market in the world |
A. | International Capital Market |
B. | International financial market |
C. | Foreign exchange market |
D. | None of these |
Answer» C. Foreign exchange market |
72. |
FEMA is enacted by --------- |
A. | Parliament of India |
B. | Supreme Court of India |
C. | RBI |
D. | None of these |
Answer» A. Parliament of India |
73. |
The currency of Austria |
A. | Euro |
B. | Dollar |
C. | Mark |
D. | Pound |
Answer» A. Euro |
74. |
Which monetary system is suitable for global economies |
A. | Fixed |
B. | Pegging |
C. | Flexible |
D. | None of these |
Answer» C. Flexible |
75. |
Smithsonian Agreement is for ----------------------- |
A. | Saving bretton wood system |
B. | Saving gold standard |
C. | Protect flexible system |
D. | None of these |
Answer» A. Saving bretton wood system |
76. |
------------------- system imposes a discipline an monetary authorities |
A. | Flexible |
B. | Fixed |
C. | Bretton wood |
D. | None of these |
Answer» B. Fixed |
77. |
Speculation is not possible in the case of --------- system |
A. | Flexible |
B. | Gold standard |
C. | Fixed |
D. | None of these |
Answer» C. Fixed |
78. |
Increased capital inflows increases ------------------ |
A. | Imports |
B. | Value of domestic currency |
C. | Value of foreign currency |
D. | None of these |
Answer» B. Value of domestic currency |
79. |
Political instability leads to ------------- in the value of that country’s currency |
A. | Decrease |
B. | Stability |
C. | Increase |
D. | None of these |
Answer» A. Decrease |
80. |
-------------- is a social factor that influence the exchange rate |
A. | War |
B. | Tourism |
C. | Changes in preferences |
D. | None of these |
Answer» C. Changes in preferences |
81. |
When exports increase, the supply of foreign currency ----------- |
A. | Increases |
B. | Decrease |
C. | Remains constant |
D. | None of these |
Answer» A. Increases |
82. |
When imports increase, the supply of foreign currency ------------- |
A. | Increase |
B. | Decrease |
C. | Remains constant |
D. | None of these |
Answer» B. Decrease |
83. |
Price index is considered in ---------------- theory of exchange rate determination |
A. | BOP theory |
B. | PPP theory |
C. | Mint Purity theory |
D. | None of these |
Answer» B. PPP theory |
84. |
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 |
Answer» B. Demand for foreign currencies |
85. |
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 |
Answer» A. Decrease in the value of domestic currency |
86. |
Mint parity theory is suitable for --------- |
A. | Gold standard |
B. | Paper standard |
C. | Flexible system |
D. | None of these |
Answer» A. Gold standard |
87. |
Forex reserves of a country are held by --------------------- |
A. | Commercial Banks |
B. | Central Banks |
C. | Investment Banks |
D. | None of these |
Answer» B. Central Banks |
88. |
Extending of economic activities across national boundaries is known as ------------- |
A. | Liberalization |
B. | Privatization |
C. | Globalization |
D. | None of these |
Answer» C. Globalization |
89. |
The WTO is the successor to ------------- |
A. | VAT |
B. | GATT |
C. | GTT |
D. | ATT |
Answer» B. GATT |
90. |
Central bank is likely to set policies and procedures to keep the exchange rate ------------------ |
A. | Down |
B. | Stable |
C. | Up |
D. | None of these |
Answer» B. Stable |
91. |
------------- of a country is the relation over a period between the values of her exports and the values of her imports |
A. | BOP |
B. | BOT |
C. | Budget |
D. | None of these |
Answer» B. BOT |
92. |
Devaluation raised the domestic price of -------------- |
A. | Exports |
B. | Imports |
C. | Both exports and imports |
D. | None of these |
Answer» B. Imports |
93. |
Devaluation reduces the foreign price of -------------- |
A. | Exports |
B. | Imports |
C. | Both exports and imports |
D. | None of these |
Answer» A. Exports |
94. |
Under gold standard the value of the currency unit was defined in terms of ------------- |
A. | Currencies |
B. | Silver |
C. | Gold |
D. | None of these |
Answer» C. Gold |
95. |
The ADB was set up in the year |
A. | 976 |
B. | 1967 |
C. | 1965 |
D. | 1966 |
Answer» D. 1966 |
96. |
The ADB is managed by ------------- |
A. | Director General |
B. | Managing Director |
C. | President |
D. | None of these |
Answer» C. President |
97. |
Mahalanobis Strategy adopted in the ----------- |
A. | 1st five year plan |
B. | 2ND five year plan |
C. | 3RD five year plan |
D. | 4TH five year plan |
Answer» B. 2ND five year plan |
98. |
EXIM Bank of India was established in --------------- |
A. | 1980 |
B. | 1981 |
C. | 1982 |
D. | 1983 |
Answer» C. 1982 |
99. |
Euro is a ---------- |
A. | Basket Currency |
B. | Paper Gold |
C. | Gold Currency |
D. | None of these |
Answer» A. Basket Currency |
100. |
The agreement, TRIPs and TRIMs are related to ------------- |
A. | ADB |
B. | IBRD |
C. | WTO |
D. | None of these |
Answer» C. WTO |
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