Exchange rate - class-XII
Description: exchange rate | |
Number of Questions: 59 | |
Created by: Rani Rajan | |
Tags: international economics business economics and quantitative methods concept of international trade foreign trade economics balance of payments open economy macroeconomics balance of trade and balance of payments balance of payments and exchange rate |
A change from $Rs.140 = 2$ pounds to $Rs. 60 = 1$ pounds indicates that Rs. is:
Depreciation of domestic currency leads to rise in exports.
Appreciation of Indian rupees will occur when $Rs. 45$ have to be paid to exchange one $US $ $ instead of present rate of $Rs. 40/$ $.
Which of the following items raises the supply of foreign exchange?
In spot market, sale and purchase of foreign currency is settled on a specified future date.
Depreciation of domestic currency leads to rise in _____________.
Flexible exchange rate system is also known as __________.
Devaluation of currency means ____________________.
When receipts of foreign exchange are more than payments of foreign exchange, BOP is ____________.
A rise in supply of a currency would lead to its appreciation, assuming no change in other factors.
An increase in demand for imported goods raises the demand for foreign exchange.
Under managed floating rate system, central bank maintains reserves of foreign exchange.
Devaluation and depreciation of currency are one and the same thing.
Under flexible exchange rate system, each country fixes its value of currency in terms of some external standard.
Demand for American goods will rise in India due to appreciation of Indian currency.
Foreign exchange transactions dependent on other foreign exchange transactions are called ________________.
Huge international reserves are required to be maintained by the government in fixed and flexible exchange rate system.
Increase in foreign exchange rate leads to rise in supply of foreign exchange.
Flexible exchange rate is determined by the government.
_________ refers to a system in which foreign exchange rate is determined by market forces and central bank influences the exchange rate through intervention.
Supply curve of foreign exchange ____________________.
Other things remaining the same, when foreign currency becomes cheaper, the effect on national income is likely to be:
The value of US Dollar $ $1$ has gone down from $Rs. 67$ to $Rs. 65$. It means that ________________.
Value of the Indian currency to a currency of another country shows the concept of the exchange rate.
Many a time we read in financial newspapers a term/name NMCEX. What is the full form of the same?
Which of the following policies of the financial sector is basically designed to transfer local financial assets into foreign financial assets freely and at market determined exchange rates?
Policy of
Select the correct statement/statements for the situation when a currency goes for 'devaluation' using the code given below:
1. Fall in the value of currency vis-a-vis international currencies.
2. Exports become more competitive.
3. Trading partners see fall in their exports.
For which of the following purposes Indian currency is fully convertible? Select correct code :
1. Repatriation of remittances
2. Interest payments of foreign loans
3. Direct foreign investment
4. Indirect foreign investment
5. Trade
Which one is not correct about country when its currency goes for depreciation?
For which of the following purpose Indian currency is fully convertible- select your answer, using the code given below :
1. For repatriation of remittances and trade purposes
2. Servicing of the foreign loans
3. Direct foreign investment
4. Indirect foreign investment
Select the correct one/ones in case of a volatility in the exchange rate of the rupee-using the code given below:
1. With depreciation in it, India's export earning increase.
2. Oil marketing companies of India benefit out of appreciation in it.
Select the correct outcomes up depreciation in a country's currency-using the code given below:
1. Export of the country goes up as value of the export falls in the international market.
2. At times, countries use it as a means to promote their exports.
3.Promoting exports through depreciation in ones currency is like selling national assets at throwaway prices to the world.
Select the correct one/ones related to the provision of rupee convertibility in India, using the code given below:
2. To the extent capital outflow by a foreign company is concerned, India allows full convertibility to rupee in the capital account up to the level of $ \,$500$ million.
The exchange rate of currency is maintained at the same level in all the foreign exchange markets through _____________.
Devaluation works best when __________________.
A change from USD 3 = GBP 1 to USD 2 = GBP 1 represents ___________.
By devaluation we mean ___________________.
A surge in foreign capital inflows in India would lead to the ______________________.
Purchasing Power Parity theory is related with ________.
What is the meaning of devaluation of money?
The first public issuance of a company's shares to investors on a stock exchange to raise capital is known as ________.
What is the main feature of a fixed exchange rate?
Which country follows a fixed exchange rate system?
Which country follows an flexible exchange rate system?
What is Forex?
What is foreign exchange rate?
What is the main feature of a flexible exchange rate system?
India devalued Rupee for the first time in ________.
Foreign investments includes _______.
Devaluation of currency means a ________.
In what way devaluation helps a country?
Which of these measures is / are essential to make devaluation successful?
SDR stands for ______.
Depreciation of currency means a ________.
Dual exchange rate was introduced in _______.
FERA was replaced by ________.
FERA stands for ____________.
India has achieved full convertibility of the Rupee in _________.
In commodity exchanges in India, Index Futures are not permitted, as some of the provisions of the FCRA do not allow the same. What is the full form of FCRA?