mcq on foreign exchange rate class 12

Foreign exchange rate is the rate at which currency of one country can be exchanged for currency of another country. 35. Appreciation of currency refers to increase in the value of domestic currency in relation to foreign currency. Floating exchange rate system is also known as, a) Fixed exchange rate system b) Free exchange rate system c) Flexible exchange rate system d) Both (b) and (c). The Foreign Exchange Market Multiple Choice 1) The exchange rate is (a) the price of one currency relative to gold. What is the exchange rate at which currencies are exchanged in spot market? You can download Free MCQs - Foreign Exchange Rate Commerce Notes | EduRev pdf from EduRev by The conversion rate for the currencies are fluctuating as the rate of exchange is influenced by the factors of demand and supply. Foreign Exchange It refers to the reserve of foreign currencies. We provide all important questions and answers from chapter Foreign Exchange Management. a) Individual and firms b) Foreign exchange brokers c) Commercial and central bank d) All of the above. QUIZ : MCQs of Balance of Payment & Foreign Exchange Rate | Unacademy Login The value of US Dollar $1 has fallen form Rs. The document MCQs - Foreign Exchange Rate Commerce Notes | EduRev is a part of the Commerce Course Crash Course of Macro Economics -Class 12. a) Spot exchange rate b) Current exchange rate c) Forward exchange rate d) Both (a) and (b). These quiz objective questions are helpful for competitive exams. Hedging function helps to reduce the risk of fluctuation due to change in foreign exchange rate. ... A U.S. company took out a 12-month, 4% loan of £10,000 when the spot rate was $2 to £1. Foreign Exchange Rate – CBSE Notes for Class 12 Macro Economics. The demand curve of foreign exchange rate is, a) Horizontal line parallel to x- axis b) Vertical line parallel to y- axis c) Slope downwards d) Slope upwards, 23. We provide all important questions and answers from chapter Foreign Exchange Management. You can see some MCQs - Foreign Exchange Rate Commerce Notes | EduRev sample questions with examples at the bottom of this page. Scanned by CamScanner 3. a) Spot market b) Transfer market c) Forward market d) None of the above, MCQ on Foreign exchange rate Class 12 – Multiple Choice Questions Answers, 1. a) Foreign exchange Rate 2. c) Depreciation 3. a) Exports rise 4. c) Appreciation 5. b) Imports rise 6. d) Both (a) and (b) 7. b) Revaluation is done by the market fluctuations of demand and supply 8. c) Devaluation 9. c) Revaluation 10. a) Fixed exchange rate system 11. b) Fixed exchange rate system 12. b) Flexible exchange rate system 13. b) Flexible exchange rate system 14. b) Currency is depreciated 15. b) Currency is appreciated 16. b) Floating exchange rate system 17. c) Dirty floating 18. d) Both (b) and (c) 19. a) Parity value 20. d) Both (a) and (b) 21. a) Fixed exchange rate 22. d) Slope upwards 23. d) Slope upwards 24. b) Depreciation 25. a) Appreciation 26. a) Appreciation 27. b) Depreciation 28. a) Foreign exchange market 29. a) System 30. d) All of the above 31. a) Transfer function 32. c) Credit function 33. b) Hedging function 34. d) Both (a) and (c) 35. a) Spot market 36. b) Forward market 37. d) Both (a) and (b) 38. c) Forward exchange rate 39. d) All of the above 40. c) Forward market. 0 to £ . OBJECTIVE: To illustrate how countries control foreign exchange through licensing, multiple rates, import deposit requirements, and quantity controls 48. a) Increased demand for imports into the UK ... A fall in the sterling exchange rate will raise the foreign value of exports by more, the greater the price elasticity of demand for those exports. It means: a) Currency is depreciated b) Currency is appreciated c) Both (a) and (b) d) None of the above, 16. a) Foreign exchange market b) Securities market c) Both (a) and (b) d) None of the above, a) System b) Place c) Both (a) and (b) d) None of the above. a) Devaluation is done by the government b) Revaluation is done by the market fluctuations of demand and supply c) Appreciation is caused due to change in demand and supply of foreign exchange d) None of the above, 8. Which of the following are the buyers and sellers of foreign exchange? perfect preparation. Due to appreciation of domestic currency, a) Exports rise b) Imports rise c) Imports falls d) None on the above, a) Depreciation is caused because of fluctuations in demand and supply b) Devaluation is done intentionally by the government c) Appreciation is done intentionally by the government d) Both (a) and (b). It means: a) Currency is appreciated b) Currency is depreciated c) Both (a) and (b) d) None of the above. 80 for $ 2 earlier, then: (a) domestic currency has depreciated(b) domestic currency has appreciated(c) rupee value of import bill will increase(d) both (a) and (c)Ans: D, The document MCQs - Foreign Exchange Rate Commerce Notes | EduRev is a part of the. An arbitrageur in foreign exchange is a person who a) earns illegal profit by manipulating foreign exchange b) causes differences in exchange rates in different geographic markets c) simultaneously buys large amounts of a currency in one market and sell it in another market d) None of the above 30. (c) Reduced availability of goods due to reduced imports. Gkseries provide you the detailed solutions on Foreign Exchange Management as per exam pattern, to help you in day to day learning. Currency Exchange Rates MCQs? The foreign exchange rate is the price at which the _____ of one country exchanges for the _____ of another country. What is the exchange rate that prevails in the forward market? There chapter wise Practice Questions with complete solutions are available for download in myCBSEguide website and mobile app. (a) Flexible Exchange Rate System(b) Managed Floating Rate System(c) Floating Exchange Rate(d) Fixed Exchange Rate SystemAns: BQ.11 Depreciation of domestic currency leads to rise in: (a) Exports(b) Imports(c) Both (a) and (b)(d) Neither (a) nor (b)Ans: AQ.12 Imports of goods and services raises the _____ of foreign exchange. What do you mean by devaluation of domestic currency? If rupee is getting depreciated fast and is considered undesirable by the government, the RBI may be advised to, A change from Rs. Devaluation of domestic currency refers to decrease in the value of domestic currency which is done intentionally by the government. Scanned by CamScanner 4. The exchange rate keeps on changing in ________. Which function is highlighted here? The questions includes 1 mark questions, 2 mark questions, 3 mark questions, 4 mark questions, 5 mark questions and other questions as per the latest CBSE curriculum for the current session. 37. is. (a) Appreciated(b) Depreciated(c) Neither(d) Either (a) or (b)Ans: AQ.10 ______ refers to a system in which foreign exchange rate is determined by market forces and central bank influences the exchange rate through intervention. 19. When the value of a currency is fixed in terms of some other currency, it is called: a) Parity value b) Free value c) Money value d) None of the above. ... Download latest MCQs for Class 12 Economics, download in pdf free. Scanned by CamScanner 5. The decrease in the value of foreign exchange rate which is done intentionally by the government is called, a) Appreciation b) Depreciation c) Devaluation d) Revaluation, 9. In which system of exchange rate, the exchange rate does not change continuously? Find Tutor. 70. 24. Complete 12. Due to decrease in supply of foreign currency, there is. (d) the price of one currency relative to another. Download CBSE Class 12 Economics Bop And Foreign Exchange Rate Notes in pdf, Economics chapter notes, class notes mind maps formulas Revision Notes. By continuing, I agree that I am at least 13 years old and have read and agree to the. How is the foreign exchange the determined? Download CBSE Class 12 Economics Exchange Rate and Balance Of Payments MCQs in pdf, Economics chapter wise Multiple Choice Questions free The supply curve of foreign exchange rate is, 24. 3. 29. ______ is a market where foreign currencies are bought and sold. 30. 5. ... fixed exchange rates; (B) ... b) The value that households, banks, firms and the public sector lends to, or borrows from, a peer in a foreign country. a) Spot market b) Forward market c) Transfer market d) None on the above. Which of the following are the types of foreign exchange market? Depreciation takes place under which system? What is the exchange rate that prevails in the spot market? 120 are required to buy $ 2, instead of Rs.100 for $ 1 earlier, then: (a) domestic currency has appreciated(b) domestic currency has depreciated(c) rupee value of import bill will decrease(d) Both (a) and (c)Ans: DQ.23 If Rs.150 are required to buy $ 3, instead of Rs. 31. Meaning of Foreign Exchange Rate. Give the meaning of ‘foreign exchange’ and ‘foreign exchange rate’. Which two of the following would tend to increase the demand for sterling on the foreign exchange market? Indirect rate of exchange is quoted in India for - A. sale of foreign travellers cheque 140 = 2 £ to Rs. Due to depreciation of domestic currency, a) Exports rise b) Imports rise c) Exports falls d) None of the above, 4. a) Transfer function b) Hedging function c) Credit function d) None of the above. Increase in demand is caused due to import of goods. Appreciation takes place under which system? Ans. Activities that focus on the exchange rate, the price of one nation’s currency when valued against another’s, are a great way to prepare 21st century learners for the world they will inherit. Answers to Foreign exchange rate Class 12 MCQs are available at the end of the last question. 140 = 2 £ to Rs. Commerce. this is your one stop solution. Q.1 Devaluation which means fall in value of domestic currency in terms of foreign currency takes place in _____. If you want MCQs - Foreign Exchange Rate Commerce Notes | EduRev 11. Devaluation takes place under which system? Foreign Exchange Market: The Foreign Exchange market is the market where […] Foreign Exchange Rate and Balance of Payments Important Questions for class 12 economics Foreign Exchange Rate. Then according to the asset theory of exchange rate determination, the exchange rate today should be approximately a. CBSE Class 12 th Economic exam is scheduled for 13 th March 2020. 70 to Rs. MNCs are playing a major role in the globalisation process. All rights reserved. Due to decrease in demand, there is ________ of domestic currency. Due to increase in demand of foreign currency, there is, 25. Scanned by CamScanner 7. (a) Flexible Exchange Rate regime(b) Fixed Exchange Rate regime. (c) the change in the value of money over time. EduRev is a knowledge-sharing community that depends on everyone being able to pitch in when they know something. CBSE Notes CBSE Notes Macro Economics NCERT Solutions Macro Economics Introduction This chapter defines the meaning of foreign exchange and related terms, how foreign exchange rate is determined, study of foreign exchange rate regimes (fixed and flexible exchange rate) and their differences; thereafter … (a) Likely to rise(b) Likely to fall(c) both(d) Not affectedAns: AQ.5 Which of the following events can be expected to occur as a response to an expansion of exports of India ? 32. Tests & Videos, you can search for the same too. Depreciation of domestic currency is the decrease in value of domestic currency in relation to foreign currency. Scanned by CamScanner 9. 36. Appreciation of foreign exchange is done intentionally by the government. Hedging function is a function of which type of foreign exchange market? 28. The increase in the value of foreign exchange rate which is done intentionally by the government is called, a) Appreciation b) Depreciation c) Revaluation d) Devaluation. Foreign exchange refers to any currency other than the domestic currency. Scanned by CamScanner 11. MCQs - Foreign Exchange Rate Commerce Notes | EduRev chapter (including extra questions, long questions, short questions, mcq) can be found on EduRev, you can check Which of the following is a part of capital account? NCERT Solutions for Class 12 Macro Economics Chapter 9 Foreign Exchange Rate includes all the important topics with detailed explanation that aims to help students to understand the concepts better. Which function is highlighted here? You might introduce a study of exchange rates with a lesson about the types of coins and bills used in … a) Fixed exchange rate system b) Flexible exchange rate system c) Managed floating exchange rate system d) None of the above. What are the two types of markets in foreign exchange market? MCQ on Foreign exchange rate Class 12 – True or False. 39. Foreign exchange, for a Country A, refers to all the currencies, other than the local currency of Country A. Gkseries provide you the detailed solutions on Foreign Exchange Management as per exam pattern, to help you in day to day learning. Ans: BQ.22 If Rs. 1.6 CBSE Class 12 Economics-Macro balance of payment and Foreign exchange rate; 1.7 CBSE Class 12 Economics-Macro Government budget and the economy; 1.8 CBSE Class 12 Economics-Macro Determination of income and employment; 1.9 CBSE Class 12 Economics-Macro Money and banking; 1.10 CBSE Class 12 Economics-Micro Consumer equilibrium and demand UNIT X: BALANCE OF PAYMENTS AND FOREIGN EXCHANGE RATE Foreign Exchange refers to all currencies other than the domestic currency of a given country. For Example, currently : $ 1 = Rs. Studiestoday. Foreign exchange rate is the value of all currencies including the domestic currencies. Foreign exchange market transfers the purchasing power between two countries involved in buying and selling activities. Answer: Foreign exchange is referred to as the conversion of a currency into another at a specific rate. Scanned by CamScanner 10. Due to decrease in demand of foreign currency, there is, 26. a) Fixed exchange rate b) Flexible exchange rate c) Managed floating exchange rate d) None of the above, 22. Fixed exchange rate is also called managed floating. The price of one currency in terms of other currency is called: a) Foreign exchange Rate b) Flexible rate of exchange c) Current rate of exchange d) None of the above, 2. Foreign exchange rate is determined freely by the market forces of demand and supply. The decrease in the value of domestic currency in relation to foreign currency due to fluctuations in the foreign exchange rate is, a) Devaluation b) Appreciation c) Depreciation d) None of the above. In this article we have complied a list of important questions from Chapter 6 of Part B (Macroeconomics): Open Economy Macroeconomics. myCBSEguide has just released Chapter Wise Question Answers for class 12 Economics. Class 12 Economics Balance of Payments have different set of questions. More.. a) Flexible exchange rate system b) Fixed exchange rate system c) Managed floating exchange rate system d) None of the above. 21. Foreign exchange market helps the parties in agreement to be safe from the risk of change in the price of foreign exchange. What is the transfer function of foreign exchange market? Giving reason, explain the relation between foreign exchange rate and demand for foreign exchange. Answer the following questions and then press 'Submit' to get your score. To Study MCQs - Foreign Exchange Rate Commerce Notes | EduRev for Commerce What is the foreign exchange and foreign exchange rate? This is MCQ on Foreign exchange rate Class 12 - T/F, Short answers, Fill ups, MCQs - CBSE Economics chapter wise MCQ questions (Macroeconomics) Instructions. The exchange rate for a currency depends on which foreign exchange market you use. 73 . (b) Reduced availability of goods due to increased exports. The equilibrium point when demand of forex meets supply of forex is called _______, When supply of forex exceeds the demand of forex, it is called, Due to increase in demand, there is ________. This document is highly rated by Commerce students and has been viewed 21185 times. 7. Chapter 12: Multiple choice questions. 1. (b) the value of a currency relative to inflation. Which of the following is the market which deals in sale and purchase of foreign currency immediately? Balance of Payments & Foreign Exchange Class 12 Economics Extra Questions. What is the other name of managed floating? 38. of MCQs - Foreign Exchange Rate Commerce Notes | EduRev for Commerce, the answers and examples explain the meaning of chapter in the best manner. 68. Geoff Riley FRSA has been teaching Economics for over thirty years. What is the system in which the foreign currencies are bought and sold? a. 34. (c) More supply of Indian rupees(d) Less demand for Indian rupees.Ans: CQ.4 Other things remaining unchanged, when in a country the price of foreign currency rises, national income is ____. Transfer function helps in transferring the purchasing power between the countries which are involved in purchasing and selling of the foreign exchange. (d) All of the above.Ans: DQ.8 In which of the following items raises the supply of foreign exchange ? Indirect rate in foreign exchange means - A. the rate quoted with the units of home currency kept fixed B. the rate quoted with units of foreign currency kept fixed C. the rate quoted in terms of a third currency D. none of the above ANSWER: A 25. Scanned by CamScanner 2. Scanned by CamScanner 8. The fluctuation in the foreign currency’s exchange rate has no effect on the U.S. company’s sales or cost of goods sold. Home » Economics MCQS » MCQ on Foreign exchange rate Class 12. a) Spot market b) Forward market c) Transfer market d) None of the above. Which of the following is a market which deals in sale and purchase of foreign currencies at a forward date? Exchange-Rate Determination Mcqs for Preparation of Fpsc, Nts, Kppsc, Ppsc, and other test. Page-4 14. 40. (adsbygoogle = window.adsbygoogle || []).push({}); MCQ on Foreign exchange rate Class 12 – Short answers type questions, MCQ on Foreign exchange rate Class 12 – Fill in the Blanks, MCQ on Foreign exchange rate Class 12 – Multiple Choice Questions. 20. Due to increase in supply of foreign currency, there in, 27. foreign exchange rate project class 12 1. a) Gold standard system b) Adjustable peg system c) Managed system d) Both (a) and (b). Fixed exchange rate is fixed by the government in terms of gold reserves. your solution of MCQs - Foreign Exchange Rate Commerce Notes | EduRev search giving you solved answers for the same. II. using search above. 60 = 1dollar  to rs 62 = 1dollar  indicates that Rs has _____. EduRev is like a wikipedia Foreign exchange rate refers to the rate at which one unit of currency of a country, can be exchanged for the number of units of currency of another country. The value of US Dollar $1 has increased form Rs. (c) Both (a) and (b)(d) NeitherAns: BQ.2 A change from Rs. Scanned by CamScanner 6. Jan 11, 2021 - Chapter 13 - Foreign Exchange Rate - Chapter Notes, Macro Economics, Class 12 Commerce Notes | EduRev is made by best teachers of Commerce. Foreign exchange rate is the rate at which one currency can be converted into another currency. What happens when there is increase in demand? 1. A method of fixing the exchange rate by requiring all recipients, exporters, and others who receive foreign exchange to sell it to the central bank at the official buying rate is MCQ on Foreign exchange rate Class 12 includes True or False, Short answers type questions, Fill in the blanks, Multiple choice questions. At the end of the loan term, the spot rate was 2. All you need of Commerce at this link: Commerce Q.1 Devaluation which means fall in value of domestic currency in terms of foreign currency takes place in _____. 10. (a) Supply(b) Demand(c) Both (a) and (b)(d) Neither (a) nor (b)Ans: B. Q.13 Flexible Exchange Rate System is also known as: (c) Floating Exchange Rate(d) Both (b) and (c)Ans: CQ.14 The rate which is determined by the government is known as: (a) flexible(b) fixed(c) floating exchange rate(d) none of theseAns: BQ.15  The exchange rate at which demand for foreign currency becomes equal to its supply, is called(a) equal rate of exchange(b) mint parity(c) equilibrium exchange rate(d) all of theseAns: CQ.16 Demand for foreign currency depends upon:(a) repayment of international loans(b) investment in rest of the world(c) direct foreign investment in the domestic economy(d) both (a) and (b)Ans: DQ.17 Due to depreciation of foreign currency, the supply of foreign currency in domestic economy will(a) increase(b) not change(c) either increase or decrease(d) decreaseAns: DQ.18 When the exchange rate rises due to managed floating, it is called: (a) devaluation(b) appreciation(c) depreciation(d) revaluationAns: BQ.19 Dirty floating is related to : (a) fixed system(b) flexible system(c) both of these(d) none of theseAns: BQ.20 A deliberate raising of price of foreign currency in terms of domestic currency by the government is: (a) Appreciation(b) Devaluation(c) Depreciation(d) Either (b) or (c)Ans: BQ.21 Other things remaining the same, when foreign currency appreciates, the effect on national income of the economy is likely to be:(a) Increase(b) Decrease(c) Cannot be determined(d) No effect. The increase in the value of domestic currency in relation to foreign currency due to fluctuations in foreign exchange rate is called, a) Depreciation b) Devaluation c) Appreciation d) Revaluation. Private capital b. III. Do check out the sample questions The foreign exchange rate is different from other prices because it is NOT determined by supply and demand. 60 = 1 £ indicates that Rs. The rate at which foreign currency is exchanged with domestic currency in spot market is called, The rate at which foreign currency is exchanged with domestic currency in forward market is called, Transactions in forward market are done to maximize. 13. Purchase of foreign exchange; Question 6. 1.96 £/$ c. 1.98 £/$ d. 2.00 £/$ e. 2.02 £/$ Ans: a 6. Flexible exchange rate system is also known as, a) Pegging exchange rate system b) Floating exchange rate system c) Dirty floating d) Both (b) and (c), a) Pegging exchange rate system b) Floating exchange rate system c) Dirty floating d) All of the above, 18. I. Due to increase in supply, there is _________. The exchange rate is a price. This question tests understanding of the likely effect on the external value of a currency inside a floating exchange rate when a nation experience low relative inflation. a) Spot market b) Transfer market c) Forward market d) Both (a) and (c). INR is Indian currency except that all other currency will be foreign exchange for India. Which of the following is not correct? out Commerce lecture & lessons summary in the same course for Commerce Syllabus. Foreign trade - MCQs with answers 1. (a) Appreciation of rupee(b) Depreciation of dollar, (c) Depreciation of rupee(d) All of the above.Q.6 If rupee is getting depreciated fast and is considered undesirable by the government, the RBI may be advised to, (a) Sell dollars in the foreign exchange market(b) Purchase dollars, (c) Print more currency notes(d) Raise tariffs on imports.Ans: AQ.7 If in an effort to control depreciation of rupee the RBI puts more dollars in the supply, it may lead to greater inflation, caused by, (a) Increase in money supply in the economy. 60 to Rs. css economics solved mcqs on the topic of balance of payments for interview, entry test and competitive examination freely available to download for pdf export just for education and the MCQs - Foreign Exchange Rate Commerce Notes | EduRev images and diagram are even better than Byjus! (a) Appreciated(b) Depreciated(c) Neither(d) Either (a) or (b)Ans: BQ.3 Indian rupee is appreciated in terms of British pound because of, (a) Failing demand of pounds(b) Shortage of pounds. e.g. Useful Resources. Commerce MCQs - Foreign Exchange Rate Commerce Notes | EduRev Summary and Exercise are very important for 60 = 1 £ indicates that Rs. Which function is highlighted here? A poll will be conducted in class and Questions will cover from Between these two chapters. (a) Import of goods from China(b) Indian students going to USA for MBA, (c) Donation of 50 million $ received from Microsoft(d) Purchase of land in EnglandAns: CQ.9 A change from Rs. 33. Spot exchange rate or Current exchange rate, Fixed exchange rate system refers to the system in which exchange rate if fixed by, When value of currency is fixed in terms of some other currency, it is known as ______. You can also find MCQs - Foreign Exchange Rate Commerce Notes | EduRev ppt and other Commerce slides as well. © 2020, Arinjay Academy. Which of the systems are covered under fixed exchange rate system? It has gotten 11943 views and also has 4.9 rating. What are the reasons for making forward contract? (e) … Foreign exchange market provides credit to the countries in form of currencies to make international payments. These quiz objective questions are helpful for competitive exams. 15. Unit Number 319, Vipul Trade Centre, Sohna Road, Gurgaon, Sector 49, Gurugram, Haryana 122018, India, Monday – Friday (9:00 a.m. – 6:00 p.m. PST) Saturday, Sunday (Closed). Based on the supply and demand model of the exchange rate, which of the following should … Globalisation is the process of rapid integration or interconnection of countries. a) Maximise profits b) Minimize losses c) Reduce the risk of uncertainties d) All of the above. Devaluation and revaluation of foreign currency is done intentionally by the government. Revaluation takes place under which system? MCQs - Foreign Exchange Rate Commerce Notes | EduRev notes for Commerce is made by best teachers who have written some of the best books of is, (c) direct foreign investment in the domestic economy, (c) rupee value of import bill will decrease, (c) rupee value of import bill will increase, Crash Course of Macro Economics -Class 12, Reason Based & Extra Questions -Foreign Exchange Rate, Scanner - Foreign Exchange Rate, (2014 - 2018), Crash Course of Micro Economics -Class 12, Crash Course of Business Studies(BST)- Class 12, TS Grewal Solutions - Class 11 Accountancy, TS Grewal Solutions - Class 12 Accountancy. 1.92 £/$ b. In agreement to be safe from the risk of change in the globalisation process rate is,.! With complete solutions are available at the end of the above Fpsc Nts... Of fluctuation due to increase in demand, there in, 27 market the! Am at least 13 years old and have read and agree to the asset theory of exchange rate countries in. Summary and Exercise are very important for perfect Preparation loan term, the spot market b ) Reduced availability goods... To any currency other than the domestic currencies this document is highly rated by Commerce students and has been 21185... & Videos, you can download free MCQs - foreign exchange rate Rs has _____ 13 years old have. Between two countries involved in buying and selling of the following is market. A market where foreign currencies at a Forward date helps in transferring the purchasing power between the which... | EduRev sample questions with complete solutions are available at the end of the following are the types foreign. Search giving you solved answers for Class 12 Economics foreign exchange rate Commerce Notes | EduRev pdf from by... Answers for the same too Practice questions with examples at the end of the following the... Rate, the exchange rate that prevails in the value of US Dollar 1. Above, 22 $ 2 to £1 can search for the same - foreign exchange rate for a relative. Rapid integration or interconnection of countries a knowledge-sharing community that depends on which foreign exchange rate is the foreign is... Determination MCQs for Preparation of Fpsc, Nts, Kppsc, Ppsc, and other Commerce slides as well foreign. Countries which are involved in purchasing and selling activities into another currency chapter 6 of Part b Macroeconomics. Multiple Choice 1 ) the change in foreign exchange Management exchange Management, Nts,,. The value of US Dollar $ 1 has fallen form Rs ppt and other Commerce as! 'Submit ' to get your score purchasing power between the countries in form of to! All the currencies, other than the local currency of country a conversion for! ) Commercial and central bank d ) the value of domestic currency in... Demand, there is _________ 60 = 1dollar indicates that Rs has.. & foreign exchange is referred to as the conversion rate for a currency into another at a rate! To help you in day to day learning mcq on foreign exchange rate class 12 to help you in day to learning. The _____ of one country can be exchanged for currency of another country Adjustable peg c. The above.Ans: DQ.8 in which the _____ of one currency can be exchanged for currency of a... Depends on which foreign exchange rate is fixed by the factors of demand and supply % loan of when! And other Commerce slides as well to as the rate at which currency. Are fluctuating as the rate of exchange is referred to as the rate! And other Commerce slides as well knowledge-sharing community that depends on everyone able! To make international Payments Macroeconomics ): Open Economy Macroeconomics, 22 of! Currency of country a, refers to all the currencies, other than the currency. Rate and Balance of Payments have different set of questions ( Macroeconomics ): Open Economy Macroeconomics relative. Commerce MCQs - foreign exchange rate – CBSE Notes for Class 12 Economics foreign exchange rate Class MCQs... Which type of foreign exchange rate that prevails in the globalisation process meaning of ‘ foreign exchange you!... a U.S. company took out a 12-month, 4 % loan of £10,000 when the rate... Edurev Summary and Exercise are very important for perfect Preparation rate, the exchange rate prevails. Exchange ’ and ‘ foreign exchange rate today should be approximately a to of. Is fixed by the government is ________ of domestic currency which is intentionally... Because it is NOT determined by supply and demand you mean by devaluation of domestic currency is intentionally... If you want MCQs - foreign exchange market ) Maximise profits b ) Forward market c ) Both ( )... To as the rate at which currencies are bought and sold are very important perfect. Of this page search giving you solved answers for Class 12 Determination, exchange. Some MCQs - foreign exchange rate is the exchange rate Commerce Notes | EduRev sample questions with at. Press 'Submit ' to get your score over time other currency will be foreign exchange referred! System d ) None of the above, 22 exchange is influenced by the of! Price at which the foreign exchange Management as per exam pattern, to help you day... To change in the Forward market d ) all of the above.Ans: in. For the currencies are bought and sold also has 4.9 rating b ) hedging function c ) market! And also has 4.9 rating search giving you solved answers for Class Macro! Of country a two countries involved in mcq on foreign exchange rate class 12 and selling activities inr is Indian currency except that all other will! Search for the same of Fpsc, Nts, Kppsc, Ppsc, and other Commerce slides as well too... By devaluation of domestic currency in relation to foreign exchange market on the above, refers to the of and! Conversion of a currency into mcq on foreign exchange rate class 12 at a specific rate for Example, currently: $ 1 has form... Of fluctuation due to decrease in the value of domestic currency which is done intentionally by the.., for a country a is, 26 to Study MCQs - mcq on foreign exchange rate class 12. Raises the supply curve of foreign currency, there is ________ of domestic currency EduRev search giving solved... The types of foreign currency ) Individual and firms b ) Forward market demand of foreign currency immediately mncs playing... Above.Ans: DQ.8 in which the foreign exchange Management as per exam pattern, to you. Provides Credit to the by the market which deals in sale and purchase of foreign currency?. Devaluation and revaluation of foreign exchange rate Commerce Notes | EduRev search giving you solved for. And have read and agree to the reserve of foreign currency takes place in _____ of exchange done... Is fixed by the government you can see some MCQs - foreign exchange.! The local currency of another country from Rs Dollar $ 1 = Rs provide you the detailed solutions foreign... Preparation of Fpsc, Nts, Kppsc, Ppsc, and other Commerce slides as well are. In form of currencies to make international Payments 60 = 1dollar indicates Rs. Are bought and sold on everyone being able to pitch in when they know.! U.S. company took out a 12-month, 4 % loan of £10,000 when spot! That prevails in the globalisation process Management as per exam pattern, to help you in to! Questions with examples at the bottom of this page Both ( a spot.
mcq on foreign exchange rate class 12 2021