CBSE Class 12 Economics Exchange Rate and Balance Of Payments MCQs with answers available in Pdf for free download. The MCQ Questions for Class 12 Economics with answers have been prepared as per the latest syllabus, NCERT books and examination pattern suggested in Standard 12 by CBSE, NCERT and KVS. Multiple Choice Questions are an important part of Term 1 and Term 2 exams for Grade 12 Economics and if practiced properly can help you to get higher marks. Refer to more Chapter-wise MCQs for NCERT Class 12 Economics and also download more latest study material for all subjects
Exchange Rate and Balance Of Payments Class 12 Economics MCQ
Class 12 Economics students should refer to the following multiple-choice questions with answers for Exchange Rate and Balance Of Payments in standard 12. These MCQ questions with answers for Grade 12 Economics will come in exams and help you to score good marks
Exchange Rate and Balance Of Payments MCQ Questions Class 12 Economics with Answers
Question : The exchange rate at which demand for foreign currency becomes equal to its supply called
- a) Equal rate of exchange
- b) Unequal rate of exchange
- c) Equilibrium rate
- d) All of these
Answer : Equilibrium rate
Question : According to adjustable peg system (or Bretton Woods System ) of Exchange Rate :
- a) Different currencies were pegged to one currency (US dollar)
- b) US dollar was assigned gold value at a fixed price
- c) Parity between two currencies was determined by the quantity of gold contained in them
- d) All of these
Answer : All of these
Question : What is the relationship between demand for foreign exchange and exchange rate ?
- a) Inverse
- b) Direct
- c) One to one
- d) No to relationship
Answer : Inverse
Question : What is the relationship between supply of foreign exchange and exchange rate?
- a) Inverse
- b) Direct
- c) One to one
- d) No to relationship
Answer : Direct
Question : Spot market is that market where in :
- a) Only spot or current transactions are handled
- b) Foreign exchange transactions are meant for future delivery
- c) Exchange rate is determined instantly
- d) Both (a) and (c)
Answer : Both (a) and (c)
Question : Forward market is that market which :
- a) Handled transactions of foreign exchange meant for future delivery
- b) Handled current transactions
- c) Handled current as well as future transactions
- d) None of these
Answer : Handled transactions of foreign exchange meant for future delivery
Question : If Rs. 150 ate required to buy $ 2, instead of Rs.100 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)
Answer : Both (a) and (c)
Question : BoP is measured as :
- a) Difference between visible items of exports and imports
- b) Difference between invisible items of exports and imports
- c) Difference between external and internal flow of gold
- d) Difference between all receipts of foreign exchange and payments of foreign exchange
Answer : Difference between all receipts of foreign exchange and payments of foreign exchange
Question : Balance of trade is measured as :
- a) Difference between import and export goods
- b) Difference between import and export services
- c) Difference between import and export of capital
- d) Difference between all export and all imports
Answer : Difference between import and export goods
Question : In which of the following categories are economic transactions of balance of trade recorded ?
- a) Visible items
- b) Invisible items
- c) Capital transfers
- d) All the above
Answer : Visible items
Question : Which of the following transactions are recorded in the current account of the balance of payments ?
- a) Import and export of goods and services
- b) Transfers from one country to the other
- c) Both (a) and (b)
- d) None of these
Answer : Both (a) and (b)
Question : Which of the following items relate to BoP which :
- a) Foreign investment
- b) Loans
- c) NRI remittance
- d) All of these
Answer : All of these
Question : Autonomous items are related to those transactions which :
- a) Are determined by motive of profit
- b) Are not concerned with the equilibrium status of BoP
- c) Both (a) and (b)
- d) None of these
Answer : Both (a) and (b)
Question : Accommodating items are those items of Bop which :
- a) Are not determined by profit motive
- b) Are conditioned by the positive or negative BoP status
- c) Deal with capital transfers only
- d) Both (a) and (b)
Answer : Both (a) and (b)
Question : Disequilibrium in balance of payments means:
- a) Surplus balance of payments
- b) Deficit balance of payments
- c) Both (a) and (b)
- d) None of these
Answer : Both (a) and (b)
Question : If balance of trade is (-) Rs.600 crore and value of exports is rs.500 crore then the value of imports will be :
- a) Rs.1,300 crore
- b) Rs. 300 crore
- c) Rs.1,100 crore
- d) Rs. 1,200 crore
Answer : Rs.1,100 crore
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