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WorksheetsForeign exchange
Total questions: 10
Worksheet time: 5mins
FOREX is
Foreign currency
Foreign country
a Share market
FOREX RATE is
Domestic currency
Value of domestic currency in terms of foreign currency
foreign currency
Under which system Demand and supply for FOREX determines the exchange rate
Flexible exchange rate
Fixed exchange rate
Both
Managed floating system is
flexible system of exchange rate
mixture of fixed exchange rate and fixed exchange rate
A system managed by a foreign country
Depreciation is
Fall in the value of domestic currency in terms of foreign currency
Rise in the value of domestic currency in terms of foreign currency
none
Devaluation is
Fall in the value of domestic currency in terms of foreign currency as a deliberate step adopted by the govt. under Fixed exchange rate system
Rise in the value of domestic currency in terms of foreign currency as a deliberate step adopted by the govt. under Fixed exchange rate system
Fall in the value of domestic currency in terms of foreign currency as a deliberate step adopted by the govt. under FLEXIBLE exchange rate system
Appreciation of domestic currency will
Encourage imports
Encourage Exports
Discourage imports
Under flexible system exchange rate is determined where
Demand for FOREX=Supply of FOREX
Demand for Forex > Supply of FOREX
By Government
Which of the following is a source of FOREX supply
Imports
Exports
Direct purchase in abroad
Stability is a merit of
Fixed exchange rate system
Flexible exchange rate system
Both
