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Economics Mcqs 4423 MCQs [All-Courses]

Economics MCQs cover fundamental concepts of microeconomics and macroeconomics, including demand and supply, inflation, national income, and economic policies.
This section is designed to strengthen analytical skills and conceptual understanding for competitive examinations.
Highly useful for PPSC, FPSC, NTS, OTS, KPPSC, and other testing services preparation.

Small nations whose trade and financial relationships are mainly with a single partner tend to utilize ?

A pegged exchange rates

B freely floating exchange rates

C managed floating exchange rates

D crawling exchange rates

Review Detailed Answer

Correct Answer: pegged exchange rates

Under a pegged exchange rate system which does not explain why a country would have a balance of payments deficit ?

A very high rates of inflation occur domestically

B foreigners discriminate against domestic products

C technological advance is superior abroad

D the domestic currency is undervalued relative to other currencies

Review Detailed Answer

Correct Answer: the domestic currency is undervalued relative to other currencies

Under managed floating exchange rates if the rate of inflation in the United States is less than the rate of inflation of its trading partners the dollar will likely ?

A appreciates against foreign currencies

B depreciates against foreign currencies

C be officially revalued by the government

D be officially devalued by the government

Review Detailed Answer

Correct Answer: appreciates against foreign currencies

Which exchange rate mechanism in intended to insulate the balance of payments from short-term capital movements while providing exchange rate stability for commercial transactions ?

A dual exchange rates

B managed floating exchange rates

C adjustable pegged exchange rates

D crawling pegged exchange rates

Review Detailed Answer

Correct Answer: dual exchange rates

Which exchange rate system involves a leaning against the wind|| strategy in which short-term fluctuations in exchange rates are reduced without adhering to any particular exchange rate over the long run ?

A pegged of fixed exchange rates

B adjustable pegged exchange rates

C managed floating exchange rates

D free floating exchange rates

Review Detailed Answer

Correct Answer: adjustable pegged exchange rates

Small nations with more than one major trading partner tend to peg the value of their currencies to ?

A gold

B silver

C a single currency

D a basket of currencies

Review Detailed Answer

Correct Answer: a basket of currencies

Which exchange rate system does not require monetary reserves for official exchange rate intervention ?

A floating exchange rates

B pegged exchanged rates

C managed floating exchange rates

D dual exchange rates

Review Detailed Answer

Correct Answer: floating exchange rates

Under adjustable pegged exchange rates, if the rate of inflation in the United States exceeds the rate of inflation of its trading partners ?

A U.S exports tend to rise, and imports tend to fall

B U.S imports tend to rise, and exports tend to fall

C U.S foreign exchange reserves tend to rise

D U.S foreign exchange reserves remain constant

Review Detailed Answer

Correct Answer: U.S imports tend to rise, and exports tend to fall

Which exchange rate mechanism calls for frequent redefining of the par value by small amounts to remove a payments disequilibrium ?

A dual exchange rate

B adjustable pegged exchange rates

C managed floating exchange rates

D crawling pegged exchange rates

Review Detailed Answer

Correct Answer: crawling pegged exchange rates

The exchange rate system that best characterizes the present international monetary arrangement used by industrialized countries is ?

A freely fluctuating exchange rates

B adjustable pegged exchange rates

C managed floating exchange rates

D pegged or fixed exchange rates

Review Detailed Answer

Correct Answer: managed floating exchange rates

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

Small nations whose trade and financial relationships are mainly with a single partner tend to utilize ?

Under a pegged exchange rate system which does not explain why a country would have a balance of payments deficit ?

Under managed floating exchange rates if the rate of inflation in the United States is less than the rate of inflation of its trading partners the dollar will likely ?

Which exchange rate mechanism in intended to insulate the balance of payments from short-term capital movements while providing exchange rate stability for commercial transactions ?

Which exchange rate system involves a leaning against the wind|| strategy in which short-term fluctuations in exchange rates are reduced without adhering to any particular exchange rate over the long run ?

Small nations with more than one major trading partner tend to peg the value of their currencies to ?

Which exchange rate system does not require monetary reserves for official exchange rate intervention ?

Under adjustable pegged exchange rates, if the rate of inflation in the United States exceeds the rate of inflation of its trading partners ?

Which exchange rate mechanism calls for frequent redefining of the par value by small amounts to remove a payments disequilibrium ?

The exchange rate system that best characterizes the present international monetary arrangement used by industrialized countries is ?