MCQsDrive | MCQsDrive

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.

Under a system of floating exchange rates there is a general tendency for ?

A exchange rates to be insensitive to the differential rates of inflation between countries

B the currencies of relatively high-inflation countries to depreciate

C the currencies of relatively high inflation countries to appreciate

D the currencies of relatively low inflation countries to depreciate

Review Detailed Answer

Correct Answer: the currencies of relatively high-inflation countries to depreciate

The rise in value of one currency relative to another is ?

A a weakening of a currency

B A depreciation of a currency

C An appreciation of a currency

D a debasement of a currency

Review Detailed Answer

Correct Answer: An appreciation of a currency

A fiscal expansion in the UK ?

A has no predictable effect on the price of the pound sterling?

B does not affect the price of the pound sterling

C tends to appreciate the pound sterling

D tends to depreciate the pound sterling

Review Detailed Answer

Correct Answer: tends to appreciate the pound sterling

Exchange rates that are determined by the unregulated forces of supply and demand are ?

A floating exchange rates

B pegged exchange rates

C managed exchange rates

D fixed exchange rates

Review Detailed Answer

Correct Answer: floating exchange rates

The agreements that were reached at the Bretton Woods conferences in 1944 established a system ?

A of essentially fixed exchange rates under which each country agreed to intervene in the foreign exchange market when necessary to maintain the agreed upon value of its currency

B in which the value of currencies was fixed in terms of a specific number of ounces of gold, which in turn determined their values in international trading

C of floating exchange rates determined of the supply and demand of one nation’s currency relative to the currency of other nations

D That prohibited governments from intervening in the foreign exchange markets

Review Detailed Answer

Correct Answer: of essentially fixed exchange rates under which each country agreed to intervene in the foreign exchange market when necessary to maintain the agreed upon value of its currency

The price of one country’s currency in terms of another country’s currency is the ?

A exchange rate

B balance of trade

C terms of trade

D currency valuation

Review Detailed Answer

Correct Answer: exchange rate

A difference between forward and futures contracts is that ?

A forward contracts occur in a specific locations-for example, the Chicago Mercantile Exchange

B futures contracts have negotiable delivery dates

C forward contracts can be tailored in amount and delivery date to the need of importers of exporters

D futures contracts involve no brokerage fees or other transactions costs

Review Detailed Answer

Correct Answer: forward contracts can be tailored in amount and delivery date to the need of importers of exporters

Currency speculation is _____ if speculators bet against market forces that cause exchange fluctuations, thus moderating such fluctuations ?

A destabilizing

B stabilizing

C inflationary

D deflationary

Review Detailed Answer

Correct Answer: stabilizing

If the exchange rate is 11 Mexican pesos per U.S dollar, then it takes _______ to buy 1 peso?

A $0.0909

B $0.1002

C $0.2826

D $1.1024

Review Detailed Answer

Correct Answer: $0.0909

Suppose that Boeing is to receive payment in euros in 6 month and wants to engage in hedging the firm would _______ euros on the 6-month forward market in order to protect itself from a/an of the euro?

A sell; appreciation

B sell; depreciation

C buy; depreciation

D buy; appreciation

Review Detailed Answer

Correct Answer: sell; depreciation

« Previous
Next »

Showing 1 to 10 of 43 results

Contact Info

Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

Under a system of floating exchange rates there is a general tendency for ?

The rise in value of one currency relative to another is ?

A fiscal expansion in the UK ?

Exchange rates that are determined by the unregulated forces of supply and demand are ?

The agreements that were reached at the Bretton Woods conferences in 1944 established a system ?

The price of one country’s currency in terms of another country’s currency is the ?

A difference between forward and futures contracts is that ?

Currency speculation is _____ if speculators bet against market forces that cause exchange fluctuations, thus moderating such fluctuations ?

If the exchange rate is 11 Mexican pesos per U.S dollar, then it takes _______ to buy 1 peso?

Suppose that Boeing is to receive payment in euros in 6 month and wants to engage in hedging the firm would _______ euros on the 6-month forward market in order to protect itself from a/an of the euro?