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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.

The essential feature of a _______ is that it immediately fixed the rate at which a specified amount of one currency is to be delivered in exchange for a specific amount of another at a future date ?

A forward contract

B spot contract

C money contract

D bid contract

Review Detailed Answer

Correct Answer: forward contract

The difference between bid (buying) rates and ask (selling) rates is called the ?

A profit

B arbitrage

C spread

D forward transaction

Review Detailed Answer

Correct Answer: spread

The least common type of transaction in the foreign exchange is a ?

A forward transaction

B spot transaction

C swap transaction

D None of the above

Review Detailed Answer

Correct Answer: forward transaction

The reduction or covering of foreign exchange risk is called ?

A hedging

B speculation

C intervention

D arbitrage

Review Detailed Answer

Correct Answer: hedging

Suppose there occurs an increase in the Canadian demand for Japanese computers This results in a (an) ?

A increase in the demand for yen

B decrease in the demand for yen

C increase in the supply of yen

D decrease in the Supply of yen

Review Detailed Answer

Correct Answer: increase in the demand for yen

Given the foreign currency market for the Swiss franc, the supply of franc slopes upward, because as the dollar price of the franc rises ?

A America’s demand for Swiss merchandise rises

B America’s demand for Swiss merchandise falls

C Switzerland’s demand for American merchandise rises

D Switzerland’s demand for American merchandise falls

Review Detailed Answer

Correct Answer: Switzerland’s demand for American merchandise rises

Which financial instrument provides a buyer the right to purchase or sell a fixed amount of currency at a prearranged price, within a few days to a couple of years ?

A letter a credit

B foreign currency option

C cable transfer

D bill of exchange

Review Detailed Answer

Correct Answer: foreign currency option

A depreciation of the dollar will have its most pronounced impact on imports if the demand for imports is ?

A constant

B inelastic

C elastic

D Unitary elastic

Review Detailed Answer

Correct Answer: elastic

In the early eighties, the Federal Reserve pursed a tight monetary policy. All else being equal. the impact of that policy was to interest rates in the United States relative to those in Europe and cause the dollar to _______ against European currencies?

A decrease; depreciate

B decrease; appreciate

C increase; depreciate

D increase; appreciate

Review Detailed Answer

Correct Answer: increase; appreciate

The supply of foreign currency tends to be ?

A upward sloping

B downward sloping

C vertical

D any of the above

Review Detailed Answer

Correct Answer: upward sloping

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

The essential feature of a _______ is that it immediately fixed the rate at which a specified amount of one currency is to be delivered in exchange for a specific amount of another at a future date ?

The difference between bid (buying) rates and ask (selling) rates is called the ?

The least common type of transaction in the foreign exchange is a ?

The reduction or covering of foreign exchange risk is called ?

Suppose there occurs an increase in the Canadian demand for Japanese computers This results in a (an) ?

Given the foreign currency market for the Swiss franc, the supply of franc slopes upward, because as the dollar price of the franc rises ?

Which financial instrument provides a buyer the right to purchase or sell a fixed amount of currency at a prearranged price, within a few days to a couple of years ?

A depreciation of the dollar will have its most pronounced impact on imports if the demand for imports is ?

In the early eighties, the Federal Reserve pursed a tight monetary policy. All else being equal. the impact of that policy was to interest rates in the United States relative to those in Europe and cause the dollar to _______ against European currencies?

The supply of foreign currency tends to be ?