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Economics Mcqs 4423 MCQs [All-Courses]

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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.

All Topics  4423

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
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
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
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
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
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
Correct Answer: sell; depreciation
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
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
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
Correct Answer: forward transaction
The reduction or covering of foreign exchange risk is called ?
A hedging
B speculation
C intervention
D arbitrage
Correct Answer: hedging
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