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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.

Riskless transactions to take advantage of profit opportunities due to a price differential or a yield differential in excess of transaction costs are called ?

A differential actions

B cash transaction

C arbitrage

D forward transactions

Review Detailed Answer

Correct Answer: arbitrage

If the bank is selling francs for $0.45, then what is the implied franc price of the dollar ?

A 2.0

B 1.999

C 2.323

D 2.222

Review Detailed Answer

Correct Answer: 2.222

An important feature of a _______ is that the holder has the right but not the obligation to buy or sell currency ?

A Swap

B foreign exchange arbitrage

C foreign exchange option

D futures market contract

Review Detailed Answer

Correct Answer: foreign exchange option

The exchange rate is kept the same across geographically separate markets by ?

A hedging

B speculation

C government regulation

D arbitrage

Review Detailed Answer

Correct Answer: arbitrage

In a supply and demand diagram for Japanese yen, with the exchange rate in dollars per yen on the vertical axis, the demand schedule for yen is drawn sloping ?

A upward

B vertical

C downward

D horizontal

Review Detailed Answer

Correct Answer: downward

The largest volume of foreign exchange trading takes place in ?

A China

B Germany

C United Kingdom

D USA

Review Detailed Answer

Correct Answer: United Kingdom

During the era of dollar appreciation from 1981 to 1985 a main reason why the dollar did not fall in value was ?

A flows of foreign investment into the United States

B rising price inflation in the United States

C a substantial decrease in U.S imports

D a substantial increase in U.S exports

Review Detailed Answer

Correct Answer: flows of foreign investment into the United States

Under a system of floating exchange rates the pound would depreciate in value if there occurs ?

A Price inflation in the United States

B an increase in U.S real income

C a decrease in the British money supply

D falling interest rates in Britain

Review Detailed Answer

Correct Answer: falling interest rates in Britain

Suppose that a Swiss television set that costs 400 francs in Switzerland cost $200 in the United States. The exchange rate between the franc and the dollar is ?

A 2 francs per dollar

B 1 franc per dollar

C $2 per franc

D $3 per franc

Review Detailed Answer

Correct Answer: 2 francs per dollar

According to the Phillips curve unemployment will return to the natural rate when ?

A Nominal wages are equal to expected wages

B Real wages are back at equilibrium level

C Nominal wages are growing faster than inflation

D Inflation is higher than the growth of nominal wages

Review Detailed Answer

Correct Answer: Nominal wages are equal to expected wages

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Economics Mcqs 4423 MCQs [All-Courses]

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All Topics 4423

Riskless transactions to take advantage of profit opportunities due to a price differential or a yield differential in excess of transaction costs are called ?

If the bank is selling francs for $0.45, then what is the implied franc price of the dollar ?

An important feature of a _______ is that the holder has the right but not the obligation to buy or sell currency ?

The exchange rate is kept the same across geographically separate markets by ?

In a supply and demand diagram for Japanese yen, with the exchange rate in dollars per yen on the vertical axis, the demand schedule for yen is drawn sloping ?

The largest volume of foreign exchange trading takes place in ?

During the era of dollar appreciation from 1981 to 1985 a main reason why the dollar did not fall in value was ?

Under a system of floating exchange rates the pound would depreciate in value if there occurs ?

Suppose that a Swiss television set that costs 400 francs in Switzerland cost $200 in the United States. The exchange rate between the franc and the dollar is ?

According to the Phillips curve unemployment will return to the natural rate when ?