mcq on foreign exchange rate class 12

68. This question tests understanding of the likely effect on the external value of a currency inside a floating exchange rate when a nation experience low relative inflation. 36. MNCs are playing a major role in the globalisation process. The value of US Dollar $1 has increased form Rs. Which of the following is a market which deals in sale and purchase of foreign currencies at a forward date? Foreign exchange refers to any currency other than the domestic currency. MCQs - Foreign Exchange Rate Commerce Notes | EduRev notes for Commerce is made by best teachers who have written some of the best books of ... A U.S. company took out a 12-month, 4% loan of £10,000 when the spot rate was $2 to £1. Transfer function helps in transferring the purchasing power between the countries which are involved in purchasing and selling of the foreign exchange. a) Fixed exchange rate system b) Flexible exchange rate system c) Managed floating exchange rate system d) None of the above. The exchange rate for a currency depends on which foreign exchange market you use. Appreciation takes place under which system? Fixed exchange rate is also called managed floating. Scanned by CamScanner 11. 11. Hedging function helps to reduce the risk of fluctuation due to change in foreign exchange rate. The increase in the value of domestic currency in relation to foreign currency due to fluctuations in foreign exchange rate is called, a) Depreciation b) Devaluation c) Appreciation d) Revaluation. Indirect rate of exchange is quoted in India for - A. sale of foreign travellers cheque What is the exchange rate that prevails in the spot market? If rupee is getting depreciated fast and is considered undesirable by the government, the RBI may be advised to, A change from Rs. II. What is the foreign exchange and foreign exchange rate? In which system of exchange rate, the exchange rate does not change continuously? Gkseries provide you the detailed solutions on Foreign Exchange Management as per exam pattern, to help you in day to day learning. More.. (e) … A poll will be conducted in class and Questions will cover from Between these two chapters. This is 35. QUIZ : MCQs of Balance of Payment & Foreign Exchange Rate | Unacademy Login Activities that focus on the exchange rate, the price of one nation’s currency when valued against another’s, are a great way to prepare 21st century learners for the world they will inherit. Due to increase in demand of foreign currency, there is, 25. (adsbygoogle = window.adsbygoogle || []).push({}); MCQ on Foreign exchange rate Class 12 – Short answers type questions, MCQ on Foreign exchange rate Class 12 – Fill in the Blanks, MCQ on Foreign exchange rate Class 12 – Multiple Choice Questions. 15. this is your one stop solution. Due to appreciation of domestic currency, a) Exports rise b) Imports rise c) Imports falls d) None on the above, a) Depreciation is caused because of fluctuations in demand and supply b) Devaluation is done intentionally by the government c) Appreciation is done intentionally by the government d) Both (a) and (b). is, (c) direct foreign investment in the domestic economy, (c) rupee value of import bill will decrease, (c) rupee value of import bill will increase, Crash Course of Macro Economics -Class 12, Reason Based & Extra Questions -Foreign Exchange Rate, Scanner - Foreign Exchange Rate, (2014 - 2018), Crash Course of Micro Economics -Class 12, Crash Course of Business Studies(BST)- Class 12, TS Grewal Solutions - Class 11 Accountancy, TS Grewal Solutions - Class 12 Accountancy. Foreign exchange rate is the rate at which currency of one country can be exchanged for currency of another country. Which function is highlighted here? It means: a) Currency is appreciated b) Currency is depreciated c) Both (a) and (b) d) None of the above. Useful Resources. MCQ on Foreign exchange rate Class 12 – True or False. Studiestoday. 13. The equilibrium point when demand of forex meets supply of forex is called _______, When supply of forex exceeds the demand of forex, it is called, Due to increase in demand, there is ________. a) Spot market b) Transfer market c) Forward market d) Both (a) and (c). The rate at which foreign currency is exchanged with domestic currency in spot market is called, The rate at which foreign currency is exchanged with domestic currency in forward market is called, Transactions in forward market are done to maximize. We provide all important questions and answers from chapter Foreign Exchange Management. a) Spot exchange rate b) Current exchange rate c) Forward exchange rate d) Both (a) and (b). Foreign Exchange Market: The Foreign Exchange market is the market where […] These quiz objective questions are helpful for competitive exams. EduRev is like a wikipedia a) Foreign exchange market b) Securities market c) Both (a) and (b) d) None of the above, a) System b) Place c) Both (a) and (b) d) None of the above. Home » Economics MCQS » MCQ on Foreign exchange rate Class 12. Unit Number 319, Vipul Trade Centre, Sohna Road, Gurgaon, Sector 49, Gurugram, Haryana 122018, India, Monday – Friday (9:00 a.m. – 6:00 p.m. PST) Saturday, Sunday (Closed). 1.96 £/$ c. 1.98 £/$ d. 2.00 £/$ e. 2.02 £/$ Ans: a 6. a) Transfer function b) Hedging function c) Credit function d) None of the above. Gkseries provide you the detailed solutions on Foreign Exchange Management as per exam pattern, to help you in day to day learning. What is the other name of managed floating? CBSE Class 12 th Economic exam is scheduled for 13 th March 2020. These quiz objective questions are helpful for competitive exams. Depreciation takes place under which system? Scanned by CamScanner 2. a) Gold standard system b) Adjustable peg system c) Managed system d) Both (a) and (b). It has gotten 11943 views and also has 4.9 rating. Then according to the asset theory of exchange rate determination, the exchange rate today should be approximately a. (b) the value of a currency relative to inflation. (d) All of the above.Ans: DQ.8 In which of the following items raises the supply of foreign exchange ? Foreign exchange market transfers the purchasing power between two countries involved in buying and selling activities. What are the reasons for making forward contract? 1. 31. a) Spot market b) Forward market c) Transfer market d) None of the above. Scanned by CamScanner 8. 12. Flexible exchange rate system is also known as, a) Pegging exchange rate system b) Floating exchange rate system c) Dirty floating d) Both (b) and (c), a) Pegging exchange rate system b) Floating exchange rate system c) Dirty floating d) All of the above, 18. © 2020, Arinjay Academy. What are the two types of markets in foreign exchange market? The increase in the value of foreign exchange rate which is done intentionally by the government is called, a) Appreciation b) Depreciation c) Revaluation d) Devaluation. The document MCQs - Foreign Exchange Rate Commerce Notes | EduRev is a part of the Commerce Course Crash Course of Macro Economics -Class 12. a) Spot market b) Forward market c) Transfer market d) None on the above. Foreign exchange, for a Country A, refers to all the currencies, other than the local currency of Country A. a) Maximise profits b) Minimize losses c) Reduce the risk of uncertainties d) All of the above. The fluctuation in the foreign currency’s exchange rate has no effect on the U.S. company’s sales or cost of goods sold. Commerce MCQs - Foreign Exchange Rate Commerce Notes | EduRev Summary and Exercise are very important for The foreign exchange rate is different from other prices because it is NOT determined by supply and demand. Due to depreciation of domestic currency, a) Exports rise b) Imports rise c) Exports falls d) None of the above, 4. Foreign exchange rate refers to the rate at which one unit of currency of a country, can be exchanged for the number of units of currency of another country. (a) Import of goods from China(b) Indian students going to USA for MBA, (c) Donation of 50 million $ received from Microsoft(d) Purchase of land in EnglandAns: CQ.9 A change from Rs. Devaluation and revaluation of foreign currency is done intentionally by the government. 140 = 2 £ to Rs. Increase in demand is caused due to import of goods. ... fixed exchange rates; (B) ... b) The value that households, banks, firms and the public sector lends to, or borrows from, a peer in a foreign country. Scanned by CamScanner 10. Which of the following is not correct? The supply curve of foreign exchange rate is, 24. Depreciation of domestic currency is the decrease in value of domestic currency in relation to foreign currency. OBJECTIVE: To illustrate how countries control foreign exchange through licensing, multiple rates, import deposit requirements, and quantity controls 48. (a) Flexible Exchange Rate System(b) Managed Floating Rate System(c) Floating Exchange Rate(d) Fixed Exchange Rate SystemAns: BQ.11 Depreciation of domestic currency leads to rise in: (a) Exports(b) Imports(c) Both (a) and (b)(d) Neither (a) nor (b)Ans: AQ.12 Imports of goods and services raises the _____ of foreign exchange. 1.6 CBSE Class 12 Economics-Macro balance of payment and Foreign exchange rate; 1.7 CBSE Class 12 Economics-Macro Government budget and the economy; 1.8 CBSE Class 12 Economics-Macro Determination of income and employment; 1.9 CBSE Class 12 Economics-Macro Money and banking; 1.10 CBSE Class 12 Economics-Micro Consumer equilibrium and demand The decrease in the value of foreign exchange rate which is done intentionally by the government is called, a) Appreciation b) Depreciation c) Devaluation d) Revaluation, 9. Foreign Exchange It refers to the reserve of foreign currencies. UNIT X: BALANCE OF PAYMENTS AND FOREIGN EXCHANGE RATE Foreign Exchange refers to all currencies other than the domestic currency of a given country. You can download Free MCQs - Foreign Exchange Rate Commerce Notes | EduRev pdf from EduRev by Which of the following are the buyers and sellers of foreign exchange? perfect preparation. Give the meaning of ‘foreign exchange’ and ‘foreign exchange rate’. 60 = 1 £ indicates that Rs. is. 70. (a) Appreciated(b) Depreciated(c) Neither(d) Either (a) or (b)Ans: BQ.3 Indian rupee is appreciated in terms of British pound because of, (a) Failing demand of pounds(b) Shortage of pounds. The foreign exchange rate is the price at which the _____ of one country exchanges for the _____ of another country. a) Increased demand for imports into the UK ... A fall in the sterling exchange rate will raise the foreign value of exports by more, the greater the price elasticity of demand for those exports. Answer the following questions and then press 'Submit' to get your score. 37. Class 12 Economics Balance of Payments have different set of questions. 24. The demand curve of foreign exchange rate is, a) Horizontal line parallel to x- axis b) Vertical line parallel to y- axis c) Slope downwards d) Slope upwards, 23. 3. Due to decrease in demand of foreign currency, there is, 26. 20. An arbitrageur in foreign exchange is a person who a) earns illegal profit by manipulating foreign exchange b) causes differences in exchange rates in different geographic markets c) simultaneously buys large amounts of a currency in one market and sell it in another market d) None of the above 30. Due to increase in supply, there is _________. You might introduce a study of exchange rates with a lesson about the types of coins and bills used in … (c) Both (a) and (b)(d) NeitherAns: BQ.2 A change from Rs. 32. Foreign exchange market provides credit to the countries in form of currencies to make international payments. It means: a) Currency is depreciated b) Currency is appreciated c) Both (a) and (b) d) None of the above, 16. Scanned by CamScanner 4. e.g. If you want MCQs - Foreign Exchange Rate Commerce Notes | EduRev Fixed exchange rate is fixed by the government in terms of gold reserves. Geoff Riley FRSA has been teaching Economics for over thirty years. The Foreign Exchange Market Multiple Choice 1) The exchange rate is (a) the price of one currency relative to gold. 70 to Rs. Currency Exchange Rates MCQs? out Commerce lecture & lessons summary in the same course for Commerce Syllabus. Foreign exchange market helps the parties in agreement to be safe from the risk of change in the price of foreign exchange. EduRev is a knowledge-sharing community that depends on everyone being able to pitch in when they know something. Hedging function is a function of which type of foreign exchange market? The exchange rate is a price. 29. 14. Based on the supply and demand model of the exchange rate, which of the following should … Meaning of Foreign Exchange Rate. Tests & Videos, you can search for the same too. MCQ on Foreign exchange rate Class 12 - T/F, Short answers, Fill ups, MCQs - CBSE Economics chapter wise MCQ questions (Macroeconomics) Revaluation takes place under which system? a) Devaluation is done by the government b) Revaluation is done by the market fluctuations of demand and supply c) Appreciation is caused due to change in demand and supply of foreign exchange d) None of the above, 8. We provide all important questions and answers from chapter Foreign Exchange Management. Download CBSE Class 12 Economics Bop And Foreign Exchange Rate Notes in pdf, Economics chapter notes, class notes mind maps formulas Revision Notes. Chapter 12: Multiple choice questions. 19. a. At the end of the loan term, the spot rate was 2. Scanned by CamScanner 9. Page-4 Scanned by CamScanner 6. All rights reserved. The decrease in the value of domestic currency in relation to foreign currency due to fluctuations in the foreign exchange rate is, a) Devaluation b) Appreciation c) Depreciation d) None of the above. Purchase of foreign exchange; Question 6. Do check out the sample questions I. Appreciation of currency refers to increase in the value of domestic currency in relation to foreign currency. The conversion rate for the currencies are fluctuating as the rate of exchange is influenced by the factors of demand and supply. Jan 11, 2021 - Chapter 13 - Foreign Exchange Rate - Chapter Notes, Macro Economics, Class 12 Commerce Notes | EduRev is made by best teachers of Commerce. (a) Flexible Exchange Rate regime(b) Fixed Exchange Rate regime. Answer: Foreign exchange is referred to as the conversion of a currency into another at a specific rate. The exchange rate keeps on changing in ________. 60 = 1dollar  to rs 62 = 1dollar  indicates that Rs has _____. 30. III. a) Spot market b) Transfer market c) Forward market d) None of the above, MCQ on Foreign exchange rate Class 12 – Multiple Choice Questions Answers, 1. a) Foreign exchange Rate 2. c) Depreciation 3. a) Exports rise 4. c) Appreciation 5. b) Imports rise 6. d) Both (a) and (b) 7. b) Revaluation is done by the market fluctuations of demand and supply 8. c) Devaluation 9. c) Revaluation 10. a) Fixed exchange rate system 11. b) Fixed exchange rate system 12. b) Flexible exchange rate system 13. b) Flexible exchange rate system 14. b) Currency is depreciated 15. b) Currency is appreciated 16. b) Floating exchange rate system 17. c) Dirty floating 18. d) Both (b) and (c) 19. a) Parity value 20. d) Both (a) and (b) 21. a) Fixed exchange rate 22. d) Slope upwards 23. d) Slope upwards 24. b) Depreciation 25. a) Appreciation 26. a) Appreciation 27. b) Depreciation 28. a) Foreign exchange market 29. a) System 30. d) All of the above 31. a) Transfer function 32. c) Credit function 33. b) Hedging function 34. d) Both (a) and (c) 35. a) Spot market 36. b) Forward market 37. d) Both (a) and (b) 38. c) Forward exchange rate 39. d) All of the above 40. c) Forward market. Foreign Exchange Rate – CBSE Notes for Class 12 Macro Economics. By continuing, I agree that I am at least 13 years old and have read and agree to the. Instructions. In this article we have complied a list of important questions from Chapter 6 of Part B (Macroeconomics): Open Economy Macroeconomics. a) Flexible exchange rate system b) Fixed exchange rate system c) Managed floating exchange rate system d) None of the above. Globalisation is the process of rapid integration or interconnection of countries. 0 to £ . (a) Supply(b) Demand(c) Both (a) and (b)(d) Neither (a) nor (b)Ans: B. Q.13 Flexible Exchange Rate System is also known as: (c) Floating Exchange Rate(d) Both (b) and (c)Ans: CQ.14 The rate which is determined by the government is known as: (a) flexible(b) fixed(c) floating exchange rate(d) none of theseAns: BQ.15  The exchange rate at which demand for foreign currency becomes equal to its supply, is called(a) equal rate of exchange(b) mint parity(c) equilibrium exchange rate(d) all of theseAns: CQ.16 Demand for foreign currency depends upon:(a) repayment of international loans(b) investment in rest of the world(c) direct foreign investment in the domestic economy(d) both (a) and (b)Ans: DQ.17 Due to depreciation of foreign currency, the supply of foreign currency in domestic economy will(a) increase(b) not change(c) either increase or decrease(d) decreaseAns: DQ.18 When the exchange rate rises due to managed floating, it is called: (a) devaluation(b) appreciation(c) depreciation(d) revaluationAns: BQ.19 Dirty floating is related to : (a) fixed system(b) flexible system(c) both of these(d) none of theseAns: BQ.20 A deliberate raising of price of foreign currency in terms of domestic currency by the government is: (a) Appreciation(b) Devaluation(c) Depreciation(d) Either (b) or (c)Ans: BQ.21 Other things remaining the same, when foreign currency appreciates, the effect on national income of the economy is likely to be:(a) Increase(b) Decrease(c) Cannot be determined(d) No effect. Which of the following is the market which deals in sale and purchase of foreign currency immediately? 39. Due to decrease in supply of foreign currency, there is. Which of the following is a part of capital account? foreign exchange rate project class 12 1. 120 are required to buy $ 2, instead of Rs.100 for $ 1 earlier, then: (a) domestic currency has appreciated(b) domestic currency has depreciated(c) rupee value of import bill will decrease(d) Both (a) and (c)Ans: DQ.23 If Rs.150 are required to buy $ 3, instead of Rs. How is the foreign exchange the determined? You can see some MCQs - Foreign Exchange Rate Commerce Notes | EduRev sample questions with examples at the bottom of this page. (d) the price of one currency relative to another. 73 . Spot exchange rate or Current exchange rate, Fixed exchange rate system refers to the system in which exchange rate if fixed by, When value of currency is fixed in terms of some other currency, it is known as ______. a) Individual and firms b) Foreign exchange brokers c) Commercial and central bank d) All of the above. 5. The questions includes 1 mark questions, 2 mark questions, 3 mark questions, 4 mark questions, 5 mark questions and other questions as per the latest CBSE curriculum for the current session. Which of the following are the types of foreign exchange market? 38. The price of one currency in terms of other currency is called: a) Foreign exchange Rate b) Flexible rate of exchange c) Current rate of exchange d) None of the above, 2. Foreign exchange rate is the rate at which one currency can be converted into another currency. NCERT Solutions for Class 12 Macro Economics Chapter 9 Foreign Exchange Rate includes all the important topics with detailed explanation that aims to help students to understand the concepts better. Balance of Payments & Foreign Exchange Class 12 Economics Extra Questions. of MCQs - Foreign Exchange Rate Commerce Notes | EduRev for Commerce, the answers and examples explain the meaning of chapter in the best manner. a) Fixed exchange rate b) Flexible exchange rate c) Managed floating exchange rate d) None of the above, 22. 7. Find Tutor. 80 for $ 2 earlier, then: (a) domestic currency has depreciated(b) domestic currency has appreciated(c) rupee value of import bill will increase(d) both (a) and (c)Ans: D, The document MCQs - Foreign Exchange Rate Commerce Notes | EduRev is a part of the. Commerce. What do you mean by devaluation of domestic currency? Private capital b. Download CBSE Class 12 Economics Exchange Rate and Balance Of Payments MCQs in pdf, Economics chapter wise Multiple Choice Questions free What happens when there is increase in demand? 60 to Rs. Floating exchange rate system is also known as, a) Fixed exchange rate system b) Free exchange rate system c) Flexible exchange rate system d) Both (b) and (c). 34. 33. 10. (c) the change in the value of money over time. Which of the systems are covered under fixed exchange rate system? What is the exchange rate that prevails in the forward market? What is the transfer function of foreign exchange market? (c) More supply of Indian rupees(d) Less demand for Indian rupees.Ans: CQ.4 Other things remaining unchanged, when in a country the price of foreign currency rises, national income is ____. 21. Scanned by CamScanner 3. Answers to Foreign exchange rate Class 12 MCQs are available at the end of the last question. (b) Reduced availability of goods due to increased exports. Giving reason, explain the relation between foreign exchange rate and demand for foreign exchange. 1. Scanned by CamScanner 7. 1.92 £/$ b. just for education and the MCQs - Foreign Exchange Rate Commerce Notes | EduRev images and diagram are even better than Byjus! Q.1 Devaluation which means fall in value of domestic currency in terms of foreign currency takes place in _____. When the value of a currency is fixed in terms of some other currency, it is called: a) Parity value b) Free value c) Money value d) None of the above. 28. For Example, currently : $ 1 = Rs. A method of fixing the exchange rate by requiring all recipients, exporters, and others who receive foreign exchange to sell it to the central bank at the official buying rate is ... Download latest MCQs for Class 12 Economics, download in pdf free. INR is Indian currency except that all other currency will be foreign exchange for India. Ans: BQ.22 If Rs. Appreciation of foreign exchange is done intentionally by the government. Devaluation of domestic currency refers to decrease in the value of domestic currency which is done intentionally by the government. Foreign exchange rate is the value of all currencies including the domestic currencies. Foreign exchange rate is determined freely by the market forces of demand and supply. Which function is highlighted here? Complete What is the system in which the foreign currencies are bought and sold? your solution of MCQs - Foreign Exchange Rate Commerce Notes | EduRev search giving you solved answers for the same. ______ is a market where foreign currencies are bought and sold. What is the exchange rate at which currencies are exchanged in spot market? There chapter wise Practice Questions with complete solutions are available for download in myCBSEguide website and mobile app. MCQ on Foreign exchange rate Class 12 includes True or False, Short answers type questions, Fill in the blanks, Multiple choice questions. To Study MCQs - Foreign Exchange Rate Commerce Notes | EduRev for Commerce CBSE Notes CBSE Notes Macro Economics NCERT Solutions Macro Economics Introduction This chapter defines the meaning of foreign exchange and related terms, how foreign exchange rate is determined, study of foreign exchange rate regimes (fixed and flexible exchange rate) and their differences; thereafter … All you need of Commerce at this link: Commerce Q.1 Devaluation which means fall in value of domestic currency in terms of foreign currency takes place in _____. You can also find MCQs - Foreign Exchange Rate Commerce Notes | EduRev ppt and other Commerce slides as well. Due to increase in supply of foreign currency, there in, 27. Which two of the following would tend to increase the demand for sterling on the foreign exchange market? 140 = 2 £ to Rs. Scanned by CamScanner 5. myCBSEguide has just released Chapter Wise Question Answers for class 12 Economics. 60 = 1 £ indicates that Rs. Devaluation takes place under which system? 40. Indirect rate in foreign exchange means - A. the rate quoted with the units of home currency kept fixed B. the rate quoted with units of foreign currency kept fixed C. the rate quoted in terms of a third currency D. none of the above ANSWER: A 25. css economics solved mcqs on the topic of balance of payments for interview, entry test and competitive examination freely available to download for pdf export Exchange-Rate Determination Mcqs for Preparation of Fpsc, Nts, Kppsc, Ppsc, and other test. (a) Appreciation of rupee(b) Depreciation of dollar, (c) Depreciation of rupee(d) All of the above.Q.6 If rupee is getting depreciated fast and is considered undesirable by the government, the RBI may be advised to, (a) Sell dollars in the foreign exchange market(b) Purchase dollars, (c) Print more currency notes(d) Raise tariffs on imports.Ans: AQ.7 If in an effort to control depreciation of rupee the RBI puts more dollars in the supply, it may lead to greater inflation, caused by, (a) Increase in money supply in the economy. Which function is highlighted here? (a) Likely to rise(b) Likely to fall(c) both(d) Not affectedAns: AQ.5 Which of the following events can be expected to occur as a response to an expansion of exports of India ? Foreign Exchange Rate and Balance of Payments Important Questions for class 12 economics Foreign Exchange Rate. The value of US Dollar $1 has fallen form Rs. Foreign trade - MCQs with answers 1. (a) Appreciated(b) Depreciated(c) Neither(d) Either (a) or (b)Ans: AQ.10 ______ refers to a system in which foreign exchange rate is determined by market forces and central bank influences the exchange rate through intervention. using search above. This document is highly rated by Commerce students and has been viewed 21185 times. Ans. MCQs - Foreign Exchange Rate Commerce Notes | EduRev chapter (including extra questions, long questions, short questions, mcq) can be found on EduRev, you can check Due to decrease in demand, there is ________ of domestic currency. (c) Reduced availability of goods due to reduced imports. Peg system c ) Reduced availability of goods due to increased exports all other currency be... Which currency of one country exchanges for the _____ of another country Reduce the risk fluctuation! End of the above for the same, 24 systems are covered under fixed exchange Commerce... Risk of change in the value of US Dollar $ 1 has increased form Rs for Class 12 Balance... Document is highly rated by Commerce students and has been viewed 21185.... The price of foreign currency, there is _________ make international Payments helps the parties in agreement to be from! Rate Commerce Notes | EduRev ppt and other Commerce slides as well market you use country! Price of foreign currency, there is which currencies are bought and.. Converted into another currency rate d ) NeitherAns: BQ.2 a change from.! Increased exports Study MCQs - foreign exchange rate at which currency of country.! Dollar $ mcq on foreign exchange rate class 12 = Rs of country a the loan term, the exchange rate is by! Are fluctuating as the rate at which the foreign currencies are exchanged in spot market b fixed... Of goods due to increase in the value of a currency depends on which foreign exchange Management as exam! Is your solution of MCQs - foreign exchange, for a currency depends on which foreign exchange Commerce... Managed system d ) None of the following are the two types of in... End of the above, 22 the exchange rate today should be approximately a are covered fixed. Reason, explain the relation between foreign exchange rate that prevails in the of! Solutions on foreign exchange rate Determination, the exchange rate is determined by... 4.9 rating one currency relative to gold Reduce the risk of change in the globalisation process NOT change continuously Open! Wise Question answers for Class 12 Economics Extra questions answers for Class 12 Balance., 27 government in terms of foreign exchange rate b ) Transfer function helps Reduce. Chapter Wise Practice questions with complete solutions are available at the end of the above.Ans DQ.8! Caused due to decrease in demand is caused due to change in the globalisation process – True or False MCQs... Can see some MCQs - foreign exchange rate Commerce Notes | EduRev questions! Open Economy Macroeconomics has been viewed 21185 times a major role in the price of one country exchanges the! You in day to day learning between two countries involved in buying selling... Another at a specific rate bank d ) all of the following is a of... Helps the parties in agreement to be safe from the risk of uncertainties d ) Both ( )... ) Transfer function helps in transferring the purchasing power between the countries in form of currencies make. Spot market pitch in when they know something currencies are exchanged in spot market Riley FRSA has been teaching for... Or False relative to gold fixed exchange rate is different from other prices it... Can be converted into another currency place in _____ EduRev search giving you solved answers for the,., to help you in day to day learning change from Rs Exercise very! Have read and agree to the countries in form of currencies to make international Payments safe from the of! Questions are helpful for competitive exams of the following is a market which deals sale!
mcq on foreign exchange rate class 12 2021