CUET-PG SERIES Economics
Foreign Exchange Market
4 previous year questions.
Volume: 4 Ques
Yield: Medium
High-Yield Trend
1
2025 3
2023 Chapter Questions 4 MCQs
01
PYQ 2023
medium
economics ID: cuet-pg-
Suppose massive capital outflows cause nominal exchange rate to depreciate by 10%. At the same time, foreign and domestic price levels rise by 5% and 20% respectively. What will be the approximate change in real exchange rate?
1
Depreciation by 2.5%
2
Depreciation by 5%
3
Appreciation by 25%
4
Depreciation by 25%
02
PYQ 2023
medium
economics ID: cuet-pg-
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R
Assertion A: There is an inverse relationship between the demand of foreign exchange and the exchange rate.
Reason R: A higher exchange rate implies higher prices of foreign goods resulting in lower demand for foreign goods and lower demand for foreign exchange.
In the light of the above statements, choose the correct answer from the options given below
Assertion A: There is an inverse relationship between the demand of foreign exchange and the exchange rate.
Reason R: A higher exchange rate implies higher prices of foreign goods resulting in lower demand for foreign goods and lower demand for foreign exchange.
In the light of the above statements, choose the correct answer from the options given below
1
Both A and R are true and R is the correct explanation of A
2
Both A and R are true but R is NOT the correct explanation of A
3
A is true but R is false
4
A is false but R is true
03
PYQ 2023
medium
economics ID: cuet-pg-
Which of the following statements are correct?
A. Under fixed exchange rates and perfect capital mobility, a country cannot pursue an independent monetary policy.
B. Under flexible exchange rates and perfect capital mobility, a country can not pursue independent fiscal policies.
C. Under fixed exchange rates and perfect capital mobility, fiscal expansion is extremely effective.
D. Under flexible exchange rate and perfect capital mobility, a country can pursue an independent monetary policy.
E. Both under fixed and flexible exchange rates, there are no constraints on pursuing fiscal or monetary policies independently.
Choose the correct answer from the options given below:
A. Under fixed exchange rates and perfect capital mobility, a country cannot pursue an independent monetary policy.
B. Under flexible exchange rates and perfect capital mobility, a country can not pursue independent fiscal policies.
C. Under fixed exchange rates and perfect capital mobility, fiscal expansion is extremely effective.
D. Under flexible exchange rate and perfect capital mobility, a country can pursue an independent monetary policy.
E. Both under fixed and flexible exchange rates, there are no constraints on pursuing fiscal or monetary policies independently.
Choose the correct answer from the options given below:
1
A and C only
2
A, C and D only
3
B and D only
4
B and E only
04
PYQ 2025
medium
economics ID: cuet-pg-
Match List-I with List-II Choose the correct answer from the options given below:
1
(A) - (II), (B) - (I), (C) - (III), (D) - (IV)
2
(A) - (I), (B) - (II), (C) - (III), (D) - (IV)
3
(A) - (III), (B) - (IV), (C) - (I), (D) - (II)
4
(A) - (IV), (B) - (III), (C) - (II), (D) - (I)
About Foreign Exchange Market - CUET-PG
Foreign Exchange Market is a vital chapter for CUET-PG aspirants. Mastering the concepts covered in this chapter is essential for securing a top rank.
By rigorously practicing the previous year questions associated with this chapter, you can identify high-yield topics, understand the examiner's perspective, and boost your confidence during the actual exam.
Frequently Asked Questions
Why focus on Foreign Exchange Market PYQs?
Analyzing PYQs for this specific chapter reveals the most frequently tested concepts and the typical complexity of questions, allowing you to tailor your study plan efficiently.
How to best use this analysis?
Review the topic breakdown to see which sub-topics within Foreign Exchange Market carry the most weight. Then, tackle the questions iteratively to solidify your understanding.