External Sector And Currency Exchange Rate

01

PYQ 2023

easy

economics ID: cuet-ug-

The following are features of flexible exchange rate system select the correct option. (A) Give more flexibility to government. (B) Restricts countries in conducting monetary policies. (C) Government intervenes to comes gaps in BOP. (D) Automatically takes care of surplus and deficit in BOP. (E) Speculator attack on currency. Choose the correct answer from the options given below

02

PYQ 2023

medium

economics ID: cuet-ug-

The Government decreases the exchange rate in the fixed exchange rate system. What is the term used for that?

1

Appreciation

2

Devaluation

3

Depreciation

4

Revaluation

03

PYQ 2023

medium

economics ID: cuet-ug-

Match List - I with List - II. List - I List -II (A) Institution that accept public deposits (I) Issuance of currency notes (B) The central Bank of India (II) Acceptance of deposit from public (C) Function of a Central bank (III) Reserve bank of India (D) Function of Commercial bank (IV) Commercial bank Choose the correct answer from the options given below:

1

(A)-(IV), (B)-(I), (C)-(II), (D)-(III)

2

(A)-(IV), (B)-(III), (C)-(I), (D)-(II)

3

(A)-(II), (B)-(III), (C)-(IV), (D)-(I)

4

(A)-(I), (B)-(III), (C)-(II), (D)-(IV)

04

PYQ 2023

medium

economics ID: cuet-ug-

Which of the following is revaluation of currency in fixed exchange rate system ?

1

The price of domestic currency is pegged with two or more foreign currencies

2

When the government decreased the exchange rate

3

When the government increases the exchange rate

4

The price of domestic currency in terms of foreign currency increases.

Chapter Questions
4 MCQs

List - I	List -II
(A) Institution that accept public deposits	(I) Issuance of currency notes
(B) The central Bank of India	(II) Acceptance of deposit from public
(C) Function of a Central bank	(III) Reserve bank of India
(D) Function of Commercial bank	(IV) Commercial bank