MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
BOP deficit can be corrected through -------------- |
| A. | Increasing imports |
| B. | Increasing exports |
| C. | Increase in interest rates |
| D. | None of these |
| Answer» C. Increase in interest rates | |
| 2. |
-------------- is a social factor that influence the exchange rate |
| A. | War |
| B. | Tourism |
| C. | Changes in preferences |
| D. | None of these |
| Answer» D. None of these | |
| 3. |
The objective of IMF is |
| A. | Reduce Inequality |
| B. | Exchange rate stability |
| C. | Reduce poverty |
| D. | None of these |
| Answer» C. Reduce poverty | |
| 4. |
Decrease in the value of a currency is known as ------------- |
| A. | Depreciation |
| B. | Appreciation |
| C. | Overvaluation |
| D. | None of these |
| Answer» B. Appreciation | |
| 5. |
The membership of the IDA is open to all membership of ----------- |
| A. | ADB |
| B. | IDBI |
| C. | ICICI |
| D. | IBRD |
| Answer» E. | |
| 6. |
The currency of Austria |
| A. | Euro |
| B. | Dollar |
| C. | Mark |
| D. | Pound |
| Answer» B. Dollar | |
| 7. |
A deficit budget leads to ---------------- |
| A. | Decrease in the value of domestic currency |
| B. | Increase in the value of domestic currency |
| C. | Stability in the exchange rate |
| D. | None of these |
| Answer» B. Increase in the value of domestic currency | |
| 8. |
Balance of Trade is a ---- |
| A. | Stock Concept |
| B. | Flow Concept |
| C. | Stock and Flow Concept |
| D. | None of these |
| Answer» C. Stock and Flow Concept | |
| 9. |
Coverage of risks due to fluctuating exchange rates is known as --------- |
| A. | Speculation |
| B. | Arbitrage |
| C. | Hedging |
| D. | Forward rate |
| Answer» D. Forward rate | |
| 10. |
IFC was established in ------------ |
| A. | 1953 |
| B. | 1954 |
| C. | 1955 |
| D. | 1956 |
| Answer» E. | |
| 11. |
World Bank is also known as -------------------- |
| A. | IBRD |
| B. | IFC |
| C. | IDA |
| D. | MIGA |
| Answer» B. IFC | |
| 12. |
The difference between the value of goods and services exported and imported is called ------------- |
| A. | BOP |
| B. | BOT |
| C. | Balance on Capital Account |
| D. | Balance of Current Account |
| Answer» C. Balance on Capital Account | |
| 13. |
Smithsonian Agreement is for ----------------------- |
| A. | Saving bretton wood system |
| B. | Saving gold standard |
| C. | Protect flexible system |
| D. | None of these |
| Answer» B. Saving gold standard | |
| 14. |
IDA grants loans to those projects which are not financed by ------- |
| A. | IMF |
| B. | ADB |
| C. | IBRD |
| D. | ASEAN |
| Answer» D. ASEAN | |
| 15. |
Part I members of IDA are called ------------------- |
| A. | G24 members |
| B. | G10 members |
| C. | G20 members |
| D. | None of these |
| Answer» B. G10 members | |
| 16. |
A deficit BOP exists, when ----------------- |
| A. | Receipts> payments |
| B. | Receipts< payments |
| C. | Receipts= payments |
| D. | None of these |
| Answer» C. Receipts= payments | |
| 17. |
EURO is the currency of ---------------- |
| A. | European Union |
| B. | Europe |
| C. | Britain |
| D. | None of these |
| Answer» B. Europe | |
| 18. |
Central bank is likely to set policies and procedures to keep the exchange rate ------------------ |
| A. | Down |
| B. | Stable |
| C. | Up |
| D. | None of these |
| Answer» C. Up | |
| 19. |
FEMA is known as ------------- |
| A. | FEMA 1999 |
| B. | FEMA 2000 |
| C. | FEMA 2001 |
| D. | FEMA 1998 |
| Answer» B. FEMA 2000 | |
| 20. |
The WTO is the successor to ------------- |
| A. | VAT |
| B. | GATT |
| C. | GTT |
| D. | ATT |
| Answer» C. GTT | |
| 21. |
EXIM Bank of India was set up in --------------- |
| A. | 1981 |
| B. | 1982 |
| C. | 1983 |
| D. | 1984 |
| Answer» C. 1983 | |
| 22. |
Which is known as paper gold |
| A. | SRDs |
| B. | SDRs |
| C. | YEN |
| D. | DOLLAR |
| Answer» C. YEN | |
| 23. |
India is a member of ------------- |
| A. | ADB |
| B. | IMF |
| C. | IBRD |
| D. | All the above |
| Answer» E. | |
| 24. |
Increase in the value of a currency is known as -------------- |
| A. | Devaluation |
| B. | Depreciation |
| C. | Appreciation |
| D. | None of these |
| Answer» D. None of these | |
| 25. |
The exchange rates in which the spot transactions are carried out are known as |
| A. | Spot rate |
| B. | ASK rate |
| C. | Bid rate |
| D. | Forward rate |
| Answer» B. ASK rate | |
| 26. |
Devaluation will improve when elasticity of demand of country’s export and import is |
| A. | Less than one |
| B. | Equal to one |
| C. | Infinity |
| D. | Greater than one |
| Answer» E. | |
| 27. |
--------------- takes into account only merchandize exports and imports |
| A. | BOP |
| B. | BOT |
| C. | TOB |
| D. | BTO |
| Answer» C. TOB | |
| 28. |
WTO came into existence with a membership of ------------------ |
| A. | 124 |
| B. | 125 |
| C. | 121 |
| D. | 120 |
| Answer» C. 121 | |
| 29. |
Forex reserves of a country are held by --------------------- |
| A. | Commercial Banks |
| B. | Central Banks |
| C. | Investment Banks |
| D. | None of these |
| Answer» C. Investment Banks | |
| 30. |
The most popular currencies in the offshore market are ----------- |
| A. | Dollar and Yen |
| B. | Dollar and Euro |
| C. | Euro and Yen |
| D. | Euro and Rupee |
| Answer» C. Euro and Yen | |
| 31. |
Mahalanobis Strategy adopted in the ----------- |
| A. | 1st five year plan |
| B. | 2ND five year plan |
| C. | 3RD five year plan |
| D. | 4TH five year plan |
| Answer» C. 3RD five year plan | |
| 32. |
Price index is considered in ---------------- theory of exchange rate determination |
| A. | BOP theory |
| B. | PPP theory |
| C. | Mint Purity theory |
| D. | None of these |
| Answer» C. Mint Purity theory | |
| 33. |
Which one of the following items in the balance of payments is invisible |
| A. | Travel |
| B. | Shipping |
| C. | Export of goods |
| D. | Gifts |
| Answer» B. Shipping | |
| 34. |
When exports increase, the supply of foreign currency ----------- |
| A. | Increases |
| B. | Decrease |
| C. | Remains constant |
| D. | None of these |
| Answer» B. Decrease | |
| 35. |
IBRD was established in |
| A. | 1940 |
| B. | 1943 |
| C. | 1944 |
| D. | 1945 |
| Answer» E. | |
| 36. |
Which are known as Bretton Wood Twins? |
| A. | IMF&IFC |
| B. | IFC & IDA |
| C. | IMF & IBRD |
| D. | ADB & IDA |
| Answer» D. ADB & IDA | |
| 37. |
IMF created buffer stock financing facility in ----------- |
| A. | 1959 |
| B. | 1969 |
| C. | 1979 |
| D. | 1989 |
| Answer» C. 1979 | |
| 38. |
The agreement, TRIPs and TRIMs are related to ------------- |
| A. | ADB |
| B. | IBRD |
| C. | WTO |
| D. | None of these |
| Answer» D. None of these | |
| 39. |
SDRs are popularly known as ------------------ |
| A. | Gold |
| B. | Paper gold |
| C. | Paper money |
| D. | None of these |
| Answer» C. Paper money | |
| 40. |
IFC was established in ------------- |
| A. | 1956 |
| B. | 1958 |
| C. | 1960 |
| D. | none |
| Answer» B. 1958 | |
| 41. |
The members of the IMF are the members of -------------- |
| A. | IFC |
| B. | IDA |
| C. | ADB |
| D. | IBRD |
| Answer» E. | |
| 42. |
GATT came into existence in ---------------- |
| A. | 1947 |
| B. | 1946 |
| C. | 1948 |
| D. | 1950 |
| Answer» D. 1950 | |
| 43. |
According to PPP theory the exchange rate between two currencies are determined by their ------------ |
| A. | Relative price level |
| B. | Relative interest level |
| C. | Relative income level |
| D. | None of these |
| Answer» B. Relative interest level | |
| 44. |
IFC was established in ---------------- |
| A. | 1958 |
| B. | 1956 |
| C. | 1954 |
| D. | 1950 |
| Answer» C. 1954 | |
| 45. |
Smithsonian Agreement was signed in the year --------- |
| A. | 1970 |
| B. | 1972 |
| C. | 1973 |
| D. | 1971 |
| Answer» E. | |
| 46. |
------------------- system imposes a discipline an monetary authorities |
| A. | Flexible |
| B. | Fixed |
| C. | Bretton wood |
| D. | None of these |
| Answer» C. Bretton wood | |
| 47. |
IBRD is also known as --------------- |
| A. | Asian Bank |
| B. | Development Bank |
| C. | World Bank |
| D. | Investment Bank |
| Answer» D. Investment Bank | |
| 48. |
IDA was established in ------------- |
| A. | 1960 |
| B. | 1950 |
| C. | 1970 |
| D. | 1955 |
| Answer» B. 1950 | |
| 49. |
------------- of a country is the relation over a period between the values of her exports and the values of her imports |
| A. | BOP |
| B. | BOT |
| C. | Budget |
| D. | None of these |
| Answer» C. Budget | |
| 50. |
The settlement of spot transactions takes place within |
| A. | Tree days |
| B. | One day |
| C. | Two days |
| D. | 4 days |
| Answer» D. 4 days | |