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1.

When exchange rate in terms of domestic currency :A. Domestic currency depreciatesB. Foreign currency appreciatesC. Domestic currency appreciatesD. No effect on domestic currency

Answer» Correct Answer - C
Discussion
2.

When exchange rate in terms of domestic currency rises :A. Exports become cheaperB. Imports becomes cheaperC. Exports becomess costlierD. No effect on imports

Answer» Correct Answer - A
Discussion
3.

Floating exchange rate is determined by :A. Mutual consultations between countriesB. Banking systemC. Market forcesD. None of the above

Answer» Correct Answer - C
Discussion
4.

In the foreign exchange market the market price of US dollar rises from Rs. 60 to Rs. 61. This means that :A. Rupee has depreciatedB. US Dollar has appreciatedC. Both (a) and (b)D. None of the above

Answer» Correct Answer - C
Discussion