The use of foreign currency as a medium of exchange in place of or long with the local currency e.g. (Mdexican Pesos)___________________?

Related Mcqs:

1. All the goods and services produced in a country in a year plus other sources of income for example foreign exchange earnings, foreign aid, foreign remittance, loans etc are called ?

   A. GDP
   B. NNp
   C. NDP
   D. GNP

2. The rate of exchange of one nation’s currency for another nation’s currency?

   A. Exchange rate appreciation
   B. Exchange rate depreciation
   C. Exchange rate determinant
   D. None of these

3. From of central bank that issues domestic currency for foreign exchange at fixed rates ?

   A. Stock exchange
   B. Currency board
   C. State Bank
   D. Commercial Bank

4. Transfer of funds to a foreign country by a local citizen by business ?

   A. Dumping
   B. Anti dumping
   C. Capital flight
   D. Brain

5. Major financial institution responsible for issuing currency, managing foreign reserves implementing monetary policy and providing banking service to the govt. and commercial banks ?

   A. Central Bank
   B. State Bank
   C. Both
   D. None

6. A decrease in the governmentally defined value of currency ____________________?

   A. Inflation
   B. Devaluation
   C. Cheapness
   D. All

7. The gradual decline over time in the value or price of one currency in terms of another as a result of market forces of supply and demand ?

   A. Depreciation
   B. Downsizing
   C. Rightsizing
   D. All

8. Sum total of currency in circulation plus commercial bank demand deposits and sometimes savings bank time deposits?

   A. Money supply
   B. Money lender
   C. National income
   D. None

9. The currency of a major industrial country, such as the U.S dollar___________________?

   A. Main currency
   B. Hard currency
   C. Stable currency
   D. None

10. The sale of products below sale of production in a foreign country or below the prices charged at home is called ?

    A. Dumping
    B. Subsidy
    C. Inflation
    D. Monopoly