Term a country’s decision to tie the value of its currency to another country’s currency gold or a basket of currencies ?

Related Mcqs:

1. There is method by which one currency is bought, sold or valued in terms of other currencies, gold or accounting units such as the Special Drawing Right of IMF. What is it called ?

   A. Currency exchange
   B. Currency value
   C. Currency value
   D. Exchange rate

2. Currency that is expected to drop in value relative to other currencies is called ?

   A. Local currency
   B. Cold currency
   C. Lime currency
   D. Soft currency

3. What is called a country’s decision to allow its currency value to change freely?

   A. Pegged exchange rate
   B. Floating exchange rate
   C. Liberal exchanged rate
   D. Open exchange rate

4. All currencies other than the domestic currency of a given country are referred to as ?

   A. hard currency
   B. foreign exchange
   C. reserve currencies
   D. near monies

5. What is called that bank which regularly accepts foreign currency-denominated deposits and makes foreign currency-denominated deposits and makes foreign currency loans ?

   A. Eurobank
   B. Foreign bank
   C. International Bank
   D. Multinational Bank

6. If export contracts are written in terms of foreign currency and import contracts are denominated in domestic currency a depreciation of the dollar during the currency contract period ?

   A. should increase the dollar value of exports
   B. should not have any effect on the dollar value of U.S imports
   C. must increase the balance of trade
   D. All of the above

7. A central bank or monetary authority hold foreign currency for the purpose of exchange intervention and the settlement of intergovernmental claims. Term the currency ?

   A. Reserve currency
   B. Hot currency
   C. Pegged currency
   D. Hard currency

8. Mention the term for an official act of reducing the rate in which one currency is exchanged for another in international currency markets ?

   A. Devolution
   B. Devaluation
   C. Price cap
   D. Cut-rate

9. The system under which a country’s currency is exchangeable for a fixed weight of gold on demand at central bank is called ?

   A. God standard system
   B. Gold based system
   C. Bullion standard system
   D. None of the above

10. The price of one country’s currency in terms of another country’s currency is the ?

    A. exchange rate
    B. balance of trade
    C. terms of trade
    D. currency validation