A. National income
B. Saving
C. Imports at lower cost
D. Exports
Related Mcqs:
- Devaluation of currency can help to increase exports if elasticity of demand of exportable items in other countries is ?
A. Less than one
B. Greater than one
C. Equal to one
D. Zero - Which approach predicts that is an economy operates a full employment and faces trade deficit currency devaluation will improve the trade balance only if domestic spending is cut thus freeing resources to produce exports ?
A. the absorption approaches
B. the Marshall Lerner approach
C. the monetary approach
D. the elasticities approach - 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 - 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 - Mention an international trade policy competitive devaluation and increased protective barriers that one country institute to gain at the expense of its trading partners ?
A. Nationalist policy
B. Domestic policy
C. Protectionist policy
D. Beggar-thy-beighbour - Devaluation means ?
A. Converting rupee into gold
B. Lowering of the value of one currency in comparison of some foreign currency
C. Making rupee dearer in comparison to some foreign currency
D. None of these - The competitive advantage from a devaluation is likely to be offset by _______ and ________?
A. higher import prices, higher wages increases
B. lower export prices, lower imports volumes
C. higher import prices, lower export prices
D. higher wage increases lower import volumes - The analysis considers the ability of domestic and foreign price of adjust to devaluation in the short run ?
A. pass through
B. absorption
C. adjustment mechanism
D. currency contract period - The analysis considers the ability of domestic and foreign price of adjust to devaluation in the short run ?
A. pass through
B. absorption
C. adjustment mechanism
D. currency contract period - 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
