A. Reduce interest rates
B. Sell its own currency
C. Buy its own currency with foreign reserves
D. Increase its own spending
Related Mcqs:
- 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 - Term a country’s decision to tie the value of its currency to another country’s currency gold or a basket of currencies ?
A. Pagged exchanged rate
B. Fixed exchange rate
C. Relative exchange rate
D. Knotted exchange rate - The external benefits of using cars are ____ and the external costs are _____?
A. low; low
B. high; high
C. low; high
D. high; low - If currency dealers expect the value of the pound to fall, the exchange value will tend to ?
A. depreciate
B. not be affected
C. fluctuate more than it would do therwise
D. appreciate - The exchange rate is the ratio at which the currency of one country is exchanged for the currency of another. Which method was developed by the World bank to exchange rates ?
A. Breton Wood method
B. Free market exchange rate
C. Atlas method of exchange rate
D. Open market exchange rate - 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 - 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 - If Sweden’s currency depreciates relative to Norway’s currency ?
A. Norway’s export goods become more expensive to Norway’s residents
B. Norway’s exports goods become cheaper to Sweden’s residents
C. Sweden’s export goods become cheaper to Norway’s residents
D. Sweden’s export goods become cheaper to Sweden’s residents - Because of the J curve effect and partial currency pass through, a depreciation of the domestic currency tends to increase the size of a ?
A. trade surplus in the short run
B. trade surplus in the long run
C. trade deficit in the short run
D. trade deficit in the long run
