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

Related Mcqs:

1. 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 valuation

2. 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

3. Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?

   XA. wages and rents should fall in Country A
   B. wages and rents should rise in Country A
   C. wages should rise and rents should fall in Country A
   D. wages should fall and rents should raise in Country A

4. 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

5. 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

6. Suppose that the world price of tin is above the target (ceiling) price that is defined by an international commodity agreement. To move the world price toward the target price, a buffer stock agreement would require its buffer stock manager to ____ tin and an export quota agreement would require that member countries _________ their export of tin?

   A. purchase; decrease
   B. purchase; increase
   C. sell; increase
   D. sell; decrease

7. 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

8. With fixed exchange rates and no private currency flows, when the central bank buys domestic currency the domestic money supply is ?

   A. increased
   B. unaffected
   C. reduced
   D. None of these

9. 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

10. 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