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

Related Mcqs:

1. 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

2. 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

3. 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

4. Investor engage in _____ when they move funds into foreign currencies in order to take advantage to interest rates abroad that are higher than domestic interest rates ?

   A. currency arbitrage
   B. interest arbitrage
   C. short positions
   D. long positions

5. 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

6. 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

7. 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

8. 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

9. 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

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