A. not be affected
B. fluctuate more than if exports were lower
C. depreciate
D. appreciate
Related Mcqs:
- If the Pakistan takes part in a war in the Middle East, then the exchange value of its currency will tend to ?
A. depreciate
B. not be affected
C. fluctuate more than if it were at peace
D. appreciate - 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 - If a nation’s interest rates are relatively low compared to those of other countries. then the exchange value of its currency will tend to ?
A. not be affected
B. appreciate
C. depreciate
D. fluctuate more than if interest rates were high - If a nation’s interest rates are relatively low compared to those of other countries then the exchange value of its currency will tend to ?
A. depreciate under a system of fixed exchange rates
B. depreciate under a system of floating exchange rates
C. appreciate under a system of floating exchange rates
D. appreciate under a system of floating fixed rates - 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 - What is called the difference in the value of a nation’s imports over exports or exports over imports ?
A. Trade deficit
B. Trade simples
C. Both a & b
D. Not a nor b - If Pakistan’s incomes rise faster than those in most other countries the the exchange value will tend to ?
A. fluctuate more than it would do otherwise
B. appreciate
C. depreciate
D. not be affected - If a large car importer in the Pakistan wants to import many cars, then the exchange value of the Pak rupees will tend to ?
A. fluctuate more than it would do otherwise
B. appreciate
C. depreciate
D. not be affected - 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 - 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
