A. Devolution
B. Devaluation
C. Price cap
D. Cut-rate
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 - 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 - 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 - 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 - For the United States suppose the annual interest rate on government securities equals 8 percent while the annual inflation rate equals 4 percent, For Switzerland the annual interest rate on government securities equal 10 percent while the annual inflation rate equals 7 percent the above variables would cause investment funds to flow from ?
A. the United States to Switzerland causing the dollar to depreciate
B. the United States to Switzerland causing the dollar to appreciate
C. Switzerland to the United States causing the franc to depreciate
D. Switzerland to the United States causing the franc to appreciate - For the United States suppose the annual interest rate on government securities equals 12 percent while the annual inflation rate equals 8 percent For Japan the annual interest rate on government securities equals 10 percent while the annual inflation rate equals 5 percent the above variables would cause investment funds to flow from ?
A. The United States to Japan causing the dollar to depreciate
B. The United States to Japan causing the dollar to appreciate
C. The Japan to United States, causing the dollar to depreciate
D. The Japan to United States, causing the dollar to appreciate - 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 - 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
