A. Transaction of International monetary business
B. Negotiable bills drawn in one country to be paid in another country
C. Both of them
D. None of them
Related Mcqs:
- Which exchange rate system involves a leaning against the wind|| strategy in which short-term fluctuations in exchange rates are reduced without adhering to any particular exchange rate over the long run ?
A. pegged of fixed exchange rates
B. adjustable pegged exchange rates
C. managed floating exchange rates
D. free floating exchange rates - Goals are achieved through ____ such a monetary fiscal, exchange rate tariff tax subsidy, business incentive foreign investment and foreign aid?
A. indicative plan
B. central bank policies
C. central planning
D. instrument variables - 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 a government uses barriers to foreign products such as biases against a foreign company’s bids or product standards that go against a foreign company’s product features the government is using ?
A. Protectionism
B. exchange controls
C. exchange facilitators
D. nontariff trade barriers - 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 the rate of exchange or exchange rate ?
A. Power to buy foreign currency
B. Foreign currency holding
C. Ratio at which unit of one country’s currency is exchanged for unit of another country currency
D. None of them - The booming of North Seas’ gas export revenues in the 1970s that appreciated the guilder, making industrial export more costly in foreign currencies and increasing foreign competition and unemployment is known as ?
A. Trade deficit
B. Blind river disease
C. Dutch disease
D. Economic turmoil - Speculators in foreign exchange markets do all of the following except ?
A. attempt to profit by trading on expectations about future currency prices
B. bear risk as they attempt to ____ beat the market||
C. attempt to buy currency at a low price and later resell that currency at a higher price
D. Simultaneously buy a currency at a low price and sell that currency at a higher price, making a riskless profit - Which of the following statements regarding the market for foreign currency exchange is true ?
A. An increase in Pakistan’s net exports decreases the supply of rupees and the rupees depreciates
B. An increase in Pakistan’s net exports increase the demand for rupees and the rupees appreciates
C. An increase in Pakistan’s net exports increases the Supply of rupees and the rupees depreciates
D. An increase in Pakistan’s net exports decrease the demand for rupees and the rupees appreciates - If the EU imposes a quota on the importing of clothing produced in China, so reducing UK imports of clothing Which of the following is true regarding the market for foreign currency exchange ?
A. The demand for pounds decreases and the pound depreciates
B. The Supply of pounds increases, and the pound depreciates
C. The Supply of pounds decreases, and the pound appreciates
D. The demand for Pounds increases and the pound appreciates
