CBSE Questions for Class 12 Commerce Economics Open Economy Macroeconomics Quiz 5 - MCQExams.com

The problem with the Bretton Woods exchange rate system was identified by Robert Triffin and was termed as _____________.
  • Triffin dilemma
  • Triffin paradox
  • Triffin rigidity
  • none of the above
_____________ established an exchange rate system in 1971.
  • Bretton woods conference
  • Smithsonian agreement
  • Triffin paradox
  • None of the above
The Bretton Woods exchange rate system was established as a fixed exchange rate system, in the conference held at Bretton Woods in __________.
  • 1925
  • `1912
  • 1944
  • 1933
Full form of SDRs:
  • Suitable Drawing Rights
  • Special Drawing Rights
  • Special Derivation Rights
  • None of the above
The Triffin Dilemma was named after ____________. 
  • John Triffin
  • Robbert Triffin
  • Henry Triffin
  • Adam Triffin
The Smithsonian Agreement was a temporary agreement negotiated in ____________.
  • 1971
  • 1976
  • 1970
  • 1980
The Bretton Woods Conference set up the ________________.
  • World Bank
  • IMF
  • Asian Development Bank
  • WTO
The breakdown of the Bretton Woods System was in _________.
  • 1990
  • 1969
  • 1971
  • 1981
Select the correct statement/statements for the situation when a currency goes for 'devaluation' using the code given below:
Fall in the value of currency vis-a-vis international currencies.
Exports become more competitive.
Trading partners see fall in their exports. 
  • 1 and 2
  • 2 and 3
  • 1 and 3
  • 1, 2 and 3
 Select the correct one/ones related to the provision of rupee convertibility in India, using the code given below: 
India allows partial convertibility to rupee in the capital account in the case of outflow of capital by Indians.
To the extent capital outflow by a foreign company is concerned, India allows full convertibility to rupee in the capital account up to the level of $$ \,$500$$ million. 
  • Only 1
  • Only 2
  • I and 2
  • Neither 1 nor 2
Select the correct outcomes up depreciation in a country's currency-using the code given below:
Export of the country goes up as value of the export falls in the international market.
At times, countries use it as a means to promote their exports.
3.Promoting exports through depreciation in ones currency is like selling national assets at throwaway prices to the world.
  • Only 1
  • Only 3
  • 2 and 3
  • 1,2 and 3
Select the correct one/ones in case of a volatility in the exchange rate of the rupee-using the code given below:
With depreciation in it, India's export earning increase.
Oil marketing companies of India benefit out of appreciation in it.
  • Only 1
  • Only 2
  • 1 and 2 both
  • Neither 1 nor 2
The Gold Standard was from the period _______________.
  • 1872-1920
  • 1870-1914
  • 1865-1900
  • 1870-1900
________ does not hamper the production process.
  • Depreciation
  • Capital loss
  • Natural calamities
  • Both B and C
In case of __________, provision is made for replacement of assets as it is an expected loss.
  • Depreciation
  • Capital loss
  • Natural calamities
  • Both B and C
Arrange the structure of balance of payments accounts in which these items appear.
Capital account
Errors and omission
Current account
Official settlements account
  • 1,2,3,4
  • 3,1,4,2
  • 4,3,2,1
  • 3,4,1,2
Other things remaining the same, when in a country the market price of foreign currency falls, national income is likely _____.
  • To rise
  • To fall
  • To rise or to fall
  • To remain unchanged
Which one is not correct about  country when its currency goes for depreciation?
  • Its exports increases due to increase in the volume of its exports.
  • The country faces deflationary pressure.
  • Import bill of the country increases.
  • In case of India this makes trade deficit increase.
For which of the following purposes Indian currency is fully convertible? Select correct code :
Repatriation of remittances
Interest payments of foreign loans
Direct foreign investment
Indirect foreign investment
Trade 
  • 1,3 and 5
  • 1,2,4 and 5
  • 3,4 and 5
  • 2,4 and 5
A country exported goods worth Rs.6958, whereas, its import amounted to Rs.7555 Cr. Calculate the volume of balance of trade and indicates its nature. 
  • -597 Unfavourable
  • +497 Favourable
  • +597 Favourable
  • -497 Favourable
____________ hampers the production process.
  • Depreciation
  • Capital loss
  • Both A and B
  • None of the above
Which of the following is the source of demand for foreign exchange?
  • Imports
  • Foreign investment
  • Income receipts
  • Both A and B
______________ occurs due to natural calamities like earthquake, floods, etc. or due to thefts, accidents, etc.
  • Expected obsolescence
  • Unexpected obsolescence
  • Depreciation
  • Both A and C
Under flexible exchange rate the equilibrium rate of foreign exchange is determined at the level where
  • Demand > Supply
  • Demand < Supply
  • Demand = Supply
  • None of the above
The exchange rate quoted in forward transactions is known as
  • Spot exchange rate
  • Forward exchange rate
  • Fixed exchange rate
  • None of the above
Devaluation of currency means?
  • reduction in the value of domestic currency by the market forces
  • reduction in the value of domestic currency by the government
  • both a and b
  • neither a nor b
The value of US Dollar $1 has gone up from Rs70 to RsIt means that 
  • Indian rupee has depreciated
  • US Dollar has appreciated
  • Both a and b
  • None of these
Which among the following are included in residents?
  • Foreign military personnel
  • Diplomatic staff
  • Migratory workers
  • None of the above
________________ is used under flexible exchange rate and _______________ is used under fixed exchange rate.
  • Devaluation and Revaluation
  • Revaluation and Devaluation
  • Depreciation and Appreciation
  • Depreciation and Devaluation
Currency appreciation takes place when _____.
  • Domestic currency loses its value in relation to a foreign currency
  • There is an increase in the price of a foreign currency in terms of the domestic currency
  • There is a decrease in the price of a foreign currency in terms of the domestic currency
  • None of these
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