ICSE XII MCQ Quiz Hub

1. Who issues 1 rupee note in India:
Reserve Bank of India
Finance Ministry of India
State Bank of India
None of these

2. The price of one currency in terms of another is known as _________
Foreign exchange rate
Trade rate
Interest rate
Balance of Payment

3. Increase in the value of foreign commodities is known as _________
Revaluation
Devaluation
Inflation
None of these

4. Decrease in the value the foreign commodities is known as _________
Revaluation
Devaluation
Deflation
All of these

5. What is the cause of the devaluation of any country’s currency?
Increase in the domestic inflation rate
Domestic real interest rates are less than foreign interest rates
Much increase in the income
All of these

6. The operation of daily nature in the foreign exchange market is known as ________
Spot market
Forward market
Domestic market
International market

7. The operation of future delivery in the foreign exchange market is known as ________
Spot market
Current market
Forward market
Domestic market

8. Hybrid in management of fixed and flexible exchange rate is known as ________
Managed to float
Crawling Peg
Wider Bands
None of these

9. When was the gold standard abandoned?
1930’s
1920’s
1940’s
1950’s

10. Trade of visible items between the countries is known as ________
Balance of Payment
Balance of Trade
Deficit Balance
All of these

11. When the import and export of visible items are equal, the situation is known as _______
Balance of Trade
Balance of Payment
Trade Surplus
Trade Deficit

12. When there is a favourable balance of trade?
X > M
X = M
X < M
None of these

13. When there is unfavourable balance of trade?
X > M
X = M
X < M
None of these

14. The trade of visible and invisible items is known as _________
Balance of Payments
Balance of Trade
Deficit of interest
Profit

15. Other things remaining unchanged, when in a country the price of foreign currency rises, national income is:
Likely to rise
Likely to fall
Likely to rise and fall both
Not affected

16. 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 affected