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question_answer1) Directions : Read the following statements: Assertion [a] and Reason [R]. Choose one of the correct alternative. Assertion (A): Fixed exchange rate is a stable exchange rate so uncertainty in the international market is prevented which promotes international trade. Reason (R): Because it is the exchange rate which is officially fixed and declared by the government.
question_answer2) Directions : Read the following statements: Assertion [a] and Reason [R]. Choose one of the correct alternative. Assertion (A): Flexible exchange rate is also known as floating or free exchange rate. Reason (R): Because it is determined by the market forces of demand and supply of foreign exchange without government intervention.
question_answer3) Directions : Read the following statements: Assertion [a] and Reason [R]. Choose one of the correct alternative. Assertion (A): Managed floating exchange rate is a hybrid of fixed and flexible exchange rate. Reason (R): Because exchange rate is determined by the market forces however Central Bank intervenes to reduce fluctuations in the foreign exchange rate.
question_answer4) Directions : Read the following statements: Assertion [a] and Reason [R]. Choose one of the correct alternative. Assertion (A): Rupee is said to be depreciating if price of $ 1 falls from Rs. 75 to Rs. 70. Reason (R): Rupee depreciates when more Indian rupees are needed to buy a dollar.
question_answer5) Directions : Read the following statements: Assertion [a] and Reason [R]. Choose one of the correct alternative. Assertion (A): Rupee is said to be appreciating if price of $1 falls from Rs. 75 to Rs. 70. Reason (R): Rupee appreciates when less Indian rupees are needed to buy a dollar.
question_answer6) Directions : Read the following statements: Assertion [a] and Reason [R]. Choose one of the correct alternative. Assertion (A): When the exchange rate is too high. Central Bank intervenes to reduce fluctuations in the foreign exchange rate. Reason (R): Central Bank start selling foreign currency from its reserves:
question_answer7) Directions : Read the following statements: Assertion [a] and Reason [R]. Choose one of the correct alternative. Assertion (A): When the exchange rate is too low. Central Bank intervenes to reduce fluctuations in the foreign exchange rate. Reason (R): Central Bank start buying foreign currency from the market.
question_answer8) Directions : Read the following statements: Assertion [a] and Reason [R]. Choose one of the correct alternative. Assertion (A): Currency depreciation increases exports and decreases imports. Reason (R): Because foreigners have to pay less for buying goods of that country whose currency has been depreciated. On the other hand, to buy a good from foreign country will become expensive.
question_answer9) Directions : Read the following statements: Assertion [a] and Reason [R]. Choose one of the correct alternative. Assertion (A): Currency appreciation decreases exports and increases imports. Reason (R): Because foreigners have to pay more for buying goods of that country whose currency has been appreciated. On the other hand, to buy a good from foreign country will become less expensive.
question_answer10) Directions : Read the following statements: Assertion [a] and Reason [R]. Choose one of the correct alternative. Assertion (A): Revaluation is the opposite of devaluation. Reason (R): Both are done by government. Revaluation means increase in the value of domestic currency with respect to foreign currency. Devaluation means decrease in the value of domestic currency with respect to foreign currency.
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