Matching Type MCQs of Foreign Exchange Rate Class 12
Looking for important Matching Type MCQs with answers of Foreign Exchange Rate chapter of Macroeconomics class 12 CBSE, ISC and other state Board.
We have compiled very important Matching Type MCQs of the foreign exchange rate chapter of economic Class 12
Matching Type Multiple Choice Questions of foreign exchange rate chapter of class 12
Let’s practice
From the set of statements given in Column I and Column II, choose the correct pair of statements.
| Column – I | Column – II |
| A – Revaluation | i) Decrease in the value of domestic currency by the government |
| B – Fixed Exchange Rate | ii) Determined by forces of demand and supply of foreign exchange |
| C – Demand for Foreign Exchange | iii) Imports of Goods and Services |
| D – Rupee is said to be depreciating | iv) Price of $1 rises from ₹ 70 to ₹ 73 |
Options
a) A – i
b) B – ii
c) C – iii, D – iv
d) None of these
Ans – c)
Match the statements given under A with the correct options given under B.
| Column – I | Column – II |
| i) A change from ₹ 180 = 2$ to ₹85 = 1$ | A – ₹ is appreciating |
| B – ₹ is depreciating |
Options
a) i – A
b) i – B
Ans – a)
Match the statements given under A with the correct options given under B.
| Column – A | Column – B |
| i) Fall in the market price of foreign currency | A – National income is likely to fall |
| ii) Rise in the market price of foreign currency | B – National income is likely to rise |
a) i – A, ii – B
b) i – B, ii – A
Ans – a)
Match the statements given under A with the correct options given under B.
| Column – A | Column – B |
| i) Flexible Exchange Rate System | A – Dirty Floating |
| ii) Supply of Foreign Exchange | B – Leads to increase in imports |
| iii) Currency Appreciation | C – Takes place due to government |
| iv) Devaluation | D – Floating Exchange Rate System |
| v) Managed Floating Rate System | E – Unilateral Transfers from abroad |
Options
a) i – A, ii – B, iii – C, iv – D, v – E
b) i – B, ii – C, iii – D, iv – E, v – A
c) i – D, ii – E, iii – B, iv – C, v – A
d) i – C, ii – A, iii – D, iv – B, v – E
Ans – c)
Match the statements given under A with the correct options given under B.
| Column – A | Column – B |
| i) Currency Depreciation | A – Purchase of Assets in Foreign Countries |
| ii) Fixed Exchange Rate System | B – Intervention of RBI |
| iii) Demand for foreign Exchange | C – Leads to increase in exports |
| iv) Managed Floating Rate System | D – Decided by the Government |
Options
a) i – A, ii – B, iii – C, iv – D
b) i – B, ii – A, iii – D, iv – C
c) i – C, ii – D, iii – A, iv – B
d) i – D, ii – C, iii – B, iv – A
Ans – c)
Write the correct pair:
| Column – A | Column – B |
| A – Increase in demand for foreign currency, supply remaining unchanged | i) Depreciation of domestic currency |
| B – Decrease in the supply of foreign currency, demand remaining unchanged | ii) Appreciation of domestic currency |
| C – Increase in supply of foreign currency, demand remaining unchanged | iii) Devaluation of domestic currency |
Options
a) A – i)
b) B – ii)
c) C – iii)
d) D – iv)
Ans – a)
Write the correct pair.
| Column – A | Column – B |
| A – Nominal Exchange Rate | i) It is the price of one unit of foreign currency in terms of domestic currency. |
| B – Real Exchange Rate | ii) It is the exchange rate that does not account for changes in the price level. |
| C – Nominal Effective exchange rate | iii) It is the ratio of foreign to domestic prices, measured in the same currency. |
| D – Flexible Exchange Rate | iv) It is the rate determined by the government of the country |
Options
a) A – i)
b) B – ii)
c) C – iii)
d) D – iv)
Ans -a)
Choose the incorrect pair from the given below.
| Column – A | Column – B |
| A – Export of Goods | i) Demand for foreign exchange rate |
| B – Import of Services | ii) Supply of foreign exchange |
| C – Fixed and Floating exchange rate | iii) Dirty Floating |
Options
a) A – i)
b) B – ii)
c) C – iii)
d) Both a) and b)
Ans – d)
