Matching Type MCQs of Foreign Exchange Rate Class 12

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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 – IColumn – II
A – Revaluationi) Decrease in the value of domestic currency by the government
B – Fixed Exchange Rateii) Determined by forces of demand and supply of foreign exchange
C – Demand for Foreign Exchangeiii) Imports of Goods and Services
D – Rupee is said to be depreciatingiv) 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 – IColumn – 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 – AColumn – B
i) Fall in the market price of foreign currencyA – National income is likely to fall
ii) Rise in the market price of foreign currencyB – 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 – AColumn – B
i) Flexible Exchange Rate SystemA – Dirty Floating
ii) Supply of Foreign ExchangeB – Leads to increase in imports
iii) Currency AppreciationC – Takes place due to government
iv) DevaluationD – Floating Exchange Rate System
v) Managed Floating Rate SystemE – 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 – AColumn – B
i) Currency DepreciationA – Purchase of Assets in Foreign Countries
ii) Fixed Exchange Rate SystemB – Intervention of RBI
iii) Demand for foreign ExchangeC – Leads to increase in exports
iv) Managed Floating Rate SystemD – 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 – AColumn – B
A – Increase in demand for foreign currency, supply remaining unchangedi) Depreciation of domestic currency
B – Decrease in the supply of foreign currency, demand remaining unchangedii) Appreciation of domestic currency
C – Increase in supply of foreign currency, demand remaining unchangediii) Devaluation of domestic currency

Options

a) A – i)
b) B – ii)
c) C – iii)
d) D – iv)

Ans – a)

Write the correct pair.

Column – AColumn – B
A – Nominal Exchange Ratei) It is the price of one unit of foreign currency in terms of domestic currency.
B – Real Exchange Rateii) It is the exchange rate that does not account for changes in the price level.
C – Nominal Effective exchange rateiii) It is the ratio of foreign to domestic prices, measured in the same currency.
D – Flexible Exchange Rateiv) 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 – AColumn – B
A – Export of Goodsi) Demand for foreign exchange rate
B – Import of Servicesii) Supply of foreign exchange
C – Fixed and Floating exchange rateiii) Dirty Floating

Options

a) A – i)
b) B – ii)
c) C – iii)
d) Both a) and b)

Ans – d)

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Anurag Pathak
Anurag Pathak

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