Economics MCQs

4475 MCQs  (Page 120 of 448)

Attempt Economics Mcqs Quiz
In the ERM, each country fixed participant Collectively the group ________ against the rest of the world?
A. A nominal exchange rate, floated
B. A real exchange rate, pegged
C. A purchasing power parity, pegged
D. A real exchange rate, floated
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All of the following are benefits of the single market except ?
A. it allows countries to exploit their comparative advantage, more fully
B. firm could more readily exploit
C. economies of scal
D. it intensified competition
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If one country, with floating exchange rates, has higher inflation than its competitors we would expect its exchange rate to ?
A. Appreciate
B. Depreciate
C. Revalue
D. Be in short supply
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A rise in the real exchange rate will ________ the competitiveness of the domestic economy?
A. Increase
B. Reduce
C. Do nothing to
D. None of the above
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perfect international capital mobility suggests that international funds will be responsive to ________ differentials?
A. Current account
B. Interest rate
C. Tax
D. Price
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With fixed exchange rates and no private currency flows, when the central bank buys domestic currency the domestic money supply is ?
A. Increased
B. Unaffected
C. Reduced
D. None of these
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A fixed exchange rate, plus perfect capital mobility ________ the scope for monetary policy ?
A. Enhances
B. Undermines
C. Encourages
D. Facilitates
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Under floating exchange rates, expectations of higher interest rates are likely to cause an ____ of the exchange rate?
A. Depreciation
B. Appreciation
C. Fall
D. Devaluation
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If currency dealers expect the value of the pound to fall, the exchange value will tend to ?
A. Depreciate
B. Not be affected
C. Fluctuate more than it would do therwise
D. Appreciate
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If the US economy is forecast to come out of recession because military expenditure has increase then the exchange value of the UK pound will tend to ?
A. Depreciate
B. Not be affected
C. Fluctuate more than it would do therwise
D. Appreciate
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Word of the Day
26 Jul
Simultaneously
at the same time.
ایک ہی وقت میں، ایک ساتھ، بیک وقت

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