A. Devaluation can have only temporary effects and it may provoke other countries to retaliate B.Many countries of Europe resorted to exchange clearing agreements during the 1930s C.The balance of. read more…
A. The central bank of the country B.The forces of demand and supply in the foreign exchange market C.The price of gold D.The purchasing power of currencies
The spot and forward markets in foreign exchange are linked to each other through:
A. Interest arbitrage B.Hedging C.Speculation D.All of the above
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What does the modern theory of international trade predict regarding difference in factor prices between nations on account of trade? The difference:
A. Increases B.Diminishes C.Remains the same D.Either diminishes or increases
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The multiple exchange rates were first employed by:
A. Brazil B.Ecuador C.Germany D.Peru
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Which of the following statements is not correct?
A. Devaluation can have only temporary effects and it may provoke other countries to retaliate B.Many countries of Europe resorted to exchange clearing agreements during the 1930s C.The balance of. read more…
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Under the flexible exchange rate system, the exchange rate is determined by:
A. The central bank of the country B.The forces of demand and supply in the foreign exchange market C.The price of gold D.The purchasing power of currencies
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By which year had the gold standard virtually disappeared from the world as an international monetary system?
A. 1933 B.1936 C.1939 D.1945
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The market for very short term loans is known as:
A. Capital market B.Money market C.Stock market D.Discount market
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If the increase in exports exceeds the increase in imports, and other things remain the same, then the level of income will:
A. Rise B.Remain the same C.Fall D.Move in an uncertain manner
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Which of the following was not favoured by the mercantilists?
A. Accomulation of gold by the country B.Free trade C.Export promotion D.Import restriction
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Of the following concepts of term of trade, which one was introduced by F.W. Taussig?
A. Income terms of trade B.Commodity terms of trade C.Real cost terms of trade D.Double fact oral terms of trade
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