29 exchange rate of determination

8/16/2019 29 Exchange Rate of Determination

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1. Weighted average of the price of one currency in relation to other is:

eal !"change rate

#ominal !"change rate

#ominal !ffective !"change rate

eal !ffective !"change rate

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$. % decrease in the value of one currency in relation to other is termed as:

&epreciation

%ppreciation

'terilization

#one of the aove

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3. !"change ate aims at:'ales and purchase of foreign currencies

urrency of one country converted in to currency of other country

*ethods and mechanisms to ma+e international payments


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%ll the aove

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,. entral an+ intervene to determine the e"change rate staility -ith respect to

domestic currency is:

i"ed rate

le"ile rate

&irty loating

lean loating

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/. % rise in value of a currency in relation to other is termed as:

evaluation

&evaluation

urrency 0vervaluation

urrency ndervaluation

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2. When the e"change rate valued y central an+ is lo-er than the mar+et

determined rate it is termed as:


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evaluation

&evaluation

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4. Which of the follo-ing -ill affect e"change rate5

&emand 6 'upply of oreign currencies

7olitical conditions

urrency conditions

%ll of the aove

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8. When central an+ sells foreign e"change in the mar+et it leads to

currency999999..

%ppreciation

&epreciation




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. When central an+ purchases foreign e"change from the mar+et then

money supply -ill 99999

;ncrease

&ecrease

#o change

#one of the aove

29 exchange rate of determination

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