ICSE XII/MCQ Questions for Class 12 Economics Set-7 Sample Test,Sample questions

Question:
Decrease in the value the foreign commodities is known as _________

1.Revaluation

2.Devaluation

3.Deflation

4. All of these


Question:
Hybrid in management of fixed and flexible exchange rate is known as ________

1. Managed to float

2. Crawling Peg

3. Wider Bands

4.None of these


Question:
Increase in the value of foreign commodities is known as _________

1. Revaluation

2. Devaluation

3. Inflation

4. None of these


Question:
Other things remaining the same, when in a country the market price of foreign currency falls, national income is likely:

1.To rise

2. To fall

3.To rise or to fall

4. To remain affected


Question:
Other things remaining unchanged, when in a country the price of foreign currency rises, national income is:

1.Likely to rise

2. Likely to fall

3. Likely to rise and fall both

4.Not affected


Question:
The operation of daily nature in the foreign exchange market is known as ________

1.Spot market

2.Forward market

3.Domestic market

4. International market


Question:
The operation of future delivery in the foreign exchange market is known as ________

1.Spot market

2.Current market

3. Forward market

4. Domestic market


Question:
The price of one currency in terms of another is known as _________

1. Foreign exchange rate

2. Trade rate

3.Interest rate

4. Balance of Payment


Question:
The trade of visible and invisible items is known as _________

1.Balance of Payments

2. Balance of Trade

3.Deficit of interest

4. Profit


Question:
Trade of visible items between the countries is known as ________

1.Balance of Payment

2.Balance of Trade

3.Deficit Balance

4. All of these


Question:
What is the cause of the devaluation of any country’s currency?

1. Increase in the domestic inflation rate

2.Domestic real interest rates are less than foreign interest rates

3. Much increase in the income

4.All of these


Question:
When the import and export of visible items are equal, the situation is known as _______

1. Balance of Trade

2. Balance of Payment

3.Trade Surplus

4.Trade Deficit


Question:
When there is a favourable balance of trade?

1. X > M

2. X = M

3. X < M

4. None of these


Question:
When there is unfavourable balance of trade?

1.X > M

2.X = M

3.X < M

4.None of these


Question:
When was the gold standard abandoned?

1.1930’s

2.1920’s

3.1940’s

4.1950’s


Question:
Who issues 1 rupee note in India:

1. Reserve Bank of India

2. Finance Ministry of India

3.State Bank of India

4.None of these


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