Multiple Choice
Which of the following is not an assumption of the Purchasing Power Parity theory? -------
A) There are no trade barriers between countries
B) The price index for each of the two countries must be comprised of the same basket of goods
C) All the prices should be indexed to the same year
D) Changes in the exchange rate changes internal price level
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Pick out the feature which is not
Q2: Transaction where the exchange of currencies take
Q4: The modern foreign exchange market functions in
Q5: Under IMF, the exchange rate system was
Q6: Flexible exchange rate system, the exchange rate
Q7: Exchange rate between two currencies is based
Q8: Purchasing Power Parity Theory considers that goods
Q9: Pick out the feature which is not
Q10: In a system of managed float there
Q11: Trading in foreign exchange has become fast