Question 1

Under fixed exchange rate system, the currency rate in the market is maintained through

Accepted Answer

A) official intervention 
B) rationing of foreign exchange 
C) centralising all foreign exchange operations with central bank of the country 
D) none of the above A

Question 2

The buying rate is also known as the

Accepted Answer

A) bid rate 
B) offer rate 
C) spread 
D) swap A

Question 3

Euro was launched on

Accepted Answer

A) 1999 
B) 2000 
C) 2002 
D) 2004 A

Question 4

Indirect rate of exchange is quoted in India for -

Accepted Answer

A) sale of foreign travellers cheque 
B) sale of rupee travellers cheques 
C) purchase of personal cheques 
D) none of the above

Question 5

The market forces influencing the exchange rate are not fully operational under

Accepted Answer

A) floating exchange rate system 
B) speculative attack on the market 
C) fixed exchange rate system 
D) current regulations of IMF

Question 6

According managed to classification by IMF, the currency system of India falls under

Accepted Answer

A) Managed flating 
B) independently floating 
C) crawling peg 
D) pegged to basket of currencies

Exam 7: Exchange Rate and Currency Systems: Understanding Market Forces and Transaction Types