Open-Economy Macroeconomics Class 12 MCQs Questions with Answers

1. The forms of foreign exchange market is/are:

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

3. Which one is a source of the demand for foreign exchange?

4. Which items are included in the Balance of Payments?

5. Which one is the visible item of Balance of Payments?

6. When was the gold standard abandoned?

7. Which one is a merit of the fixed exchange rate?

8. Trade of visible items between the countries is known as ________

9. Balance of Trade =?

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

11. When there is unfavourable balance of trade?

12. Which one is a kind of fixed exchange rate?

13. The price of one currency in terms of another is known as _________

14. By exchange rate we mean:

15. When there is a favourable balance of trade?

16. The trade of visible and invisible items is known as _________

17. Which one is a demerit of the fixed exchange rate?

18. Foreign exchange is determined by:

19. Hybrid in management of fixed and flexible exchange rate is known as ________

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