Functions of Foreign Exchange Market Quiz Questions and Answers PDF - 53

MCQ 261: An investment to reduce the risk of adverse price movements in an asset is known as

1. currency swap
2. speculation
3. hedging
4. arbitrage

MCQ 262: It's a standard act by government to prevent goods to be sold at too lowest prices and is known as

1. price floor
2. price ceiling
3. binding
4. equilibrium

MCQ 263: Since quantity supplied by a firm under monopoly is not determined by price but instead by marginal revenue, given the marginal cost curve, so there lies no

1. demand curve
2. supply curve
3. isoquant
4. straight line

MCQ 264: The concept that is defined as the value of overseas assets owned by a nation minus the value of domestic assets owned by foreigners is called as

1. balance of payments
2. creditor nation
3. international investment position
4. net investment income

MCQ 265: If the time period is short and the supply cannot be expanded after a price increase, the supply is relatively

1. elastic
2. inelastic
3. zero
4. slightly inelastic