Economics MCQs – Mock Test 41

Functions of Foreign Exchange Market Quiz with Answers PDF Download – Test 41

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Free Functions of Foreign Exchange Market Study App Download with MCQ: "An agreement to make a currency exchange between two foreign parties is known as"; with answers: forward rate, currency swap, foreign currency swap, and spot rate. Solve foreign exchange markets and exchange rates questions and answers to improve problem solving skills for economics professional training.

Functions of Foreign Exchange Market Quiz – Mock Test 41 PDF Download

MCQ 201: An agreement to make a currency exchange between two foreign parties is known as:

currency swap
forward rate
spot rate
foreign currency swap

MCQ 202: Monopoly power sometimes leads towards market failure while discouraging the fact of:

welfare of the society
welfare of the economy
welfare of the community
welfare of the country

MCQ 203: The situation that implies that all resources are of equal quality and also they are equally suited for the production of both commodities falls under:

increasing costs of PPF
decreasing costs of PPF
zero costs of PPF
constant costs of PPF

MCQ 204: A tax that is a fixed amount, no matter the change in circumstance of the taxed entity is known as:

property tax
fixed tax rate
marginal tax
lump-sum tax

MCQ 205: The policy regime that encourages exports, discourages imports, controls capital movement, and centralizes currency decisions in the hands of a central government is known as:

mercantilism
neo mercantilism
comparative advantage
absolute advantage

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