Economics Entrance Exam MCQs – Mock Test 53

Functions of Foreign Exchange Market Quiz with Answers PDF Download – Test 53

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Free Functions of Foreign Exchange Market Quiz App Download: An investment to reduce the risk of adverse price movements in an asset is known as; MCQ with answers: speculation, currency swap, arbitrage, and hedging. Solve foreign exchange markets and exchange rates questions and answers to improve problem solving skills for economics learning goals.

Functions of Foreign Exchange Market Quiz – Mock Test 53 PDF Download

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

currency swap
speculation
hedging
arbitrage

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

price floor
price ceiling
binding
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:

demand curve
supply curve
isoquant
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:

balance of payments
creditor nation
international investment position
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:

elastic
inelastic
zero
slightly inelastic

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