laboursonline – MCQs, Mock Tests | ICSE XII MCQ Questions for Class 12 Economics Set-7

Who issues 1 rupee note in India:

1. Reserve Bank of India
2. Finance Ministry of India
3. State Bank of India
4. None of these

✅ Correct Answer: 2

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

1. Foreign exchange rate
2. Trade rate
3. Interest rate
4. Balance of Payment

✅ Correct Answer: 1

Increase in the value of foreign commodities is known as _________

1. Revaluation
2. Devaluation
3. Inflation
4. None of these

✅ Correct Answer: 2

Decrease in the value the foreign commodities is known as _________

1. Revaluation
2. Devaluation
3. Deflation
4. All of these

✅ Correct Answer: 1

What is the cause of the devaluation of any country’s currency?

1. Increase in the domestic inflation rate
2. Domestic real interest rates are less than foreign interest rates
3. Much increase in the income
4. All of these

✅ Correct Answer: 4

The operation of daily nature in the foreign exchange market is known as ________

1. Spot market
2. Forward market
3. Domestic market
4. International market

✅ Correct Answer: 1

The operation of future delivery in the foreign exchange market is known as ________

1. Spot market
2. Current market
3. Forward market
4. Domestic market

✅ Correct Answer: 3

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

1. Managed to float
2. Crawling Peg
3. Wider Bands
4. None of these

✅ Correct Answer: 1

When was the gold standard abandoned?

1. 1930’s
2. 1920’s
3. 1940’s
4. 1950’s

✅ Correct Answer: 2

Trade of visible items between the countries is known as ________

1. Balance of Payment
2. Balance of Trade
3. Deficit Balance
4. All of these

✅ Correct Answer: 2

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

1. Balance of Trade
2. Balance of Payment
3. Trade Surplus
4. Trade Deficit

✅ Correct Answer: 1

When there is a favourable balance of trade?

1. X > M
2. X = M
3. X < M
4. None of these

✅ Correct Answer: 1

When there is unfavourable balance of trade?

1. X > M
2. X = M
3. X < M
4. None of these

✅ Correct Answer: 3

The trade of visible and invisible items is known as _________

1. Balance of Payments
2. Balance of Trade
3. Deficit of interest
4. Profit

✅ Correct Answer: 1

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

1. Likely to rise
2. Likely to fall
3. Likely to rise and fall both
4. Not affected

✅ Correct Answer: 1

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

1. To rise
2. To fall
3. To rise or to fall
4. To remain affected

✅ Correct Answer: 2