Quiz on Foreign Exchange Reserves (FOREX)
The General Knowledge Quiz or the 10 Multiple Choice
Questions listed below are helpful to various candidates preparing for Bank PO,
UPSC Civil Services and SSC, NDA etc exams. Take a look and solve the questions
based on FOREX or foreign exchange reserves in India
GK Quiz on FOREX
Take a look at the GK Quiz below consisting of 0 MCQs
on Foreign Exchange Reserve in India. The questions would help improve the
candidates knowledge on the subject.
Quiz
Que.1). Foreign Exchange Reserves are held in
a). Domestic Currency
b). Foreign Currency
c). Both a and b
d). Only gold
Ans. b
Que.2). Which country has the largest foreign currency
reserve?
a). UK
b). China
c). Japan
d). India
Ans. b
Que.3). Foreign exchange reserve cannot include
a). Banknotes
b). Deposits
c). Bonds
d). None of the above
Ans. d
Que.4). Where are the Foreign exchange reserves held
in India?
a). Finance Ministry
b). Central Treasury
c). Reserve Bank of India
d). All the nationalised banks
Ans. c
Que.5). What acts as the first defense for India
against the economic slowdown?
a). Foreign Exchange Reserves
b). Securities
c). Gold
d). Domestic Currency
Ans. a
Que.6). How often does the RBI publish a report on
management of FOREX?
a). 6 months
b). 3 months
c). 1 year
d). Every month
Ans. a
Que.7). What is true about the exchange rate system of
FOREX
i) It is either fixed against gold or some currency in
fixed system
ii) In clean floating system, central authority checks
fluctuations created by market forces on exchange rate
a). Only i
b). Only ii
c). Both i and ii
d). None of the above
Ans. a
Que.8). What are the benefits of following the fixed
exchange rate system?
a). Minimal exchange rate fluctuations
b). Reduction in volatility and fluctuations in prices
c). Imposition of discipline on the monetary authority
d). All of the above
Ans. d
Que.9). What is the nominal exchange rate?
a). Number of units of domestic currency, one must
give up to get an unit of foreign currency
b). Price of foreign currency in terms of domestic
currency
c). Ratio of foreign to domestic prices, measured in
the same currency
d). Both a and b
Ans. d
Que.10). What is Devaluation of currency?
i) When the value of domestic currency decreases in
relation to the value of foreign currency (flexible system)
ii) Fall in the value of domestic currency in relation
to foreign currency as planned by the Central Bank (Fixed system)
a). Only i
b). Only ii
c). Both i and ii
d). None of the above
Ans. b
No comments:
Post a Comment