Question : When domestic currency gains value in relation to a foreign currency in the international market, it is termed as a situation of:
Option 1: Currency Depreciation
Option 2: Currency Appreciation
Option 3: Currency Devaluation
Option 4: None
Correct Answer: Currency Appreciation
Solution : The correct answer is (b) Currency Appreciation.
When the domestic currency gains value in relation to a foreign currency in the international market, it is termed as a situation of currency appreciation.
Question : The Indian Government launched Incredible India campaign to promote tourism in India? How it will impact the exchange rate?
Option 1: Appreciation of domestic currency
Option 2: Outflow of foreign exchange
Option 3: Depreciation of domestic currency
Question : It is a system in which value of countries currency is allowed to change in relation to others, but is controlled by central bank to keep it within a particular range.
Option 1: Hedging
Option 2: Speculation
Option 3: Dirty floating
Option 4: None of the above.
Question : How did the resolution of language conflicts impact national integration in India?
Option 1: It led to further division
Option 2: It strengthened national unity
Option 3: It had no significant impact
Option 4: It increased external influences
Question : Case Study 5:
LMN Corporation is a multinational conglomerate looking to manage its currency exposure effectively.
Question :
If LMN Corporation decides to issue short-term debt to finance its international operations, which money market instrument might it use?
Option 1: Corporate bond
Option 2: Call money
Option 3: Treasury bill
Option 4: Commercial paper
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