Quiznetik

Principles of Internation Business for Tourism | Set 1

1. Coverage of risks due to fluctuating exchange rates is known as ---------

Correct : C. Hedging

2. The demand for foreign exchange is determined by country’s ------------

Correct : B. Imports

3. Purchasing power purity theory was introduced by ------------

Correct : B. Cassel

4. EURO is the currency of ----------------

Correct : A. European Union

5. The currency of Italy is ----------------

Correct : A. Euro

6. EXIM Bank of India was set up in ---------------

Correct : B. 1982

7. The difference between buying and selling rate is called

Correct : C. Spread

8. The rate at which the exchange dealer is ready to buy a currency as known as ----------------

Correct : D. Bid rate

9. The members of the IMF are the members of --------------

Correct : D. IBRD

10. World Bank is also known as --------------------

Correct : A. IBRD

11. Balance of Trade is a ----

Correct : B. Flow Concept

12. Which one of the following items in the balance of payments is invisible

Correct : A. Travel

13. Gold standard is an example of

Correct : B. Fixed exchange rate

14. Flexible exchange rate is based on the concept of

Correct : C. Demand and supply

15. A BOP surplus can be corrected through --------------

Correct : C. Appreciation

16. BOP deficit can be corrected through --------------

Correct : B. Increasing exports

17. Foreign exchange is demanded by -------------

Correct : C. Importers

18. Devaluation will improve when elasticity of demand of country’s export and import is

Correct : D. Greater than one

19. Deficit BOP can be solved by --------------------

Correct : C. Both a and b

20. Floating exchange rate become common in ----------------

Correct : B. 1970’s

21. The ASEAN was established in --------------------

Correct : A. 1967

22. The difference between the value of goods and services exported and imported is called -------------

Correct : B. BOT

23. The convertibility of dollar was formally abandoned in ---------------

Correct : D. 1971

24. Soft loans to underdeveloped countries are disbursed by -----------

Correct : A. IDA

25. IFC was established in ----------------

Correct : B. 1956

26. GATT came into existence in ----------------

Correct : C. 1948

27. SDRs scheme was initiated in -------------------

Correct : C. 1970’s

28. India is a member of -------------

Correct : D. All the above

29. Regional member of the Asian Development Bank is

Correct : A. India

30. GATT was changed to ---------------

Correct : A. WTO

31. IMF started its functioning from

Correct : A. 1947

32. Which are known as Bretton Wood Twins?

Correct : C. IMF & IBRD

33. The headquarter of world Bank is at ------------------

Correct : A. Washington DC

34. The equilibrium exchange rate is determined by ---------------

Correct : C. Demand and Supply of currencies

35. Determining the exchange rate at a higher level than prevailing in the foreign exchange market is known as ------------

Correct : A. Pegging up

36. FEMA is known as -------------

Correct : A. FEMA 1999

37. According to PPP theory the exchange rate between two currencies are determined by their ------------

Correct : A. Relative price level

38. In the exchange rate determination PPP theory considers --------

Correct : B. Inflation rates

39. The rate at which one currency is exchanged for another is known as ------------

Correct : C. Exchange rate

40. The objective of IDA is

Correct : C. Improve living conditions

41. Smithsonian Agreement was signed in the year ---------

Correct : D. 1971

42. The objective of IMF is

Correct : B. Exchange rate stability

43. SDRs are also known as -----------

Correct : C. Paper gold

44. IBRD was established in

Correct : D. 1945

45. The official decrease in the value of a currency is known as ---------

Correct : B. Devaluation

46. Globalised economics prefer------------

Correct : C. Flexible system

47. The European Union was formed in

Correct : C. 1952

48. Which is known as soft loan window of IBRD

Correct : D. IDA

49. IFC was established in ------------

Correct : D. 1956

50. Yen is the currency of ----------

Correct : D. Japan

51. A deficit BOP exists, when -----------------

Correct : B. Receipts< payments

52. IBRD is also known as ---------------

Correct : C. World Bank

53. Bretton wood twins are ------------------

Correct : C. IBRD & IFC

54. UNCTAD was constituted in -----------

Correct : D. 1964

55. WTO came into existence with a membership of ------------------

Correct : B. 125

56. GATT was constituted in ----------------

Correct : C. 1948

57. The Indian Currency code used in foreign exchange market is

Correct : A. INR

58. --------------- takes into account only merchandize exports and imports

Correct : B. BOT

59. Which is known as paper gold

Correct : B. SDRs

60. Increase in the value of a currency is known as --------------

Correct : C. Appreciation

61. Decrease in the value of a currency is known as -------------

Correct : A. Depreciation

62. IMF created buffer stock financing facility in -----------

Correct : B. 1969

63. SDRs are popularly known as ------------------

Correct : B. Paper gold

64. IDA was established in -------------

Correct : A. 1960

65. The President of IBRD is the head of ---------------

Correct : B. IDA

66. The membership of the IDA is open to all membership of -----------

Correct : D. IBRD

67. Part I members of IDA are called -------------------

Correct : A. G24 members

68. IFC was established in -------------

Correct : A. 1956

69. IDA loans are known as -------------

Correct : B. IDA credits

70. IDA grants loans to those projects which are not financed by -------

Correct : C. IBRD

71. Which is the largest financial market in the world

Correct : C. Foreign exchange market

72. FEMA is enacted by ---------

Correct : A. Parliament of India

73. The currency of Austria

Correct : A. Euro

74. Which monetary system is suitable for global economies

Correct : C. Flexible

75. Smithsonian Agreement is for -----------------------

Correct : A. Saving bretton wood system

76. ------------------- system imposes a discipline an monetary authorities

Correct : B. Fixed

77. Speculation is not possible in the case of --------- system

Correct : C. Fixed

78. Increased capital inflows increases ------------------

Correct : B. Value of domestic currency

79. Political instability leads to ------------- in the value of that country’s currency

Correct : A. Decrease

80. -------------- is a social factor that influence the exchange rate

Correct : C. Changes in preferences

81. When exports increase, the supply of foreign currency -----------

Correct : A. Increases

82. When imports increase, the supply of foreign currency -------------

Correct : B. Decrease

83. Price index is considered in ---------------- theory of exchange rate determination

Correct : B. PPP theory

84. Capital outflows leads to increase in the ---------------

Correct : B. Demand for foreign currencies

85. A deficit budget leads to ----------------

Correct : A. Decrease in the value of domestic currency

86. Mint parity theory is suitable for ---------

Correct : A. Gold standard

87. Forex reserves of a country are held by ---------------------

Correct : B. Central Banks

88. Extending of economic activities across national boundaries is known as -------------

Correct : C. Globalization

89. The WTO is the successor to -------------

Correct : B. GATT

90. Central bank is likely to set policies and procedures to keep the exchange rate ------------------

Correct : B. Stable

91. ------------- of a country is the relation over a period between the values of her exports and the values of her imports

Correct : B. BOT

92. Devaluation raised the domestic price of --------------

Correct : B. Imports

93. Devaluation reduces the foreign price of --------------

Correct : A. Exports

94. Under gold standard the value of the currency unit was defined in terms of -------------

Correct : C. Gold

95. The ADB was set up in the year

Correct : D. 1966

96. The ADB is managed by -------------

Correct : C. President

97. Mahalanobis Strategy adopted in the -----------

Correct : B. 2ND five year plan

98. EXIM Bank of India was established in ---------------

Correct : C. 1982

99. Euro is a ----------

Correct : A. Basket Currency

100. The agreement, TRIPs and TRIMs are related to -------------

Correct : C. WTO