12th Class Economics Foreign Exchange Rate Question Bank MCQs - Foreign Exchange Rate

  • question_answer
    From the following statements given in Column I and Column II, choose the correct pair of statements:
    Column I Column II
    (A) Depreciation of currency 1. Positively related to exchange rate
    (B) Appreciation of currency 2. Inversely related to  exchange rate
    (C) Demand for foreign currency 3. Rise in exports, fall in imports
    (D) Supply foreign  currency 4. Fall in exports, rise in imports

    A) A - 3, B - 4, C - 2, D - 1

    B) A - 4, B - 3, C - 2, D - 1

    C) A - 1, B - 2, C - 3, D - 4

    D) A - 2, B - 4, C - 3, D - 1

    Correct Answer: A

    Solution :

    [a] A - 3, B - 4, C - 2, D - 1


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