s

1. QUIZ
By
Syed Qayyum Ali Shah
MBA
COMSATS

2. Q#1. A lower interest rate discourages out flow of
capital and value of the domestic currency
depreciate.
A. True
B. False
C. Chance of more loan available
D. Chance of low deposit

3. Ans = A

4. Q#2. Which theory state that the rise interest, lower
demand for money and domestic currency
depreciate.
A. BOP theory
B. Flexible price version
C. Sticky price version
D. Portfolio balance approach

5. Ans = B

6. Q#3. ____________ Currency gains or losses from
nominal exchange rate changes will be offset by the
difference in relative rate of inflation.
A. If real exchange rate is constant.
B. If inflation rate is fluctuating.
C. If real exchange rate is lower than nominal.
D. Non of above.

7. Ans = A

8. Round 2

9. Q#4. In a foreign exchange market where different
currencies are bought and sold, it is essential to
know__________.
A. The buying and selling rate of different currencies.
B. The ratio between different currencies.
C. Over the counter exchange market Concept.
D. Forex Concept.

10. Ans = B

11. Q#5. The relationship between ____________is
similar to that between the general price index and
the price of an individual commodity.
A. Effective and nominal exchange rate
B. Real and nominal exchange rate
C. Effective and real exchange rate
D. Both A & B

12. Ans = A

13. Thank you!