The devaluation of currency of a country is done when1. it has adverse balance of payment.2. it has favourable balance of payment.Select the correct answer

The devaluation of currency of a country is done when<br>1. it has adverse balance of payment.<br>2. it has favourable balance of payment.<br>Select the correct answer

Which of the following statement is correct?
Statement I In currency quotation, the first currency is the base Currency and the second currency is known as the quoted currency.
Statement II A currency pair is generally represented by using a hyphen or an oblique.

A

Both statements are correct

B

Both statements are incorrect

C

Statement I is correct, but Statement II is incorrect

D

Statement II is correct, but Statement I is incorrect

Consider the following statements : The effect of devaluation of a currency is that it necessarily 1. improves the competitiveness of the domestic exports in the foreign markets 2. increase the foreign value of domestic currency 3. improves the trade balance Which of the above statements is/are correct?

A

1 only

B

1 and 2

C

3 only

D

2 and 3

The given statements are related to financial derivatives. Choose the correct answer for the statements being correct or incorrect.
Statement I A speculator will gain, if he sells foreign currency under a forward contract, when the spot price is higher than the forward price.
Statement II In currency futures, intra currency spread exists when a speculator buys/sells the same currency for two delivery dates.

A

Statement I is correct, but Statement II is incorrect

B

Statement II is correct, but Statement I is incorrect

C

Both statement are correct

D

Both statements are incorrect

Consider the following statements: 1. Tight monetary policy of US Federal Reserve could lead to capital flight. 2. Capital flight may increase the interest cost of firms with existing External Commercial Borrowings (ECBs). 3. Devaluation of domestic currency decreases the currency risk associated with ECBs. Which of the statements given above are correct?

A

1 and 2 only

B

2 and 3 only

C

1 and 3 only

D

1, 2 and 3

Which of the following option is correct?
Statement I Direct quote is when the foreign currency remains fixed and the home currency keeps on varying.
Statement II Quotations in direct quote are the ones that represent the value of a foreign currency in rupees (number of rupees per currency) are denoted as direct quotations.

A

Both statements are correct

B

Both statements are incorrect

C

Statement I is correct and Statement II is incorrect

D

Statement II is correct and Statement I is incorrect

Consider the following Statement (A) and Reason (R)
Statement (A): Foreign trade strengthen the economic base of any country.
Reason (R): Foreign trade is basically done to make BOP favourable : Balance of and for the items which are not available, for delivery in the country.
Now select the correct answer from the given cut outs.

A

Both (A) and (R) are true and (R) is the correct explanation of (A)

B

Both (A) and (R) are true and (R) is not the correct explanation of (A)

C

(A) is true, but (R) is false

D

(A) is false, but (R) is true

Which of the following statement is true?
Statement I Cross rate represents when one unit of foreign currency is represented in the terms of another foreign currency.
Statement II Cross rates are determined only with the help of domestic currency and the foreign currency.

A

Both statements are correct

B

Both statements are incorrect

C

Statement I is correct, but Statement II is incorrect

D

Statement II is correct, but Statement I is incorrect

In the following question, sentences of a paragraph have been jumbled and labelled as A, B, C and D. You are required to rearrange the jumbled sentences of the paragraph and mark your response accordingly by selecting the correct option. A: The opposite of demonetization is remonetization, in which a form of payment is restored as legal tender. B: Sometimes, a country completely replaces the old currency with new currency. C: The current form or forms of money is pulled from circulation and retired, often to be replaced with new notes or coins. D: Demonetization is the act of stripping a currency unit of its status as legal tender.

A

DCBA

B

DCAB

C

DBCA

D

ADCB

What are the reasons for the people's resistance to the introduction of Bt brinjal in India? 1.Bt brinjal has been created by inserting a gene from a soil fungus into its genome. 2.The seeds of Bt brinjal are terminator seeds and therefore, the farmers have to buy the seeds before every season from the seed companies. 3.There is an apprehension that the consumption of Bt brinjal may have an adverse impact on health. 4.There is some concern that the introduction of Bt brinjal may have an adverse effect on biodiversity. Select the correct answer using the codes given below:

A

1, 2 and 3 only

B

2 and 3 only

C

3 and 4 only

D

1, 2, 3 and 4

In the following passage, some of the words have been left out. Read the passage carefully and select the correct answer for the given blank out of the four alternatives. ________________ various signs of economic slowdown such as languishing industrial production and adverse __________________of the drought on rural livelihoods and demand, the government is apparently unable ____________________ unwilling to increase public spending to _________________ peoples material distress or to kick-start economic ____________________ to increase employment.
adverse __________________of the drought on rural livelihoods and demand

A

effects

B

effect

C

affects

D

affect

The devaluation of currency of a country is done when
1. it has adverse balance of payment.
2. it has favourable balance of payment.
Select the correct answer

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