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With reference to foreign exchange rate theory, which of the following statement is/are correct?
(1) Mint Parity theory is applicable in inconvertible paper currency standard.
(2) Balance of Payment theory was propounded by Prof. Gustav Cassel.
Select the correct answer

With reference to foreign exchange rate theory, which of the following statement is/are correct?
(1) Mint Parity theory is applicable in inconvertible paper currency standard.
(2) Balance of Payment theory was propounded by Prof. Gustav Cassel.
Select the correct answer Correct Answer Neither 1 nor 2

Related Questions

Under foreign exchange risk measurement, economic risk emerges out of which of the following?
1. Riskiness of company's foreign exchange positions resulting from its business activities.
2. The holding period or length of time over which the foreign exchange position is planned to be held.
3. A change in the present value of the future after tax cash flows due to changes in exchange rates.
4. The unit of currency to be used for the denomination of the value of currency.
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.
An odd-parity generator produces an odd-parity bit to go along with the data. The parity of the transmitted data is _____ An XOR gate can test each received word for parity rejecting words with _____ parity.
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.
Which of the following statements are not correct in relation to pre-shipment credit in foreign currency?
Statement I It is a foreign currency loan available, both, to the importers and exporters.
Statement II It is self-liquidating in nature and can be liquidated by purchasing/discounting of bills.
Statement III Refinance from RBI is available to banks against pre-shipment credit in foreign currency.
Statement IV The interest rare shall not exceed 1.75% above six months, LIBOR for the initial period of one month.
In a year-end examination, 6 papers-Maths, Physics, Geography, Economics, Chemistry, History- are scheduled on 6 consecutive days of a week (Monday -Saturday). 1. Maths paper is after the Chemistry paper, with a 1-day gap between them. 2. Physics paper is on Monday. 3. Geography paper is not on the last day. 4. History paper, which is scheduled on the previous day of the Maths paper, has a two-day gap with the Physics paper. In the above description, the History paper was cancelled due to incompletion of syllabus and the exam was scheduled for five days (Monday - Friday), with the order of the papers reversed. Which paper was scheduled on Thursday? 
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.
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.
The currency exchange rate system in which the exchange rate is determined by demand and supply of currency in the foreign exchange market is called 
In a year-end examination, 6 papers-Maths, Physics, Geography, Economics, Chemistry, History- are scheduled on 6 consecutive days of a week (Monday -Saturday). 1. Maths paper is after the Chemistry paper, with a 1-day gap between them. 2. Physics paper is on Monday. 3. Geography paper is not on the last day. 4. History paper, which is scheduled on the previous day of the Maths paper, has a two-day gap with the Physics paper. Which paper is scheduled on Saturday?