Class 12 Economics Chapter 12 Open Economy Macroeconomics MCQ Questions with Answer

Open Economy Macroeconomics Class 12 MCQ is one of the best strategies to prepare for the CBSE Class 12 Board exam. If you want to complete a grasp concept or work on one’s score, there is no method except constant practice. Students can improve their speed and accuracy by doing more MCQ on Open Economy Macroeconomics Class 12 with Answers which will help them all through their board test.

Open Economy Macroeconomics Class 12 MCQ Questions with Answers

Class 12 Economics MCQ with answers are given here for Chapter 12 Open Economy Macroeconomics. These MCQs are based on the latest CBSE board syllabus and relate to the latest Class 12 Economics syllabus. By Solving these Class 12 MCQs, you will be able to analyze all of the concepts quickly in the chapter and get ready for the Class 12 Annual exam.

Learn Class 12 Open Economy Macroeconomics MCQ PDF with Answers according to the latest CBSE and NCERT syllabus. Students should prepare for the examination by solving the CBSE Open Economy Macroeconomics Class 12 MCQ with answers given below.

Question 1. What is the relationship between demand for foreign exchange and exchange rate?
a. Inverse;
b. Direct;
c. One to one;
d. No relationship

Question 2. What is the relationship between supply of foreign exchange and exchange rate?
a. Inverse;
b. Direct;
c. One to one;
d. No relationship
Ans: (b)

Question 3. If Rs 150 are required to buy $ 2, instead of Rs100 earlier, then:
a. Domestic currency has depreciated;
b. Domestic currency has appreciated;
c. Rupee value of import bill will increase;
d. Both (a) and (c) (d)

Question 4. In which of the following categories are economic transactions of balance of trade recorded?
a. Visible items;
b. Invisible items;
c. Capital items;
d. All of the above

Question 5. The exchange rate at which demand for foreign currency becomes equal to its supply,
is called:
a. Equal rate of exchange;
b. Unequal rate of exchange;
c. Equilibrium rate;
d. All of these

Question 6.Which one is a merit of flexible exchange rate ?
(a) Simple System
(b) Continuous Adjustments
(c) Improves Balance of Payments
(d) All the above

Question 7. Which one is a kind of fixed exchange rate ?
(a) Gold Standard System of Exchange Rate
(b) Bretton Woods System of Exchange Rate
(c) Both (a) and (b)
(d) None of the above

Question 8. Which one is a king of exchange rate ?
(a) Fixed Exchange Rate
(b) Flexible Exchange Rate
(c) Both (a) and (b)
(d) None of the above

Question 9. Which one is a demerit of the fixed exchange rate?
(a) Ignores National Interests
(b) Restricted Movement of Capital
(c) Sudden Fluctuations in Exchange Rates
(d) All the above

Question 10. Which one is the visible item of Balance of Payments ?
(a) Machine
(b) Cloth
(c) Cement
(d) All of these

Whoever needs to take the CBSE Class 12 Board Exam should look at this MCQ. To the Students who will show up in CBSE Class 12 Economics Board Exams, It is suggested to practice more and more questions. Aside from the sample paper you more likely had solved. These Open Economy Macroeconomics Class 12 MCQ are ready by the subject specialists themselves.

Question 11. Trade of visible items between the countries is known as ________
(a) Balance of Payment
(b) Balance of Trade
(c) Deficit Balance
(d) All of these

Question 12. Which one is a source of the demand for foreign exchange?
(a) Imports of Goods and Services from Abroad
(b) Investment in Foreign Nations
(c) Gift Scheme to Foreign Nations
(d) All the above

Question 13. Balance of trade means:
(a) Capital transactions
(b) Import and export of goods,
(c) Total credit and debit
(d) All of the above

Question 14. The price of one currency in terms of another is known as _________
(a) Foreign exchange rate
(b) Trade rate
(c) Interest rate
(d) Balance of Payment

Question 15. Which items are included in the balance of trade?
(a) Invisible Item
(b) Capital Transfer
(c) Visible Item
(d) All of these

Question 16. Which one is the invisible item of Balance of Payment?
(a) Banking
(b) Shipping
(c) Communication
(d) All of these

Question 17. Other things remaining the same, when in a country the market price of foreign currency falls, national income is likely:
(a) To rise
(b) To fall
(c) To rise or to fall
(d) To remain affected

Question 18. Which one is the item of the Current Account?
(a) Import of Visible Items
(b) Expenses of Tourists
(c) Exports of Visible Items
(d) All the above

Question 19. Decrease in the value the foreign commodities is known as _________
(a) Revaluation
(b) Devaluation
(c) Deflation
(d) All of these

Question 20. The operation of future delivery in the foreign exchange market is known as ________
(a) Spot market
(b) Current market
(c) Forward market
(d) Domestic market

You can easily get good marks If you study with the help of MCQ on Open Economy Macroeconomics Class 12 with Answers. We trust that information provided is useful for you. NCERT Class 12 Open Economy Macroeconomics MCQ Free Download would without a doubt create positive results.

We hope the information shared above in regards to Open Economy Macroeconomics Class 12 MCQ with Answers has been helpful to you. If you have any questions regarding the CBSE MCQ on Open Economy Macroeconomics Class 12 with Answers, write a comment below and we will get back to you as soon as possible.