We have compiled the NCERT/CBSE chapter-wise Multiple Choice Class 12 Economics Chapter 6 Open Economy Macroeconomics with Answers by expert subject teacher for latest syllabus and examination. Prepare effectively for the exam taking the help of the Class 12 Economics Objective Questions PDF free of cost from here. Students also can take a free test of the Multiple Choice Questions of Open Economy Macroeconomics. Each question has four options followed by the right answer. Download the Economics Quiz Questions with Answers for Class 12 Pdf and prepare to help students understand the concept very well.
MCQ Questions for Class 12 Macroeconomics with Answers: Introductory Macroeconomics
Question1.
What is the cause of the devaluation of any country’s currency?
(i) Increase in the domestic inflation rate
(ii) Domestic real interest rates are less than foreign interest rates
(iii) Much increase in the income
(iv) All of these
(iv) All of these
Question2.
Increase in the value of foreign commodities is known as _
(i) Revaluation
(ii) Devaluation
(iii) Inflation
(iv) None of these
(ii) Devaluation
Question3.
What is the relationship between demand for foreign exchange and exchange rate?
(i) Inverse;
(ii) Direct;
(iii) One to one;
(iv) No relationship
(i) Inverse
Question4.
Other things remaining the same, when in a country the market price of foreign currency falls, national income is likely:
(i) to rise
(ii) to fall
(iii) to rise or to fall
(iv) to remain unaffected
(ii) to fall
Question5.
The operation of future delivery in the foreign exchange market is known as
(i) Spot market
(ii) Current market
(iii) Forward market
(iv) Domestic market
(iii) Forward market
Question6.
The operation of daily nature in the foreign exchange market is known as __
(i) Spot market
(ii) Forward market
(iii) Domestic market
(iv) International market
(i) Spot market
Question7.
In which of the following categories are economic transactions of balance of trade recorded?
(i) Visible items;
(ii) Invisible items;
(iii) Capital items;
(iv) All of the above
(i) Visible items;
Question8.
What is the relationship between supply of foreign exchange and exchange rate?
(i) Inverse
(ii) Direct
(iii) One to one
(iv) No to relationship: Direct
(ii) Direct
Question9.
Trade of visible items between the countries is known as
(i) Balance of Payment
(ii) Balance of Trade
(iii) Deficit Balance
(iv) All of these
(ii) Balance of Trade
Question10.
Hybrid in management of fixed and flexible exchange rate is known as __
(i) Managed to float
(ii) Crawling Peg
(iii) Wider Bands
(iv) None of these
(i) Managed floating
Question11.
The exchange rate at which demand for foreign currency becomes equal to its supply,
is called:
(i) Equal rate of exchange;
(ii) Unequal rate of exchange;
(iii) Equilibrium rate;
(iv) All of these
(iii) Equilibrium rate;
Question12.
Balance of trade is measured as :
(i) Difference between import and export goods
(ii) Difference between import and export services
(iii) Difference between import and export of capital
(iv) Difference between all export and all imports: Difference between import and export goods
(i) Difference between import and export goods
Question13.
When there is a favourable balance of trade?
(i) X > M
(ii) X = M
(iii) X < M
(iv) None of these
(i) X > M
Question14.
When was the gold standard abandoned?
(i) 1930’s
(ii) 1920’s
(iii) 1940’s
(iv) 1950’s
(ii) 1920’s
Question15.
Which of the following items relate to BoP which :
(i) Foreign investment
(ii) Loans
(iii) NRI remittance
(iv) All of these
(iv) All of these
Question16.
The trade of visible and invisible items is known as _
(i) Balance of Payments
(ii) Balance of Trade
(iii) Deficit of interest
(iv) Profit
(i) Balance of Payments
Question17.
Which one is a merit of the fixed exchange rate?
(i) Promotes Foreign Trade
(ii) Induces Foreign Capital
(iii) Increases Capital Formation
(iv) All the above
(iv) All the above
Question18.
Foreign exchange is determined by:
(i) Demand for foreign currency
(ii) Supply of foreign currency
(iii) Demand and supply in the foreign exchange market
(iv) None of the above
(iii) Demand and supply in a foreign exchange market
Question19.
The foreign exchange rate is determined by:
(i) Government
(ii) Bargaining
(iii) World Bank
(iv) Demand and Supply forces
(iv) Demand and Supply forces
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MCQ Questions for Class 12 Macro 12 with Answers: Introductory Macro 12
- Lesson 1. Introduction to Macro 12 Class 12 MCQ Questions
- Lesson 2. National Income Accounting Class 12 MCQ Questions
- Lesson 3. Money and Banking Class 12 MCQ Questions
- Lesson 4. Determination of Income and Employment Class 12 MCQ Questions
- Lesson 5. Government Budget and the Economy Class 12 MCQ Questions
- Lesson 6. Open Economy Macro 12 Class 12 MCQ Questions
MCQ Questions for Class 12 12 Indian Economic Development with Answers
- Lesson 1. Indian Economy on the Eve of Independence Class 12 MCQ Questions
- Lesson 2. Indian Economy 1950-1990 Class 12 MCQ Questions
- Lesson 3. Liberalisation, Privatisation and Globalisation: An Appraisal Class 12 MCQ
- Lesson 4. Poverty Class 12 MCQ Questions
- Lesson 5. Human Capital Formation in India Class 12 MCQ Questions
- Lesson 6. Rural Development Class 12 MCQ Questions
- Lesson 7. Employment: Growth, Informalisation and Other Issues Class 12 MCQ
- Lesson 8. Infrastructure Class 12 MCQ Questions
- Lesson 9. Environment and Sustainable Development Class 12 MCQ Questions
- Lesson 10. Comparative Development Experiences of India and its Neighbours Class 12 MCQ