International Trade TY BCOM SEM VI

The exchange rate between two currencies under the gold standard was determined by______

• Mint parity

• Purchasing power parity

• Exchange rate parity

• Currency parity

Under IMF the _____________was accepted as an international reserve currency.

• British pound

• US Dollar

• Euro

• Franc

In 1960s the IMF system came under stress due to which of the following reasons?

• Huge accumulated surplus in US budget

• Limited gold movement between countries

• Huge accumulated deficit in US budget

• Financial and banking crisis in the US

Under ____________a nation rigidly fixes the exchange rate of its currency to a foreign currency in order to fight inflation and deep financial crisis.

• Eurozone Arrangements

• Currency board arrangements

• Dollarization

• Managed flexibility

_____________is a system under which the exchange rate is determined in the market by forces of demand and supply.

• Dirty float

• Crawling peg

• Managed float

• Free float

Under ___________ the par values to change by small preannounced amounts or percentages at frequent and specified intervals.

• Dirty float

• Crawling peg

• Managed float

• Free float

The IMF started to operate in

• 1995

• 1947

• 1944

• 1954

Between 1947 and 1971, India followed the

• Par value system

• Basket-peg system

• Managed flexible system

• LERMS

LERMS was introduced in

• 1991

• 1980

• 1992

• 2000

In order to prevent appreciation of the rupee against the US $, the RBI will

• Sell US $

• Sell bonds

• Buy bonds

• Buy US $