Description : When there is an official change in the exchange rate of domestic currency, then it is called (1) Appreciation (2) Depreciation (3) Revaluation (4) Deflation
Last Answer : (2) Depreciation Explanation: Revaluation is a calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold ... . central bank) can alter the official value of the currency. It is opposite of devaluation.
Description : A market-determined decrease in the d4ollar price of the pound is associated with: A. Revaluation of the dollar B. Devaluation of the dollar C. Appreciation of the dollar D. Depreciation of the dollar
Last Answer : C. Appreciation of the dollar
Description : A market-determined increase in the dollar price of the pound is associated with: A. Revaluation of the dollar B. Devaluation of the dollar C. Appreciation of the dollar D. Depreciation of the dollar
Description : Under a floating exchange rate system, an increase in U.S. imports of Japanese goods will cause the demand schedule for Japanese yen to: A. Increase, inducing a depreciation in the yen B. ... C. Increase, inducing an appreciation in the yen D. Decrease, inducing an appreciation in the yen
Last Answer : C. Increase, inducing an appreciation in the yen
Description : The ratio of foreign rates to domestic rates measured in the 'same' currency is known as: a) Real exchange rate b) Nominal exchange rate c) Superfluous exchange rate d) None of the above
Last Answer : a) Real exchange rate
Description : By which rate is the domestic current rate of currency converted into foreign currency? A. Bank Rate B. CRR C. Stock Exchange Rate D. Repo Rate E. Exchange Rate
Last Answer : E. Exchange Rate Explanation: An exchange rate aka a (foreign-exchange rate, forex rate, FX rate or Agio) between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country‘s currency in terms of another currency.
Description : Under a pegged exchange-rate system, which does not explain why a country would have a balance-of payments deficit? A. Very high rates of inflation occur domestically B. Foreigners ... . Technological advance is superior abroad D. The domestic currency is undervalued relative to other currencies
Last Answer : The domestic currency is undervalued relative to other currencies
Description : PSA 315 requires that the auditor should obtain an understanding of relevant industry, regulatory and other external factors including the applicable financial reporting framework. Which of the ... Inflation and currency revaluation c. Market and competition d. Cyclical or seasonal activity
Last Answer : Inflation and currency revaluation
Description : Net National Product in National Income Accounting refers to - (1) Gross Domestic Product—Depreciation (2) Gross Domestic Product + Subsidies (3) Gross National Product—Depreciation (4) Gross National Product + Subsidies
Last Answer : (3) Gross National Product-Depreciation Explanation: Net national product at market price is the market value of the output of final goods and services produced at current price in one year of ... the depreciation charges from the gross national product, we get net national product at market price.
Description : Gross National Product - Depreciation Allowance =? (1) Per Capita Income (2) Gross Domestic Product (3) Personal Income (4) Net National Product
Last Answer : (4) Net National Product Explanation: Net National product (NNP) is Gross National Product minus a depreciation allowance for the wearing out of machines and buildings during the period. In other words, NNP= ... Since NNP counts only the net additions to the nation's stock, it is less than GNP.
Description : What is the Gross National Product minus the depreciation? a) Gross Domestic Product b) Gross National Product c) Net Domestic Product d) Net National product
Last Answer : d) Net National product
Description : What is the sum total of gross value added of all the firms in the country minus the depreciation? a) Gross Domestic Product b) Gross National Product c) Net Domestic Product d) Net National product
Last Answer : c) Net Domestic Product
Description : Gross National Product – Depreciation Allowance = ? (1) Per Capita Income (2) Gross Domestic Product (3) Personal Income (4) Net National Product
Last Answer : Net National Product
Description : Net National Product in National Income Accounting refers to (1) Gross Domestic Product— Depreciation (2) Gross Domestic Product + Subsidies (3) Gross National Product— Depreciation (4) Gross National Product + Subsidies
Last Answer : Gross National Product— Depreciation
Description : )A currency having a falling exchange rate due to continuing balance of payments deficit is called a- (1) Soft currency (2) Hard currency (3) Scarce currency (4) Surplus currency
Last Answer : (1) Soft currency Explanation: Soft currency is a currency with a value that fluctuates as a result of the country's political or economic uncertainty which may be due to balance of payments ... set unrealistically high exchange rates, pegging their currencies to a currency such as the U.S. dollar
Description : A currency having a falling exchange rate due to continuing balance of payments deficit is called a (1) Soft currency (2) Hard currency (3) Scarce currency (4) Surplus currency
Last Answer : Soft currency
Description : A currency whose exchange rate is influenced by the government is a/an - (1) Unmanaged Currency (2) Managed Currency (3) Scarce Currency (4) Surplus Currency
Last Answer : (2) Managed Currency Explanation: Managed currency refers to currency whose ex-change rate is not determined by the free-market forces of demand and supply but instead by the government's intervention through the country's central bank.
Description : Exchange rates for one currency against another currency, are known as: a) Real exchange rate b) Nominal exchange rate c) Superfluous exchange rate d) None of the above
Last Answer : b) Nominal exchange rate
Description : A currency whose exchange rate is influenced by the government is a/an (1) Unmanaged Currency (2) Managed Currency (3) Scarce Currency (4) Surplus Currency
Last Answer : Managed Currency
Description : The balance of payments of a country is in equilibrium when the - (1) demand as well as supply of the domestic currency are the highest (2) demand for the domestic currency is equal to its supply (3) demand for the domestic currency is the highest (4) demand for the domestic currency is the lowest
Last Answer : (2) demand for the domestic currency is equal to its supply Explanation: When the balance of payments (BOP) of a country is in equilibrium, the surplus or deficit is eliminated from the ... currency is equal to its supply. The demand and supply situation is thus neither favourable nor unfavourable.
Description : The balance of payments of a country is in equilibrium when the (1) demand as well as supply of the domestic currency are the highest (2) demand for the domestic currency is equal to its supply (3) demand for the domestic currency is the highest (4) demand for the domestic currency is the lowest
Last Answer : demand for the domestic currency is equal to its supply
Description : Is deflation "worse" than inflation?
Last Answer : When you are in a period of deflation people hold off buying goods and services on the sure knowledge that if they wait a while those goods will be available at a lower price. This then decreases ... burnt bank notes to keep warm as they were so worthless in comparison to wood and coal as fuel.
Description : Will the U.S. economy see hyperinflation, or deflation followed by hyperinflation?
Last Answer : There are several approaches to correcting our current monetary situation. I personally hope we don't see hyperinflation at all because we are weaning ourselves off the Fed and taking responsibility for our ... Iraq, using that money for infrastructure, and weaning America off the Fed bill by bill.
Description : Stagflation refers to a situation which is characterized by - (1) stagnant employment and deflation (2) deflation and rising unemployment (3) inflation and rising employment. (4) inflation and rising unemployment
Last Answer : (4) inflation and rising unemployment Explanation: Stagflation describes a situation where an inflation rate is high, the economic growth rate slows down, and unemployment remains steadily high ... economic policy since actions designed to lower inflation may exacerbate unemployment, and vice versa.
Description : Deflation is a situation in which - (1) The value of money is falling. (2) The price of goods is increasing. (3) The value of money is increasing. (4) The price level is stagnant.
Last Answer : (3) The value of money is increasing. Explanation: Deflation is a situation where the prices of goods and commodities in a country go down. i.e., there is negative inflation. This is caused ... conversely, deflation increases the real value of money - the currency of a national or regional economy.
Description : Stagflation is a situation of - (1) stagnation and deflation (2) stagnation and recession (3) stagnation and inflation (4) stagnation and recovery
Last Answer : (3) stagnation and inflation Explanation: Stagflation is a situation of stagnation in which the inflation rate is high, the economic growth rate slows down, and unemployment remains steadily high. Stagflation occurs ... t growing but prices are, which is not a good situation for a country to be in
Description : When too much money is chasing too few goods, the situation is - (1) deflation (2) inflation (3) recession (4) stagflation
Last Answer : (2) inflation Explanation: Demand-pull inflation is asserted to arise when aggregate demand in an economy outpaces aggregate supply. It involves inflation rising as real gross domestic product rises and ... few goods", since only money that is spent on goods and services can cause inflation.
Description : Pump priming should be resorted to at a time of? (1) Inflation (2) Deflation (3) Stagflation (4) Reflation
Last Answer : (2) Deflation Explanation: Pump priming is the action taken to stimulate an economy, usually during a recessionary/deflationary period, through government spending, and interest rate and tax reductions. ... the injection of funds, with the goal of prompting higher demand for goods and services.
Description : When too much money is chasing too few goods, the situation is - (1) Deflation (2) Inflation (3) Recession (4) Stagflation
Last Answer : (2) Inflation Explanation: Inflation occurs when too much money is chasing too few goods. The prevailing view in mainstream economics is that inflation is caused by the interaction of the supply of ... prices is a result from an increase in the supply of money by central banking authorities.
Description : Beyond a certain point deficit financing will certainly lead to - (1) inflation (2) deflation (3) recession (4) economic stagnation
Last Answer : (1) inflation Explanation: Deficit financing is a practice in which a government spends more money than it receives as revenue, the difference being made up by borrowing or minting new funds ... increasing the money supply and the purchasing power of the people which increases the aggregate demand.
Description : Stagflation refers to a situation which is characterised by (1) stagnant employment and deflation (2) deflation and rising unemployment (3) inflation and rising employment. (4) inflation and rising unemployment
Last Answer : inflation and rising unemployment
Description : Deflation is a situation in which (1) The value of money is falling. (2) The price of goods is increasing. (3) The value of money is increasing. (4) The price level is stagnant.
Last Answer : The value of money is increasing.
Description : Stagflation is a situation of (1) stagnation and deflation (2) stagnation and recession (3) stagnation and inflation (4) stagnation and recovery
Last Answer : stagnation and inflation
Description : When too much money is chasing too few goods, the situation is (1) deflation (2) inflation (3) recession (4) stagflation
Last Answer : inflation
Description : Beyond a certain point deficit financing will certainly lead to (1) inflation (2) deflation (3) recession (4) economic stagnation
Description : Pump priming should be resorted to at a time of ? (1) Inflation (2) Deflation (3) Stagflation (4) Reflation
Last Answer : Deflation
Description : In International Banking terms,”Appreciation” of Rupee means ________ A. Excess of exports over imports B. Purchasing power of rupee has come down C. Availability of less foreign currency vis-a-vis rupee D. Excess of imports over exports E. Availability of more foreign currency vis-a-vis rupee
Last Answer : C. Availability of less foreign currency vis-a-vis rupee Explanation: Currency Appreciation refers to increase in the value of domestic currency in terms of foreign currency. The domestic currency becomes more valuable and less of it is required to buy the foreign currency.
Description : "Legal Tender Money" refers to : (1) Cheques (2) Drafts (3) Bill of exchange (4) Currency notes
Last Answer : (4) Currency notes Explanation: Legal tender is a medium of payment allowed by law or recognized by a legal system to be valid for meeting a financial obligation. Paper currency and coins are common ... tender in many countries. Legal tender money is a type of payment that is protected by law.
Description : “Legal Tender Money” refers to : (1) Cheques (2) Drafts (3) Bill of exchange (4) Currency notes
Last Answer : Currency notes
Description : If we add……………. to net domestic production we get GDP (a) Depreciation ; (b) Direct tax ; (c) Indirect tax ; (d) Interest payment
Last Answer : (a) Depreciation ;
Description : The difference between Gross National Product (GNP) and Gross Domestic Product GDP) is (a) Excess of subsidies over indirect taxes ; (b) Depreciation ; (c) Net foreign income from abroad (d) Excess of indirect taxes over subsidies
Last Answer : (c) Net foreign income from abroad
Description : What is meant by 'Capital Gain'? (1) Part of profits added to the capital (2) Appreciation in the money value of assets (3) Additions to the capital invested in a business (4) None of these
Last Answer : (2) Appreciation in the money value of assets Explanation: A capital gain is a profit that results from a disposition of a capital asset, such as stock, bond or real estate, where the ... a capital gain represents an appreciation in value accruing over a prescribed period of time on the asset.
Description : What is meant by ‘Capital Gain’ ? (1) Part of profits added to the capital (2) Appreciation in the money value of assets (3) Additions to the capital invested in a business (4) None of these
Last Answer : Appreciation in the money value of assets
Description : Which exchange-rate system does not require monetary reserves for official exchange rate intervention? A. Floating exchange rates B. Pegged exchange rates C. Managed floating exchange rates D. Dual exchange rates
Last Answer : A. Floating exchange rates
Description : Prepare revaluation,partner's capital account and balance sheet
Last Answer : n,s and b were partner in a firm sharing profit and losses in proportion of 1/2,1/6,1/3 ... the firm as at 31st March ,2017 was as follows.
Description : On the admission of a partner, fictitious assets are– (A) Transferred to Revaluation Account (B) Transferred to Capital Account (C) Transferred to Reserves (D) Shown in the new Balance Sheet
Last Answer : Answer: Transferred to Revaluation Account
Description : The balance appearing in the books of a company at the end of year were CRR A/c Rs. 50,000, Security Premium Rs. 5,000, Revaluation Reserve Rs. 20,000, P & L A/c (Dr) Rs. 10,000. Maximum amount available for distribution of ... will be- (A) Rs. 50,000 (B) Rs. 55,000 (C) Rs. 45,000 (D) Rs. 57,000
Last Answer : Answer: Rs. 55,000
Description : Bonus shares can be issued by a company A. Out of the Reserves created by revaluation of fixed assets B. Out of share premium not collected in cash C. Without any provision for it in the Articles of Association of the company D. Out of free reserves built out of genuine profit
Last Answer : D. Out of free reserves built out of genuine profit
Description : 7. Which of the following statements is/are true? a. Business Investment Spending occurs when individuals buy stock in the stock market b. Productivity is the United States grew very slowly ... unemployment rate is too high d. Full employment occurs when there is no frictional unemployment
Last Answer : b. Productivity is the United States grew very slowly between 1973 and 1996