12th class Principle of Banking chapter 12 online mcq test with answers for ICom part 2 Principle of Banking Chapter 12 (Foreign Exchange Transaction)

Principles of Banking Icom Part 2 English Medium Chapter 12 Online Test

Sr. #	Questions	Answers Choice
1	The rate of exchange determined by two countries following non-convertible paper currency system is a point where	The purchasing power of currency is same The purchasing power of currency is different The purchasing power of currency is zero None of the above
2	The money sent through post office from one country to another	Traveller's cheque Bank draft Letter of credit International money order
3	The term foreign exchange includes	Bank draft Letter of credit Foreign B/E All the above
4	Which of the following theories is associated with the working of international gold standard	Mint par parity theory Purchasing power theory Balance of payments theory All of the above
5	Which of the following rate keeps the balance of payments in equilibrium	Discount rate Interest rate Exchange rate Market rate
6	Foreign exchange control reduces the	Circulation of capital Export of capital Import of capital None of the above
7	What is the objective of foreign exchange control	To stabilize exchange rate To increase government revenue Favorable balance of payment All the above
8	Which of the following changes cause to change in foreign exchange rate	Change in export and imports Change in capital flow Change in bank rate All the above
9	Upper specie point is got by adding the delivery charges in following metal	Silver Gold Iron Copper
10	The more increase in exchange rate for a country under gold standard is called	Lower specie point Middle specie point Upper specie point None of the above
11	The change in demand and supply of foreign currency effects	Exchange rate Traveller's L.C Letter of credit None of these
12	If the demand of any country's currency increases then rate of exchange becomes	Favorable Unfavorable Both a and b None of these
13	The price of one country's currency in term other country's currency is called	Foreign currency Traveller's L.C. Exchange rate None of these
14	Which method is mostly used in making foreign payment	Foreign bills of exchange By post By telegraph None of these
15	Generally, the instruments which are used in foreign receipts and payments called	Exchange rate Foreign exchange Letter of credit All of the above

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