Foreign Exchange Market and Management of Exchange Rate MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Foreign Exchange Market and Management of Exchange Rate, a fundamental topic in the field of IC 89 Management Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Foreign Exchange Market and Management of Exchange Rate MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Foreign Exchange Market and Management of Exchange Rate mcq questions that explore various aspects of Foreign Exchange Market and Management of Exchange Rate problems. Each MCQ is crafted to challenge your understanding of Foreign Exchange Market and Management of Exchange Rate principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 89 Management Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Foreign Exchange Market and Management of Exchange Rate MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

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Foreign Exchange Market and Management of Exchange Rate MCQs | Page 7 of 9

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Q61.
What organization has devised codes and symbols for currencies to be used in international bank transactions?
Discuss
Answer: (c).International Standard Organisation (ISO) Explanation:The International Standard Organisation (ISO) has devised codes and symbols for currencies to be used in international bank transactions.
Q62.
When did the modern foreign exchange market start to develop significantly?
Discuss
Answer: (c).1970s Explanation:The modern foreign exchange market started during the 1970s when countries gradually switched to floating exchange rates from the earlier fixed exchange rate regime as per the Bretton Woods system.
Q63.
Who are the main participants in the foreign exchange market?
Discuss
Answer: (b).Larger international banks Explanation:The main participants in the foreign exchange market are larger international banks.
Q64.
What is the foreign exchange market sometimes called due to the active involvement of banks in trading?
Discuss
Answer: (d).Interbank market Explanation:The foreign exchange market is sometimes called the "interbank market" due to the active involvement of banks in trading.
Q65.
How does the foreign exchange market support international trade and investment?
Discuss
Answer: (b).By enabling currency conversion Explanation:The foreign exchange market supports international trade and investment by enabling currency conversion. It allows traders to import and export goods using different currencies.
Q66.
What determines the relative values of different currencies in the foreign exchange market?
Discuss
Answer: (d).Supply and demand dynamics Explanation:The foreign exchange market determines the relative values of different currencies based on supply and demand dynamics.
Q67.
What is the status of the Global Foreign Exchange Market Turnover according to the Bank for International Settlements (BIS) in April 2013?
Discuss
Answer: (c).$5.3 trillion per day Explanation:According to the Bank for International Settlements (BIS), trading in foreign exchange markets averaged $5.3 trillion per day in April 2013.
Discuss
Answer: (b).Electronic Broking Services (EBS) and Reuters 3000 Xtra Explanation:The two main interbank FX trading platforms are Electronic Broking Services (EBS) and Reuters 3000 Xtra.
Q69.
What instrument was the most actively traded in the foreign exchange market in April 2013, according to the BIS?
Discuss
Answer: (c).FX swaps Explanation:According to the BIS, FX swaps were the most actively traded instruments in the foreign exchange market in April 2013, at $2.2 trillion per day.
Q70.
How much did the trading in foreign exchange markets average per day in April 2013, according to the BIS?
Discuss
Answer: (c).$5.3 trillion Explanation:Trading in foreign exchange markets averaged $5.3 trillion per day in April 2013, according to the BIS.
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