General Awareness · Banking Financial Awareness

Currencies and Exchange Rates

1,506 Questions

Knowledge of global currencies and exchange rates is vital for general awareness sections in banking and civil service exams. Topics include identifying the official currencies of various countries and understanding digital currency types. Use this collection to quickly memorize international currency symbols.

Country currency identificationDigital currency typesCurrency exchange tipsGlobal currency symbols

Currencies and Exchange Rates Questions

Multiple choice

Legal tender for money includes

  1. current currency notes and coins.

  2. old currency notes and coins.

  3. old and new currency notes and coins.

  4. all of these.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Only the currency currently in circulation can be taken as legal tender.

Multiple choice

Name the currency of Austria.

  1. Euro

  2. Dollar

  3. Lira

  4. Taka
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Austria adopted the Euro as its official currency on January 1, 1999, replacing the Austrian Schilling. The other options are currencies of different countries.

Multiple choice

The currency of Slovenia is

  1. Lira

  2. Franc

  3. Tolar
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Tolar was the currency of Slovenia from 1991 until 2007, when it was replaced by the Euro. Lira and Franc were currencies of other European nations.

Multiple choice

What is hard currency?

  1. Indian currency

  2. American currency

  3. English currency

  4. International currency
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Hard currency refers to currency that is widely accepted internationally as a form of payment for goods and services, typically issued by a politically and economically stable country.

Multiple choice

Name the Currency of United Arab Emirates?

  1. Dirham

  2. Rupee

  3. Won

  4. Tenge
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The official currency of the United Arab Emirates is the UAE Dirham. The Rupee is used in India, Won in Korea, and Tenge in Kazakhstan.

Multiple choice

Special Drawing Rights (SDR) which is a currency of International Monetary Fund is

  1. Paper currency

  2. Gold currency

  3. Silver currency

  4. Special Metal currency

  5. Book keeping entry only
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Special Drawing Rights (SDR) are an international reserve asset created by the IMF. They are not physical currency but rather a potential claim on the freely usable currencies of IMF members, functioning as a bookkeeping entry.

Multiple choice

Many times we read in newspapers that the Rupee is appreciating. When we consider the rupee-dollar exchange rate in the light of Purchasing Power Parity (PPP) we think that the exchange rate of the two currencies should be�

  1. Equal to the ratio of price levels in the two countries

  2. Not be equal to the ratio of price levels in the two countries

  3. Decided on the basis of the value of the third major currency i.e. Euro or Yen

  4. Necessarily be different for both the currencies as the economies of both of them are driven on two different sets of variables and it has no relation with PPP

  5. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Purchasing Power Parity (PPP) theory states that the exchange rate between two currencies should be equal to the ratio of the price levels of the two countries, effectively equalizing the purchasing power of the currencies.