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

Currency of Japan is

  1. yen

  2. rand

  3. lira

  4. pound

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

The yen is the official currency of Japan. It is one of the most traded currencies in the global foreign exchange market.

Multiple choice

Which of the following is known as “ Paper Gold”?

  1. ADR

  2. GDR

  3. SDR

  4. EURO
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Special Drawing Rights (SDRs), issued by the International Monetary Fund (IMF), are often referred to as 'Paper Gold' because they serve as a supplementary international reserve asset.

Multiple choice

Riyal is the currency of

  1. Romania

  2. Saudi Arabia

  3. Japan

  4. Libya
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The riyal is the official currency of several countries, most notably Saudi Arabia.

Multiple choice

The currency used in China is

  1. Lira

  2. Yuan

  3. Ruble

  4. Yen
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The official currency of the People's Republic of China is the Renminbi, and its primary unit is the Yuan.

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

  1. be 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. be 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 suggests that in the absence of trade barriers, the exchange rate between two currencies should reflect the ratio of their respective price levels. This ensures that a unit of currency has the same purchasing power in both countries.

Multiple choice

As per the agreement between India and the other country, the Indian Rupee can be easily swapped with

  1. Tak

  2. Rial

  3. Kyat

  4. Yen

  5. Rubbel
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

The Indian Rupee had a currency swap agreement with the Russian Ruble, allowing for easier trade between the two countries without depending on US dollars. Tak is Bhutanese currency, Rial is Iranian currency, Kyat is Myanmar currency, and Yen is Japanese currency - none of these had the same swap arrangement with India.