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

Token currency was made of

  1. Cheap metals

  2. Gold

  3. Silver

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

Muhammad bin Tughlaq introduced token currency made of cheap metals, like brass or copper, to replace gold and silver coins during a period of economic strain.

Multiple choice

KRONA is the currency of

  1. Sweden

  2. Philippines

  3. Germany

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

The Krona is the official currency of Sweden.

Multiple choice international experience of exchange rate systems open economy macroeconomics international economics economics

The Bretton Woods exchange rate system was a three-tier system of currency convertibility. 

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Bretton Woods system was a system of fixed exchange rates where currencies were pegged to the US dollar, which in turn was convertible to gold. It was not a three-tier system of convertibility.

Multiple choice international experience of exchange rate systems open economy macroeconomics international economics economics

The exchange rate system established under the Smithsonian agreement lasted for only 16 months.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Smithsonian Agreement was signed in December 1971 and effectively collapsed by early 1973 when the US dollar was devalued again and major currencies began to float, lasting roughly 14 to 15 months. The statement is generally considered false as it lasted slightly longer than 16 months or is at least a point of historical debate, but in most textbooks, the 'False' answer is preferred.

Multiple choice international experience of exchange rate systems open economy macroeconomics international economics economics

_____________ established an exchange rate system in 1971.

  1. Bretton woods conference

  2. Smithsonian agreement

  3. Triffin paradox

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Smithsonian Agreement was reached in December 1971 to attempt to save the fixed exchange rate system after the collapse of the Bretton Woods convertibility.

Multiple choice international experience of exchange rate systems open economy macroeconomics international economics economics

International reserves include _______. 

  1. government holding of gold

  2. balance in International Monetary Fund

  3. foreign currency reserves

  4. all the three
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

International reserves include gold reserves, forex reserves and a balance held with the IMF that he country can draw from with times off stress. All three help the country maintain its position on the international market and manage its balance of payment account, by influencing its exchange rate.