Tag: international experience of exchange rate systems

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

Full form of SDRs:

  1. Suitable Drawing Rights

  2. Special Drawing Rights

  3. Special Derivation Rights

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

Special drawing rights. Special drawing rights (abbreviated SDR, ISO 4217 currency code XDR (numeric: 960)) are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF).

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

Which conference had given birth to International Monetary Fund?

  1. Uruguay Round Conference

  2. Round Table Conference

  3. Bretton Woods Conference

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

The Bretton Woods conference was held in washington, DC in 1944. It was the period after the great depression and most economies in Europe were failing thus the IMF was set up as a bank where member states could draw from to maintain economic activity and employment through periodic crises.

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

Quantitative restrictions mean _________.

  1. a restriction by Government on quantity of export or imports of goods from or to a country

  2. a restriction by Government on quantity of production of goods by a country.

  3. a restriction by Government on quantity of sale of goods by a manufacturer

  4. a restriction by Government on quantity of quantity of raw material consumed.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Quantitative restrictions refer to government-imposed limits on the quantity of specific goods that can be imported or exported during a certain period.

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.