Question : ___________ is the medium of exchange in an economy.
Option 1: Currency
Option 2: Capital
Option 3: Commodity
Option 4: Credit

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Question : An increase in the nominal exchange rate indicates:
Option 1: Appreciation of the domestic currency.

Option 2: Depreciation of the domestic currency.

Option 3: No change in the value of the domestic currency.

Option 4: Inflation in the domestic economy.

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Answer 1

Correct Answer: Currency

Solution : The correct answer is (a) Currency

Currency refers to the system of money in a particular country or region, including both physical forms like banknotes and coins, as well as digital representations. It serves as a medium of exchange, a unit of account, and a store of value.

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Question : ___________ is the medium of exchange in an economy.Option 1: CurrencyOption 2: CapitalOption 3: CommodityOption 4: Credit

Related Questions

Question : An increase in the nominal exchange rate indicates:Option 1: Appreciation of the domestic currency. Option 2: Depreciation of the domestic currency. Option 3: No change in the value of the domestic currency. Option 4: Inflation in the domestic economy.

Question : Addition of the foreign exchange reserves is recorded on the ______ side of ___ account. Option 1: Credit, current Option 2: Credit, capital Option 3: Debit, current Option 4: Debit, capital

Question : Which of the following is an example of an exchange rate risk mitigation strategy?Option 1: Currency hedging Option 2: Currency pegging Option 3: Currency speculation Option 4: Currency manipulation

Question : A currency whose exchange rate is influenced by the government is a/anOption 1: unmanaged currencyOption 2: managed currencyOption 3: scarce currencyOption 4: surplus currency

Question : Withdrawl from the foreign exchange reserves is recorded on the ______ side of ___ account. Option 1: Credit, current Option 2: Credit, capital Option 3: Debit, current Option 4: Debit, capital

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Question : ___________ is the medium of exchange in an economy.
Option 1: Currency
Option 2: Capital
Option 3: Commodity
Option 4: Credit

Question : An increase in the nominal exchange rate indicates:
Option 1: Appreciation of the domestic currency.

Option 2: Depreciation of the domestic currency.

Option 3: No change in the value of the domestic currency.

Option 4: Inflation in the domestic economy.

Question : Addition of the foreign exchange reserves is recorded on the ____ side of _ account.

Option 1: Credit, current

Option 2: Credit, capital

Option 3: Debit, current

Option 4: Debit, capital

Question : Which of the following is an example of an exchange rate risk mitigation strategy?
Option 1: Currency hedging

Option 2: Currency pegging

Option 3: Currency speculation

Option 4: Currency manipulation

Question : A currency whose exchange rate is influenced by the government is a/an
Option 1: unmanaged currency
Option 2: managed currency
Option 3: scarce currency
Option 4: surplus currency

Question : Withdrawl from the foreign exchange reserves is recorded on the ____ side of _ account.

Option 1: Credit, current

Option 2: Credit, capital

Option 3: Debit, current

Option 4: Debit, capital