Question : Which of the following is an example of a non-convertible currency?
Option 1: US dollar
Option 2: Euro
Option 3: Swiss franc
Option 4: Chinese yuan
Correct Answer: Chinese yuan
Solution : The correct answer is d) Chinese yuan
The Chinese yuan is an example of a non-convertible currency. A non-convertible currency refers to a currency that is not freely traded or exchanged on the international foreign exchange market. It means that there are restrictions or limitations on the convertibility of the currency into other currencies or its use in international transactions.
While the US dollar (a), Euro (b), and Swiss franc (c) are freely convertible currencies, widely accepted and traded in international markets, the Chinese yuan has historically had restrictions on its convertibility. However, it's important to note that currency policies and convertibility restrictions can change over time, and the status of a currency as convertible or non-convertible may be subject to updates and developments in currency regulations and international agreements.
Question : Which of the following is an example of a leading currency in international trade and finance?
Option 1: Indian rupee
Option 2: Chinese yuan
Option 4: US dollar
Question : Which of the following is not a major international reserve currency?
Option 3: Japanese yen
Option 4: Indian rupee
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 : Which of the following is an example of a managed exchange rate system?
Option 1: Currency pegging
Option 2: Currency hedging
Option 4: Currency arbitrage
Question : The value of US dollar $1 has come down from INR 85 to INR 84. It means that:
Option 1: Indian rupee has appreciated
Option 2: US dollar has depreciated
Option 3: Both (a) and (b)
Option 4: None
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