Inflation Rates MCQs Test Online PDF Download

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MCQ on Inflation RatesQuiz PDF Download

MCQ: Theory according to which difference between expected appreciation and foreign interest must be equal to domestic interest rate, is called

  1. interest rate parity theorem
  2. appreciation parity theorem
  3. domestic parity theorem
  4. foreign interest parity theorem

A

MCQ: Rule which states that similar set of goods and services produced in various countries should have equal price is classified as

  1. law of similar mortgage rate
  2. law of one type manufacturing
  3. law of similar labor rules
  4. law of one price

D

MCQ: In equilibrium position, spread between foreign and domestic rate of interest must be equal to spread of

  1. domestic rates
  2. forward and spot exchange rates
  3. forward rate
  4. spot rates

B

MCQ: Theory which considers change in exchange rate with fluctuations in inflation rates is classified as

  1. liquidated power parity
  2. purchasing power parity
  3. selling power parity
  4. volatile power parity

B

MCQ: Inflation rate in United States is added into real rate of interest to calculate

  1. quoted interest rate in United States
  2. nominal interest rate in United States
  3. interest rate in United States
  4. discount rate of country

C