Question
The economy of Country Z is in a recession, with
declining GDP, rising unemployment, and low consumer and business confidence. The government is considering implementing expansionary fiscal policies to stimulate the economy. Which of the following is NOT a typical characteristic of a recession?Solution
Recessions are typically characterized by declining GDP, rising unemployment, low confidence, and reduced investment. Inflation tends to decrease or stabilize during recessions due to lower demand.
A company imports machinery payable in USD after 6 months. If the liability remains unpaid at year-end and the exchange rate has increased, how should t...
If USD/INR = 83.00 and GBP/USD = 1.25, what is the GBP/INR cross rate?
The 'Tom Next' swap in forex markets refers to:
In the forex market, the 'bid rate' refers to:
If the direct quote in India is USD/INR = 83.50, what is the indirect quote?
Beta Ltd., an Indian company, operates a 100% subsidiary in the UAE. The subsidiary manufactures and sells products only in the Gulf region, incurs cost...
A firm in India has to pay €5 million in 3 months. They expect the rupee to depreciate against the euro. Which of the following hedging tools will bes...
An Indian exporter receives a payment of USD 50,000 when the exchange rate is ₹83/USD. At the year-end, the rate drops to ₹80/USD and the amount is ...
The exchange rate system where the value of a currency is determined by market forces is called a:
The exchange rate system where the value of a currency is pegged to another major currency or basket of currencies is called:
