Name: - ________________ Uni.

Roll No: ________________

______________________________________________________________________________

GOVT. COLLEGE UNIVERSITY, FAISALABAD

Discipline: BS-Economics (5th) Credit Hours: 3(3-0)
Course Title: International Finance Course Code: ECO-506
Time Allowed: 20 Minutes Maximum Marks: 14
Final-Term Fall-2017

Objective

1. Each question has four possible answers. Select most appropriate one. (14)

1- WTO was formed in:

(a) 1944 (b) 1985
(c) 1995 (d) 2005
2- Migration of highly skilled and trained labor force to other nations is regarded as:
(a) Transfer problem (b) Brain drain
(c) Transfer pricing (d) All of these
3- A country’s transactions with the rest of the world are recorded in:
(a) Income statement (b) Balance of payment
(c) Balance sheet (d) Balance of trade
4- Migration of workers from low paying nations to high paying nation tend to decrease:
(a) Capital income (b) Productivity of labor
(c) Wage disparities (d) Wage income
5- Which of the following is expenditure switching policy?
(a) Monetary policy (b) Fiscal policy
(c) Devaluation (d) None of these
6- The most widely traded currency in the foreign exchange market is:
(a) Euro (b) US dollar
(c) British Pound (d) Chinese Yuan
7- A depreciation of rupee will have greater effect on imports if demand for imports is:
(a) Elastic (b) Inelastic
(c) Constant (d) Unitary elastic
8- The exchange rate is kept same across geographically separate markets by:
(a) Hedging (b) Intervention
(c) Arbitrage (d) Speculation
9- Under fixed exchange rate system, which policy is ineffective when capital flows are highly
elastic?
(a) Fiscal policy (b) Monetary policy
(c) Trade policy (d) All of these
10- Foreign exchange reserves are not required under the system:
(a) Managed floating (b) Flexible
(c) Fixed (d) Dual exchange rate
11- A leakage out of the economy is except:
(a) Saving (b) Imports
(c) Exports (d) Taxes
12- According to J-curve effect, a depreciation of domestic currency tends to increase:
(a) Trade surplus in the short run (b) Trade surplus in the long run
(c) Trade deficit in the short run (d) Trade deficit in the long run
13- When a country devalues its currency, it is expected that trade deficit of nation will:
(a) Increase (b) Decrease
(c) Remain same (d) None of these
14- A nation usually needs as many policy instruments as the number of independent objectives:
(a) James Meade (b) Mundell
(c) Tinbergen (d) Swan

________Paper C_______
 Name: - ________________ Uni. Roll No: ________________
______________________________________________________________________________

GOVT. COLLEGE UNIVERSITY, FAISALABAD

Discipline: BS-Economics (5th) Credit Hours: 3(3-0)
Course Title: International Finance Course Code: ECO-506
Time Allowed: 100 Minutes Maximum Marks: 22
Final-Term Fall-2017

Subjective

2. Explain monetary approach to balance of payment under fixed exchange rate

system. (07)
3. Critically discuss policy mix model for achieving internal and external balance.
(08)
4. What is difference between Ordinary drawing rights and Special drawing rights?
Explain Special Facilities of Drawing provided by IMF. (07)

________Paper C_______

GOVT. COLLEGE UNIVERSITY, FAISALABAD

Discipline: BS-Economics (5th) Credit Hours: 3(3-0)
Course Title: International Finance Course Code: ECO-506
Time Allowed: 100 Minutes Maximum Marks: 22
Final-Term Fall-2017

Subjective

2. Explain monetary approach to balance of payment under fixed exchange rate

system. (07)
3. Critically discuss policy mix model for achieving internal and external balance.
(08)
4. What is difference between Ordinary drawing rights and Special drawing rights?
Explain Special Facilities of Drawing provided by IMF. (07)

________Paper C_______