UGC NET Foreign exchange Previous Year Questions
JRFSmart holds 25 previous-year questions on Foreign exchange from UGC NET Commerce (Paper 2), filed under Unit 1: Business Environment and International Business, drawn from 17 of the 22 exam papers in the bank (2018–2025). Each question can be practised with a full explanation and shows how often NTA has returned to the same idea.
What is asked in Foreign exchange
The questions in this topic fall under these subtopics, ordered by how many previous-year questions each has.
| Subtopic | Questions |
|---|---|
| Nostro, vostro, bid and offer | 1 |
| Central bank intervention | 1 |
| Forex swap | 1 |
| Law of one price | 1 |
| Spot and forward contracts | 1 |
| Natural hedge | 1 |
| Fisher effect | 1 |
| Leading and lagging | 1 |
| Translation exposure | 1 |
| Methods of translating assets and liabilities | 1 |
| Causes of rupee depreciation | 1 |
| Types of exchange-rate exposure | 1 |
NTA repeat analysis
Foreign exchange appears in 17 of 22 papers (77%), which JRFSmart rates as high frequency.
2 questions in this topic have been verified as repeated in more than one paper.
Sample previous-year questions
Why do Central banks intervene to affect exchange rates? A. To influence domestic production B. To influence trade flows C. To influence domestic interest rates D. To inject liquidity in domestic markets E. To smoothen fluctuations in exchange rates. Choose…
A spot sale of a currency combined with a forward repurchase of the same currency is called which one of the following?
Match the LIST-I with LIST-II: LIST-I Term LIST-II Explanation A. Nostro Account I. Account held by a foreign bank with a local bank B. Vostro Account II. An Indian Bank's Swiss Franc A/C with a bank in Switzerland C. Bid III. Price at which the dealer is…
Match the LIST-I with LIST-II LIST I | LIST II A. Exchange Rate | I. It refers to the price of one unit of foreign currency in terms of some units of home currency B. Forward market | II. It is the process of making risk less profits by exploiting price…
Arrange the following exchange rate arrangements of international monetary system in chronological order (Old to New) A. Gold Standard B. Commodity Specie Standard C. Fixed parity System D. Floating exchange Rate Choose the correct answer from the options…
Which one of the followings is not an external technique of Foreign Exchange Risk Management ?
Which of the following comes under the significant meaning of foreign exchange? A. It is used to denote the rate at which different monetary units are exchanged. B. It is a process through which international payments are liquidated by different countries…
Given below are two statements: Statement I: Translation exposure refers to the exchange gain or loss occurring from the difference in the exchange rate at the beginning and the end of the accounting period. Statement II: Transaction exposure refers to the…
Showing 8 of 25 questions, without answers. Practise the full set with options, the official answer and JRFSmart's explanations.
Practise Foreign exchange
All 25 questions, one topic, with explanations and repeat data. One topic in every unit is free.
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