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Chapter 14 of 19
Important Questions

Foreign Exchange Rate

ICSE · Class 12 · Economics

Most important questions from Foreign Exchange Rate for ICSE Class 12 Economics board exam 2026. MCQs, short answer, and long answer questions with marks.

70 questions40 flashcards5 concepts

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70 Questions·
multiple choicemultiple correct

Sample Questions

1multiple choice
1 marks

What happens to the domestic currency under appreciation in a flexible exchange rate system?

Show answer

Its free market value rises relative to other currencies

Appreciation means a rise in the free market value of domestic currency relative to currencies of other countries.

2multiple choice
1 marks

What is devaluation?

Show answer

Government action to decrease the value of domestic currency under fixed exchange rates

Devaluation is an official government action that lowers the value of domestic currency under a fixed exchange rate system.

3multiple choice
1 marks

What is revaluation?

Show answer

Government action to appreciate the external value of its currency under fixed exchange rates

Revaluation is the official action by the government to increase the external value of its currency under fixed exchange rates.

4multiple choice
1 marks

Which terms are used when exchange rates are flexible?

Show answer

Depreciation and appreciation

Depreciation and appreciation are the terms used under flexible exchange rate systems.

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Frequently Asked Questions

What are the important topics in Foreign Exchange Rate for ICSE Class 12 Economics?
Foreign Exchange Rate covers several key topics that are frequently asked in ICSE Class 12 board exams. Focus on the core concepts listed on this page and practise related questions to build confidence.
How to score full marks in Foreign Exchange Rate — ICSE Class 12 Economics?
Understand the core concepts first, then work through the 70 practice questions available for this chapter. Revise formulas and definitions regularly, and use flashcards for quick recall before the exam.
How many important questions are there in Foreign Exchange Rate?
There are 70 practice questions available for Foreign Exchange Rate. These cover multiple question types including MCQs, short answer, and long answer questions.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

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