PPSCFPSCNTSPakistan govt jobs
- Subject
- Foreign Exchangeeconomics-mcqs › foreign-exchange
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
What is the typical impact of a fiscal expansion in the UK on the value of the pound sterling?
Multiple choice question for Foreign Exchange. Select an option, then review the explanation below.
Explanation
A fiscal expansion in the UK usually leads to an appreciation of the pound sterling. This occurs because increased government spending or tax cuts can stimulate economic growth, attracting foreign investment and increasing demand for the currency. Therefore, option C is correct.
More Foreign Exchange MCQs
Practice related questions from the same subject.
- 1.In a floating exchange rate system, what is the typical trend observed regarding currency values?
- 2.What term describes the increase in the value of one currency compared to another?
- 3.What do we call exchange rates that fluctuate based solely on market supply and demand without government intervention?
- 4.What type of exchange rate system was established by the agreements made at the 1944 Bretton Woods conference?
- 5.What term describes the value of one nation's currency expressed in the currency of another country?