Currency appreciation generally makes exports: MCQ with Answer and Explanation

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Currency appreciation generally makes exports:

A. cheaper

B. more expensive in foreign currency

C. free from tariffs

D. unchanged

Answer: Option B

Solution (By JKSSB Mock Tests)

When a currency appreciates, domestic goods become more expensive for foreign buyers, reducing exports.

This question belongs to: Economy GK Economy Set 1

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Question #1

The concept of 'Multiplier' in Keynesian economics is larger when:

A. Marginal propensity to save is higher

B. Marginal propensity to consume is higher

C. Tax rate is higher

D. Marginal propensity to consume is lower

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Correct Answer: Option B

Explanation:
The investment multiplier = 1/(1−MPC). A higher marginal propensity to consume leads to a larger multiplier effect on income.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Digital rupee' is a central bank digital currency that has been launched by RBI in a pilot.

A. Only for banks

B. Only for foreign trade

C. True

D. False

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Correct Answer: Option C

Explanation:
RBI has launched pilot projects for the Digital Rupee, a central bank digital currency.

This question belongs to: Economy GK Economy Set 1

Question #3

In a Lorenz curve diagram, the diagonal line represents:

A. complete income inequality

B. economic growth

C. poverty line

D. perfect equality of income distribution

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Correct Answer: Option D

Explanation:
The diagonal line in the Lorenz curve diagram represents perfect income equality.

This question belongs to: Economy GK Economy Set 1

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