Currency depreciation generally makes imports: MCQ with Answer and Explanation

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Currency depreciation generally makes imports:

A. subsidized

B. cheaper

C. more expensive in domestic currency

D. unchanged

Answer: Option C

Solution (By JKSSB Mock Tests)

Depreciation makes foreign goods more expensive in domestic currency, reducing import demand.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'Goods and Services Tax' on toll charges is:

A. exempt

B. 18%

C. 5%

D. 0%

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Correct Answer: Option A

Explanation:
Toll charges are exempt from GST.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Integrated Goods and Services Tax' applies to:

A. intra-state supplies

B. exports only

C. imports only

D. inter-state supplies

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Correct Answer: Option D

Explanation:
IGST applies to inter-state supplies and imports.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'International Bank for Reconstruction and Development' mainly provides:

A. military aid

B. grants only

C. short-term balance of payments support

D. loans to middle-income and creditworthy low-income countries

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Correct Answer: Option D

Explanation:
IBRD provides loans to middle-income and creditworthy low-income countries.

This question belongs to: Economy GK Economy Set 1

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