Devaluation of a currency refers to: MCQ with Answer and Explanation

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Devaluation of a currency refers to:

A. buying of foreign currency by the central bank

B. market-determined fall in the value of a currency

C. a rise in domestic interest rates

D. official lowering of the value of a currency under a fixed exchange rate system

Answer: Option D

Solution (By JKSSB Mock Tests)

Devaluation is the official lowering of a currency's value under a fixed exchange rate system.

This question belongs to: Economy GK Economy Set 1

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The expenditure on old age pension is classified as:

A. plan expenditure

B. developmental expenditure

C. capital expenditure

D. revenue expenditure

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Correct Answer: Option D

Explanation:
Old age pension is a recurring revenue expenditure that does not create assets.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on legal services is:

A. 12%

B. 18%

C. 5%

D. 0%

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Correct Answer: Option B

Explanation:
Legal services generally attract 18% GST, with some exemptions.

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Question #3

The 'Human Development Index' was introduced by:

A. World Bank

B. IMF

C. UNESCO

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Correct Answer: Option D

Explanation:
The Human Development Index was introduced by UNDP in 1990.

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