In the context of digital finance, 'Central Bank Digital Currency' (CBDC) refers to:
A. Only privately issued cryptocurrencies
B. A digital form of central-bank money that is a direct liability of the central bank
C. Only commercial-bank deposits
D. Only physical cash
Answer: Option B
Solution (By JKSSB Mock Tests)
A central-bank digital currency is a digital payment instrument denominated in the national unit of account that is a direct liability of the central bank, distinct from both physical cash and commercial-bank deposits.
Explanation:
The cost of production influences the supply side. Price elasticity of demand depends on substitutes, nature of the good, proportion of income spent, time and habits.
Explanation:
Under a pure flexible (floating) exchange rate system, the value of the currency is determined by the interaction of demand and supply in the foreign exchange market.
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