The concept of 'Purchasing Power Parity' is used to:
A. Compare the relative value of currencies based on a basket of goods
B. Determine the interest rate only
C. Calculate the fiscal deficit
D. Measure unemployment
Answer: Option A
Solution (By JKSSB Mock Tests)
Purchasing Power Parity (PPP) is a theory and method that compares currencies by determining the amount needed to purchase the same basket of goods and services in different countries.
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