The concept of 'Terms of Trade' is defined as: MCQ with Answer and Explanation

The concept of 'Terms of Trade' is defined as:
A. The value of capital inflows
B. The ratio of export prices to import prices
C. The volume of exports only
D. The ratio of import prices to export prices
Answer: Option B
Solution (By JKSSB Mock Tests)
Terms of trade measure the relative prices of a country's exports to its imports, usually expressed as an index. An improvement means more imports can be obtained per unit of exports.

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Practice More Economy Set 1 Questions

Question #1
The 'accelerator coefficient' is the ratio of:
A. investment to consumption
B. investment to output
C. change in investment to change in output
D. saving to investment

Correct Answer: Option C


Explanation:
The accelerator is the ratio of induced investment to a change in output.

This question belongs to: Economy GK Economy Set 1
Question #2
The term 'Financial Inclusion' primarily aims at:
A. Providing banking services only to high-income groups
B. Ensuring access to financial services for all sections of society at affordable cost
C. Restricting credit to priority sectors
D. Increasing interest rates for small borrowers

Correct Answer: Option B


Explanation:
Financial inclusion seeks to ensure that individuals and businesses, especially the underserved, have access to useful and affordable financial products and services.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'currency chests' in India are operated by:
A. treasury departments
B. banks on behalf of RBI
C. RBI only
D. post offices

Correct Answer: Option B


Explanation:
Currency chests are operated by selected banks on behalf of the RBI for currency storage and distribution.

This question belongs to: Economy GK Economy Set 1