The 'currency swap' between two central banks is: MCQ with Answer and Explanation

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The 'currency swap' between two central banks is:

A. import of goods

B. permanent exchange of currencies

C. purchase of gold

D. a loan of domestic currency against foreign currency with an agreement to reverse later

Answer: Option D

Solution (By JKSSB Mock Tests)

A currency swap is a temporary exchange of currencies between central banks to provide liquidity.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The term 'Base Effect' is related to the calculation of:

A. National income

B. Fiscal deficit

C. Balance of trade

D. Inflation rate

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Correct Answer: Option D

Explanation:
Base effect refers to the impact of the price level of the previous year (base) on the calculation of the inflation rate in the current year.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Securities and Exchange Board of India' was established in 1988 but became a statutory body in:

A. 1990

B. 2000

C. 1995

D. 1992

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Correct Answer: Option D

Explanation:
SEBI became a statutory body in 1992.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is NOT a function of the World Trade Organisation?

A. Providing long-term development finance

B. Providing a forum for trade negotiations

C. Settling trade disputes

D. Administering trade agreements

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Correct Answer: Option A

Explanation:
Long-term development finance is the function of the World Bank. The WTO deals with trade rules, negotiations and dispute settlement.

This question belongs to: Economy GK Economy Set 1

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