The 'exchange rate pass-through' refers to the effect of exchange rate changes on: MCQ with Answer and Explanation

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The 'exchange rate pass-through' refers to the effect of exchange rate changes on:

A. domestic prices of imports and inflation

B. government spending

C. stock prices only

D. unemployment only

Answer: Option A

Solution (By JKSSB Mock Tests)

Exchange rate pass-through is the impact of exchange rate changes on domestic prices.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

A negative externality occurs when:

A. social benefit exceeds private benefit

B. private benefit equals social benefit

C. private cost exceeds social cost

D. social cost exceeds private cost

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Correct Answer: Option D

Explanation:
A negative externality arises when social cost exceeds private cost, e.g. pollution.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Wholesale Price Index' is used in India for:

A. pension calculation

B. income tax

C. wage revision

D. measurement of inflation at wholesale level

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Correct Answer: Option D

Explanation:
WPI measures inflation at the wholesale level.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Interim Budget' is presented when:

A. there is a financial emergency

B. elections are near or the government is in transition

C. the government has full term

D. there is a war

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Correct Answer: Option B

Explanation:
An interim budget is presented before elections or a transition period.

This question belongs to: Economy GK Economy Set 1

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