The 'Impossible Trinity' in international economics is also called: MCQ with Answer and Explanation

The 'Impossible Trinity' in international economics is also called:
A. the development trilemma
B. the monetary policy trilemma
C. the fiscal trilemma
D. the trade trilemma
Answer: Option B
Solution (By JKSSB Mock Tests)
The Impossible Trinity is also known as the monetary policy trilemma.

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1
The concept of 'Adverse Selection' in insurance markets leads to:
A. Only moral hazard problems
B. No effect on the pool of insured
C. Higher-risk individuals being more likely to purchase insurance
D. Lower-risk individuals being more likely to purchase insurance

Correct Answer: Option C


Explanation:
Because high-risk individuals have a greater incentive to buy insurance at any given premium, the insured pool tends to be riskier than the population average, driving up premiums and potentially causing market unraveling.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a qualitative credit control measure?
A. Statutory Liquidity Ratio
B. Bank Rate
C. Margin requirements
D. Cash Reserve Ratio

Correct Answer: Option C


Explanation:
Margin requirements (prescribing the difference between loan amount and value of security) is a selective/qualitative credit control measure used by RBI.

This question belongs to: Economy GK Economy Set 1
Question #3
In the context of international climate finance, the 'Loss and Damage' agenda refers to:
A. Only mitigation finance
B. Support for developing countries facing irreversible impacts of climate change that cannot be adapted to
C. Only private insurance markets
D. Only adaptation finance within national borders

Correct Answer: Option B


Explanation:
Loss and damage refers to the adverse effects of climate change that cannot be avoided through mitigation or adaptation; the agenda seeks financial and technical support for particularly vulnerable countries.

This question belongs to: Economy GK Economy Set 1