The 'International Fisher Effect' relates exchange rate changes to: MCQ with Answer and Explanation

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The 'International Fisher Effect' relates exchange rate changes to:

A. reserve levels

B. interest rate differentials

C. inflation differentials

D. trade balances

Answer: Option B

Solution (By JKSSB Mock Tests)

The International Fisher Effect suggests currencies with higher nominal interest rates will depreciate due to inflation.

This question belongs to: Economy GK Economy Set 1

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Question #1

The National Development Council in India is headed by:

A. President

B. Prime Minister

C. Home Minister

D. Finance Minister

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Correct Answer: Option B

Explanation:
The National Development Council is headed by the Prime Minister.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' rate on most services is:

A. 28%

B. 0%

C. 18%

D. 5%

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Correct Answer: Option C

Explanation:
Most services attract 18% GST.

This question belongs to: Economy GK Economy Set 1

Question #3

The Insolvency and Bankruptcy Code was enacted in which year?

A. 2015

B. 2016

C. 2019

D. 2013

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Correct Answer: Option B

Explanation:
The Insolvency and Bankruptcy Code was enacted in 2016.

This question belongs to: Economy GK Economy Set 1

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