The J-curve effect suggests that after a currency depreciation, the trade balance: MCQ with Answer and Explanation

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The J-curve effect suggests that after a currency depreciation, the trade balance:

A. is unaffected

B. never improves

C. improves immediately

D. initially worsens before improving

Answer: Option D

Solution (By JKSSB Mock Tests)

The J-curve effect shows that trade balance may worsen initially after depreciation before improving.

This question belongs to: Economy GK Economy Set 1

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Question #1

Which of the following is a characteristic of oligopoly?

A. Large number of independent sellers

B. Homogeneous product with free entry

C. Interdependence among firms

D. Perfect information and no barriers

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Correct Answer: Option C

Explanation:
Oligopoly is characterised by a few firms that are interdependent in their decision-making, as the actions of one firm affect the others.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Rashtriya Uchchatar Shiksha Abhiyan' is related to:

A. primary education

B. skill development

C. adult literacy

D. higher education

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Correct Answer: Option D

Explanation:
RUSA is a centrally sponsored scheme for higher education.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Bombay Stock Exchange' is the oldest stock exchange in Asia and was established in:

A. 1947

B. 1875

C. 1850

D. 1900

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Correct Answer: Option B

Explanation:
BSE was established in 1875.

This question belongs to: Economy GK Economy Set 1

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