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

Question

Share Report Error

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

A. is unaffected

B. improves immediately

C. initially worsens before improving

D. never improves

Answer: Option C

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

Request complete Subject PDF

Discuss this Question (0)

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

Practice More Economy Set 1 Questions

Question #1

In the context of Indian planning, the first Five Year Plan was based on which model?

A. Solow model

B. Harrod-Domar model

C. Lewis model

D. Mahalanobis model

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
The First Five Year Plan (1951-56) was based on the Harrod-Domar model which emphasised the role of savings and investment in economic growth.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a feature of the Indian banking system?

A. Complete absence of NBFCs

B. Dual regulation of cooperative banks by RBI and state governments

C. Absence of priority sector lending norms

D. No role for foreign banks

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
Urban and rural cooperative banks in India are subject to dual regulation by the Reserve Bank of India and the respective state governments.

This question belongs to: Economy GK Economy Set 1

Question #3

NSDL and CDSL are depositories for:

A. government cash balances

B. dematerialized securities

C. foreign exchange reserves

D. bank deposits

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
NSDL and CDSL are the two depositories that hold securities in dematerialized form.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs