The purchasing power parity exchange rate between two currencies is the rate that: MCQ with Answer and Explanation

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The purchasing power parity exchange rate between two currencies is the rate that:

A. equalizes trade balances

B. equalizes the prices of a basket of goods across countries

C. equalizes interest rates

D. maximizes exports

Answer: Option B

Solution (By JKSSB Mock Tests)

The PPP exchange rate equalizes the price of a common basket of goods across countries.

This question belongs to: Economy GK Economy Set 1

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The 'National Pension System' is open to citizens in the age group of:

A. 18-60 years

B. 18-50 years

C. 21-65 years

D. 18-70 years

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Correct Answer: Option D

Explanation:
NPS is open to citizens aged 18 to 70.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'National Anti-profiteering Authority' under GST was headed by a:

A. RBI Governor

B. Finance Minister

C. Supreme Court judge

D. Secretary-level officer

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Correct Answer: Option D

Explanation:
NAA was headed by a Secretary-level officer.

This question belongs to: Economy GK Economy Set 1

Question #3

The Phillips curve shows an inverse relationship between:

A. output and employment

B. inflation and unemployment

C. inflation and interest rates

D. money supply and price level

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Correct Answer: Option B

Explanation:
The Phillips curve suggests a short-run trade-off between inflation and unemployment.

This question belongs to: Economy GK Economy Set 1

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