The term 'Soft Currency' refers to: MCQ with Answer and Explanation

The term 'Soft Currency' refers to:
A. A currency that is not widely accepted internationally and may be unstable
B. Only gold-backed currency
C. A currency that is widely accepted and stable
D. Only the US dollar
Answer: Option A
Solution (By JKSSB Mock Tests)
A soft currency is one that is not widely used in international transactions and may experience frequent fluctuations or limited convertibility, in contrast to hard currencies like the US dollar or euro.

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Practice More Economy Set 1 Questions

Question #1
The 'International Financial Services Centre' in India is located at:
A. Hyderabad
B. Bengaluru
C. Mumbai
D. GIFT City, Gandhinagar

Correct Answer: Option D


Explanation:
India's first IFSC is in GIFT City, Gandhinagar, Gujarat.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'circular flow of income' in a two-sector economy includes:
A. only firms
B. government and foreign sector
C. households and firms
D. only households

Correct Answer: Option C


Explanation:
A two-sector economy includes households and firms.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Trade Facilitation Agreement' of WTO entered into force in which year?
A. 2019
B. 2013
C. 2018
D. 2017

Correct Answer: Option D


Explanation:
The Trade Facilitation Agreement entered into force in 2017.

This question belongs to: Economy GK Economy Set 1