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

The term 'Soft Currency' refers to a currency that:
A. Is only the US dollar
B. Is backed only by gold
C. Is widely accepted internationally and remains relatively stable
D. Is not widely accepted in international transactions and may be subject to instability or limited convertibility
Answer: Option D
Solution (By JKSSB Mock Tests)
A soft currency is one that is less widely used in international trade and finance and may experience greater volatility or convertibility restrictions compared with hard currencies.

Discuss this Question (0)

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

Practice More Economy Set 1 Questions

Question #1
The 'PM Formalization of Micro Food Processing Enterprises' scheme is associated with which sector?
A. IT services
B. Steel
C. Textiles
D. Food processing

Correct Answer: Option D


Explanation:
PM FME scheme supports micro food processing enterprises.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a characteristic of the 'Global Value Chains' phenomenon?
A. All production occurs within a single country
B. Trade is limited to primary commodities
C. Only final goods are traded
D. Production processes are fragmented across countries, with intermediate goods crossing borders multiple times

Correct Answer: Option D


Explanation:
Global value chains describe the international fragmentation of production in which different stages of the production process are located in different countries and intermediate inputs are traded intensively.

This question belongs to: Economy GK Economy Set 1
Question #3
The long-run average cost curve is often called the:
A. indifference curve
B. planning curve or envelope curve
C. marginal cost curve
D. demand curve

Correct Answer: Option B


Explanation:
The long-run average cost curve is also called the planning curve or envelope curve.

This question belongs to: Economy GK Economy Set 1