The term 'Soft Currency' refers to a currency that:
A. Is not widely accepted in international transactions and may be subject to instability or limited convertibility
B. Is backed only by gold
C. Is widely accepted internationally and remains relatively stable
D. Is only the US dollar
Answer: Option A
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.
Explanation:
Crowding in occurs when government spending (especially on infrastructure) raises the productivity of private capital and stimulates additional private investment.
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