The value of the SDR is based on a basket of how many currencies? MCQ with Answer and Explanation

The value of the SDR is based on a basket of how many currencies?
A. 5
B. 4
C. 3
D. 6
Answer: Option A
Solution (By JKSSB Mock Tests)
The SDR basket consists of five currencies: US dollar, euro, Chinese yuan, Japanese yen and British pound.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is a characteristic of the 'Classical Dichotomy'?
A. Real and nominal variables are always interdependent
B. Money affects real output in the long run
C. Real and nominal variables are determined separately and money is neutral
D. Only fiscal policy is neutral

Correct Answer: Option C


Explanation:
The classical dichotomy is the proposition that real variables (output, employment, relative prices) are determined independently of nominal variables and that money is neutral in the long run.

This question belongs to: Economy GK Economy Set 1
Question #2
In a liquidity adjustment facility, the reverse repo rate is typically how much below the repo rate?
A. 2.00 percentage points
B. 1.00 percentage point
C. 0.25 percentage points
D. 0.50 percentage points

Correct Answer: Option D


Explanation:
The reverse repo rate is usually 0.50 percentage points below the repo rate, though the actual gap may vary.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a market structure based on the number of sellers?
A. Only monopsony
B. Only monopolistic competition as buyer-based
C. Only bilateral monopoly
D. Monopoly, duopoly, oligopoly and perfect competition

Correct Answer: Option D


Explanation:
Market structures classified by the number of sellers include monopoly (one), duopoly (two), oligopoly (few) and perfect competition (many).

This question belongs to: Economy GK Economy Set 1