Under a floating exchange rate system, a fall in the external value of a currency due to market forces is called: MCQ with Answer and Explanation

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Under a floating exchange rate system, a fall in the external value of a currency due to market forces is called:

A. depreciation

B. appreciation

C. devaluation

D. revaluation

Answer: Option A

Solution (By JKSSB Mock Tests)

A market-driven fall in the external value of a currency is called depreciation.

This question belongs to: Economy GK Economy Set 1

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Question #1

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The 'Multilateral Investment Guarantee Agency' is a member of the:

A. IMF

B. WTO

C. OECD

D. World Bank Group

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Correct Answer: Option D

Explanation:
MIGA is a member of the World Bank Group.

This question belongs to: Economy GK Economy Set 1

Question #2

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The 'injection' into the circular flow in a three-sector economy includes:

A. government expenditure and investment

B. saving

C. taxes

D. imports

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Correct Answer: Option A

Explanation:
In a three-sector economy, injections include investment and government expenditure.

This question belongs to: Economy GK Economy Set 1

Question #3

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The 'Goods and Services Tax' on digital advertising is:

A. 12%

B. 28%

C. 18%

D. 5%

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Correct Answer: Option C

Explanation:
Digital advertising services attract 18% GST.

This question belongs to: Economy GK Economy Set 1

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