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

Under a floating exchange rate system, a fall in the external value of a currency due to market forces is called:
A. revaluation
B. devaluation
C. depreciation
D. appreciation
Answer: Option C
Solution (By JKSSB Mock Tests)
A market-driven fall in the external value of a currency is called depreciation.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is a feature of a socialist economy?
A. Market determination of prices
B. Private ownership of means of production
C. Collective ownership of means of production
D. Profit maximisation as the sole motive

Correct Answer: Option C


Explanation:
In a socialist economy, the means of production are owned collectively or by the state, and economic decisions are largely centralised.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a major source of agricultural credit in India?
A. Commercial banks, cooperative banks and Regional Rural Banks
B. Stock exchanges
C. Mutual funds
D. Foreign institutional investors only

Correct Answer: Option A


Explanation:
Institutional agricultural credit in India is primarily provided by commercial banks, cooperative banks and Regional Rural Banks, with refinancing support from NABARD.

This question belongs to: Economy GK Economy Set 1
Question #3
The term 'Disguised Unemployment' implies that:
A. Workers are employed in high-productivity jobs
B. Unemployment is due to seasonal factors only
C. Workers are unemployed and actively seeking jobs
D. More people are engaged in a task than required, with marginal productivity close to zero

Correct Answer: Option D


Explanation:
Disguised unemployment exists when the removal of some workers does not reduce total output, typically found in agriculture in developing countries.

This question belongs to: Economy GK Economy Set 1