Which of the following would most likely cause the rupee to appreciate? MCQ with Answer and Explanation

Question

Share Report Error

Which of the following would most likely cause the rupee to appreciate?

A. Large capital inflows into India

B. Lower foreign investment

C. Increase in imports

D. Higher domestic inflation

Answer: Option A

Solution (By JKSSB Mock Tests)

Large capital inflows increase demand for rupee, causing appreciation.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

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

Practice More Economy Set 1 Questions

Question #1

The concept of 'Original Sin' in international finance refers to:

A. The sin of high fiscal deficits

B. The original accumulation of capital

C. Only the problem of domestic debt

D. The inability of many emerging-market countries to borrow abroad in their own currency

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option D

Explanation:
Original sin describes the situation in which most countries cannot borrow abroad in their own currency, forcing them to denominate external debt in foreign currency and exposing them to currency mismatches.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on cable TV services is:

A. 5%

B. 12%

C. 18%

D. 28%

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
Cable TV services attract 18% GST.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'veblen effect' is associated with:

A. inferior goods

B. perfect competition

C. homogeneous goods

D. conspicuous consumption where higher prices increase demand

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option D

Explanation:
Veblen effect occurs when higher prices increase the prestige of a good and therefore its demand.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs