SSC Economics Sample Paper NCERT Sample Paper-1

  • question_answer
    Consider the following:
    The price of any currency in international market is decided by the:
    1. World Bank
    2. Demand for goods/services provided by the country concerned.
    3. Stability of the government of the concerned country. Choose the correct one:

    A)  Only 1 and 2    

    B)  Only 2 and 3

    C)  Only 1 and 3    

    D)  All 1, 2 and 3

    Correct Answer: B

    Solution :

    [b] The market determines a floating exchange rate. In other words, a currency is worth whatever buyers are willing to pay for it. This is determined by supply and demand, which is in turn driven by foreign investment, import/export ratios, inflation, and a host of other economic factors.

You need to login to perform this action.
You will be redirected in 3 sec spinner