Question : Which of the following are the parts of structural reform measure of new economic policy?
Option 1: Controlling inflation by keeping the rising prices under control.
Option 2: Improving efficiency of the economy.
Option 3: Controlling weaknesses of the balance of payments by maintaining sufficient foreign exchange reserves.
Option 4: All of the above.
Correct Answer: Controlling weaknesses of the balance of payments by maintaining sufficient foreign exchange reserves.
Solution : Stabilisation measures involves
Structural reform measures involves-
Hence, Option C is correct.
Question : Which of the following are the parts of stabilization measure of new economic policy?
Option 3: Increasing international competitiveness by removing the rigidities in various segments of the Indian Economy.
Question : The real exchange rate is calculated by:
Option 1: Dividing the nominal exchange rate by the inflation rate.
Option 2: Multiplying the nominal exchange rate by the inflation rate.
Option 3: Adding the inflation rate to the nominal exchange rate.
Option 4: Subtracting the inflation rate from the nominal exchange rate.
Question : An increase in the nominal exchange rate can be caused by:
Option 1: Lower interest rates in the domestic economy.
Option 2: Higher inflation rates in the domestic economy.
Option 3: Lower inflation rates in the domestic economy.
Option 4: Government intervention in the foreign exchange market.
Question : In a managed exchange rate system, the central bank of a country may intervene to influence the exchange rate by buying or selling its currency in the foreign exchange market. This intervention is aimed at ________.
Option 1: maintaining price stability
Option 2: promoting economic growth
Option 3: controlling inflation
Option 4: managing trade imbalances
Question : Barter exchange is also known as
Option 1: C-C economy
Option 2: B-B economy
Option 3: D-D economy
Option 4: A-A economy
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