Question : The ____ exchange rate is the price of one unit of foreign currency in terms of domestic currency.
Option 1: artificial
Option 2: nominal
Option 3: fixed
Option 4: real
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Correct Answer: nominal
Solution : The correct option is nominal.
The amount of domestic currency needed to buy one unit of a specific foreign currency is known as the nominal exchange rate. It is the term used to describe a decrease in this variable. It enables us to express prices in a single currency, where NER is crucial for comparing goods and services produced in various nations.
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Question : Which of the following is the Gross Domestic Product (GDP) Deflator?
Option 1: The ratio of nominal to real GDP
Option 2: The ratio of nominal to real GNP
Option 3: The ratio of nominal to real CPI
Option 4: The ratio of real to nominal GNP
Question : At present, Indian is following
Option 1: Fixed exchange rate
Option 2: Floating exchange rate
Option 3: Pegged up an exchange rate
Option 4: Pegged down the exchange rate
Question : Fixed Foreign Exchange Rate can be changed by _____.
Option 1: RBI
Option 2: SEBI
Option 3: Ministry of Finance
Option 4: FIPB
Question : GDP deflator =
Option 1: (nominal GDP × Real GDP) × 100
Option 2: (nominal GDP + Real GDP) × 100
Option 3: (nominal GDP - Real GDP) × 100
Option 4: (nominal GDP / Real GDP) × 100
Question : Which of the following does not form a part of the foreign exchange reserve of India?
Option 1: Gold
Option 2: SDRs
Option 3: Foreign currency assests
Option 4: Foreign currency and securities held by the banks and corporate bodies
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