The exchange rate differential between the currencies of two countries is explained by:
Show Hint
- Fiscal deficit differential
- GDP growth rate differential
- Liquidity differential
- Interest-inflation rate differential
The Correct Option is D
Solution and Explanation
Step 1: Understand exchange rate determination.
- Major factors = interest rate, inflation differential, and purchasing power parity.
Step 2: Conclude.
- Option 4 (Interest-Inflation rate differential) explains exchange rate differences.
Top Questions on Macro-Economics
- Which of the following is not a part of the Circular flow of Income in a closed economy?
- CUET (PG) - 2025
- Commerce
- Macro-Economics
- Among the following theories of international trade, which one is the oldest?
- CUET (PG) - 2025
- Commerce
- Macro-Economics
- Which of the following records the flow of foreign exchange from all international transactions over a period of time?
- CUET (PG) - 2025
- Commerce
- Macro-Economics
- Which of the following statements are correct? (A). A proportional income tax is an automatic stabiliser.
(B). An increase in autonomous spending raises the equilibrium level of income.
(C). As the marginal propensity to consume gets larger, the lower the multiplier will be.
(D). A reduction in transfer payments lowers the output.- CUET (PG) - 2025
- Commerce
- Macro-Economics
- Which of the following represents the inverse relationship between the rate of unemployment and the rate of increase in money wages?
- CUET (PG) - 2025
- Commerce
- Macro-Economics
Questions Asked in CUET PG exam
Match List-I with List-II\[\begin{array}{|c|c|} \hline \textbf{Provision} & \textbf{Case Law} \\ \hline \text{(A) Strict Liability} & \text{(1) Ryland v. Fletcher} \\ \hline \text{(B) Absolute Liability} & \text{(II) M.C. Mehta v. Union of India} \\ \hline \text{(C) Negligence} & \text{(III) Nicholas v. Marsland} \\ \hline \text{(D) Act of God} & \text{(IV) MCD v. Subhagwanti} \\ \hline \end{array}\]
- CUET (PG) - 2025
- Law of Torts
Match List-I with List-II\[\begin{array}{|c|c|} \hline \textbf{List-1} & \textbf{List-II} \\ \hline \text{(A) Hadley v. Baxendale} & \text{(1) Undue Influence} \\ \hline \text{(B) Henkel v. Pape} & \text{(II) Coercion} \\ \hline \text{(C) Manu Singh v. Umadat Pandey} & \text{(III) Quantum of Damages} \\ \hline \text{(D) Chikkam Amiraju v. Seshamma} & \text{(IV) Mistake} \\ \hline \end{array}\]
- CUET (PG) - 2025
- Contract Law
Match List-I with List-II
\[\begin{array}{|c|c|} \hline \textbf{List-1} & \textbf{List-II} \\ \hline \text{(A) Complete Justice} & \text{(I) Article 137} \\ \hline \text{(B) Special Leave Petition} & \text{(II) Article 131} \\ \hline \text{(C) Review of the Judgments} & \text{(III) Article 142} \\ \hline \text{(D) Original Jurisdiction} & \text{(IV) Article 136} \\ \hline \end{array}\]
- CUET (PG) - 2025
- Judicial Process
Match List-I with List-II
- CUET (PG) - 2025
- Indian Constitution
Match List-I with List-II
\[\begin{array}{|c|c|} \hline \textbf{List-1} & \textbf{List-II} \\ \hline \text{(A) Ram Jawaya Kapur v. State of Punjab} & \text{(I) Separation of powers} \\ \hline \text{(B) Delhi Laws Act, 1912} & \text{(II) Delegated legislation} \\ \hline \text{(C) Maneka Gandhi v. Union of India} & \text{(III) Doctrine of proportionality} \\ \hline \text{(D) Om Kumar v. Union of India} & \text{(IV) Post decisional hearing} \\ \hline \end{array}\]
- CUET (PG) - 2025
- Administrative Law