GK Test 45 (Static)

Devaluation involves a deliberate reduction in the currency's value by the government under a fixed exchange rate system. In floating systems, market forces determine value (appreciation/depreciation). Devaluation aims to boost exports and reduce trade deficits.

Spain used the Peseta before adopting the Euro, Russia uses the Rouble, Thailand uses the Baht, and Malaysia uses the Ringgit. The correct matching is A-2, B-1, C-3, D-4. These currencies are specific to their respective countries' economic systems.

National income does not include pensions of retired people because these are transfer payments, not payments for current goods and services production. Income from rent, self-employed income, and trading profits all represent current production income.

Per capita income at constant prices best reflects changes in standard of living because it adjusts for both population growth and inflation. Current prices include inflation effects. GNP and national income are aggregate measures, not per capita.

Indirect taxes are levied on goods and services rather than on individuals or entities directly. Customs duty is a tax on imported goods, making it indirect. Income tax, corporate tax, and capital gains tax are all direct taxes paid directly by the taxpayer.

Gilt-edged stocks (or gilts) are bonds issued by governments, particularly associated with the UK. They are called 'gilt-edged' because of their high reliability and minimal default risk, being backed by the government's creditworthiness.

Togo uses the West African CFA franc, not the pound. Sudan uses the Sudanese pound, Syria uses the Syrian pound, and Egypt uses the Egyptian pound. Togo is the correct answer.

Mexico uses the Mexican peso, while the other three countries use franc-based currencies. Burundi uses the Burundian franc, Chad uses the Central African CFA franc, and Congo uses the Central African CFA franc.

Debentures are fixed-interest securities issued by companies to raise capital. They represent long-term debt instruments where the issuer promises to pay a fixed rate of interest. They are not profit distributions like dividends.

A closed economy has no international trade - no imports or exports. All economic activity is contained within the country. It is self-sufficient with no external economic links.

Eco Mark is an Indian certification label given to products that are environmentally friendly throughout their lifecycle - from production to disposal. It indicates the product meets specific environmental standards and causes less environmental damage.

Marginal utility is the additional satisfaction gained from consuming one more unit of a commodity. It is the difference in total utility when consumption increases by one unit, not the average or total.

Economic prosperity is measured by real GNP (Gross National Product) at fixed prices, which removes inflation effects and shows actual growth in output. Current prices would be misleading as they include inflation. Real GNP reflects genuine increase in goods and services produced.

Economic growth is primarily measured in terms of national income (GDP/GNP). An increase in national income indicates expansion of the economy's productive capacity and output. Urban employment, rural development, and balance of payments are specific aspects, not comprehensive measures.

When capital stock is everlasting or perpetual, it does not wear out or lose value over time. Therefore, depreciation is zero because the asset maintains its value indefinitely without any consumption or obsolescence.

The Economic Survey of India is an annual document presented by the Ministry of Finance, Government of India. It provides detailed analysis of the economic development of the country and is presented just before the Union Budget.

Consumer equilibrium occurs when a consumer maximizes utility given their income constraint and prices. This means they can fulfill their needs optimally within their budget allocation, achieving maximum satisfaction.

During inflation, wages typically increase more slowly than prices due to sticky wage theory and contract rigidities. When wages lag behind rising prices, labor's share of national income decreases relative to other factors like capital and profits.

The Sensex (Sensitive Index) tracks 30 financially sound companies listed on the Bombay Stock Exchange (BSE). A rise indicates an overall increase in share prices of these representative companies, not all companies on the exchange.

The central bank (RBI in India) regulates currency and credit, maintains exchange value, and formulates monetary policy. Direct lending to the public at concessional rates is a commercial bank function, not a central bank function.

ECOSOC stands for Economic and Social Council, which is one of the six principal organs of the United Nations. It coordinates economic, social, and related work of UN specialized agencies.

The poverty line in India is traditionally determined by per capita calorie intake (minimum nutritional requirements). This method estimates the minimum income needed to purchase food providing essential calories for survival.

Singapore uses the Singapore dollar, Trinidad and Tobago uses the Trinidad and Tobago dollar, and Zimbabwe uses the Zimbabwean dollar. Kuwait uses the Kuwaiti dinar, not the dollar, as its currency unit.