22 Views

Question : Which of the following is not a factor that affects the exchange rate?

Option 1: Interest rates

Option 2: Inflation rates

Option 3: Government spending

Option 4: Political stability


Team Careers360 11th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

Correct Answer: Government spending


Solution : The correct answer is (c) Government spending

Government spending is not a direct factor that affects the exchange rate. While government spending can have indirect effects on the economy and, in turn, influence factors that affect the exchange rate, it is not a direct determinant of the exchange rate.

Related Questions

CLAT Current Affairs with GK ...
Apply
Stay updated with current affairs & check your preparation with the CLAT General Knowledge Mock Tests Ebook
CLAT English Language Mock Tests
Apply
Free Ebook - CLAT 2025 English Language questions with detailed solutions
ICFAI Business School-IBSAT 2024
Apply
9 IBS Campuses | Scholarships Worth Rs 10 CR
CLAT Legal Reasoning Mock Tests
Apply
Free Ebook - CLAT 2025 legal reasoning questions with detailed solutions
GIBS Business School Bangalor...
Apply
100% Placements with 220+ Companies
Great Lakes PGPM & PGDM 2025
Apply
Admissions Open | Globally Recognized by AACSB (US) & AMBA (UK) | 17.3 LPA Avg. CTC for PGPM 2024
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books