Which of the following best explains why the J-curve effect occurs?
The J-curve effect occurs because import and export contracts are fixed in the short-term causing delayed adjustments. J Curve refers to a change in the country’s balance of trade , often following a currency devaluation or depreciation. A weak currency means that imports will be costly, while it will be more profitable to export commodities. The imbalance leads to a fall in the current account, hence a smaller surplus or a bigger deficit. Immediately after the devaluation of a currency, there will be a lag in changing the consumption of imports. The demand for expensive imports and the demand for cheaper exports will be unchanged in the short run, as consumers look for cheaper alternatives.
‘SWAYAM’, an initiative of the Government of India, aims at
The D-SIBs banks are classified into _______ buckets.
NITI Aayog has released the MPI India index in November, Who releases the MPI report at global level ?
Which of the following statements best describes/ describe the term ‘Core Banking Solutions’?
1. It is a networking of a bank’s branches ...
Which of the following is not member of Asian Clearing Union (ACU)?
YUVIKA Programme will impart basic knowledge on space technology, space science, and space applications, while preference will be given to rural areas. ...
Atal Innovation Mission (AIM), NITI Aayog is Government of India’s flagship initiative to promote a culture of innovation and entrepreneurship in the ...
An online service for the verification of identity and submission of life certificates for pensioners of the state government being launched by the stat...
Which of the following does not grant any tax rebate?
When the RBI wants to inject liquidity into economy, it may adopt the following :
(1) Buy the government securities from the banks.
(2) En...