Which of the following statements is/are correct about the Nominal Effective Exchange Rate (NEER)?
1. NEER is a measure of the value of a currency against a weighted average of several foreign currencies.
2. An increase in NEER indicates an appreciation of the local currency against the weighted basket of currencies of its trading partners.
Select the correct answer using the code given below:
1 only
2 only
Both 1 and 2
Neither 1 nor 2
• The NEER is a measure of the value of a currency against a weighted average of several foreign currencies.
• An increase in the NEER indicates an appreciation of the local currency against the weighted basket of currencies of its trading partners.
• The NEER only describes relative value. It cannot definitively show whether a currency is strong or gaining strength in real terms.
• It only describes whether a currency is weak or strong, or weakening or strengthening, compared to foreign currencies. As with all exchange rates, the NEER can help identify which currencies store value more or less effectively. Exchange rates influence where international actors buy or sell goods.
• The NEER is used in economic studies and for policy analysis on international trade. It is also used by forex traders who engage in currency arbitrage. The Federal Reserve calculates three different NEER indices for the United States: the broad index, the major currencies index and the other important trading partners (OITP) index.
Nine litres are drawn from a cask full of water and it is then filled with milk, Nine litres of mixture are drawn and the cask is again filled with milk, The quantity of water now left in the cask to that of the milk in it is 16 : 9. How much does the cask hold?
Science & Technology · Easy
Sustainable development requires which of the following? 1. Preservation of ecological resources and greater use of renewable resources. 2. Encouragement to the use of environmentally-safe technologies for development purposes. 3. Formulation and implementation of policy framework for people-security and human justice, including ecological and economic security. Select the correct answer using the code given below:
Science & Technology · Easy
Consider the following statements about the Cabinet Mission: 1. Stafford Cripps was the Chairman of the Mission. 2. It supported the cause of Pakistan’s independence. 3. It recommended that provinces will have residuary powers. Which of the statements given above is/are not correct?
Science & Technology · Easy
The identity platform 'Aadhaar' provides open "Application Programming Interfaces (APIs)". What does it imply ? 1. It can be integrated into any electronic device. 2. Online authentication using iris is possible. Which of the statements given above is/ are correct ?
Science & Technology · Easy