Attempt this previous-year question. The correct option stays hidden until you choose.
Consider the following statements:
1. Purchasing Power Parity (PPP) exchange rates are calculated by comparing the prices of the same basket of goods and services in different countries.
2. In terms of PPP dollars, India is the sixth largest economy in the world.
Which of the statements given above is/are correct?
Pick an option to check yourself.
• Correct Answer: A
• PPP exchange rates compare prices of a common basket of goods across countries to measure relative purchasing power.
• In PPP terms, India is the third-largest economy (after China and USA); it is sixth in nominal GDP terms.
• Statement 2 is incorrect.
Attempt Prelims MCQs or open Mains questions by paper — then continue the same bank inside the app with visual decks.
GyanGram