Q. Which of the following factors is/are attributed to “hard currency”?
1.Economic and politically stability
2.High and unstable inflation with inconsistent growth
3.Balanced trade environment
Select the correct answer from below given codes:
Answer: B
Notes:
Explanation: Hard currencies are widely accepted around the world for international transactions and are expected to remain relatively stable through a short period of time, and to be highly liquid in the forex or foreign exchange (FX) market.
The factors attributed to hard currency include:
- Economic and politically stability
- Low and stable inflation with consistent growth
- Balanced trade environment
- Strong fiscal, monetary policies by government and central bank
- Effective national debt management and sensible interest rate policies
Source: Ramesh Singh
