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General Knowledge QUESTION #4810
Question 1
An index that estimates the true purchasing power exchange rate among different currencies is called?
  • Human Development Index
  • Exchange Rate
  • Purchasing Power Parity✔️
  • Trade Weighted Index
Correct Answer Explanation
Purchasing Power Parity (PPP) is an economic theory and index that adjusts exchange rates to reflect the relative purchasing power of currencies in their home countries, enabling more accurate economic comparisons.