Question

Comparison of GDPs does not give a clear picture of the relative development of countries. Which of the following is not an explanation for this?

• A. The purchasing power of the same unit of currency may vary from country to country.
• B. All high-income countries need not be developed countries.
• C. Central bank's intervention in fixing the exchange rate may distort the true value of a currency.
• D. Financial sector is not fully developed in many developing countries.

Answer 1

The correct option is D Financial sector is not fully developed in many developing countries.

Option: (d)