An asset is classified as a Non-Performing Asset when interest or principal remains overdue for: MCQ with Answer and Explanation

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An asset is classified as a Non-Performing Asset when interest or principal remains overdue for:

A. 60 days

B. 30 days

C. 180 days

D. 90 days

Answer: Option D

Solution (By JKSSB Mock Tests)

An asset becomes an NPA when interest or principal is overdue for more than 90 days.

This question belongs to: Economy GK Economy Set 1

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Question #1

The concept of 'Mental Accounting' in behavioural economics refers to:

A. Only the formal accounting systems of firms

B. The perfect fungibility of all money

C. Only the national accounts

D. The tendency of individuals to categorise and treat money differently depending on its source or intended use

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Correct Answer: Option D

Explanation:
Mental accounting describes the cognitive processes whereby individuals separate their wealth into non-fungible mental accounts, leading to behaviour that violates the principle of fungibility assumed in standard theory.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Federal Reserve System' is the central bank of:

A. United Kingdom

B. Japan

C. Germany

D. United States

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Correct Answer: Option D

Explanation:
The Federal Reserve System is the central bank of the United States.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following best describes the concept of 'Income Effect' in consumer theory?

A. Change in supply due to a change in input prices

B. Change in demand due to a change in tastes

C. Change in quantity demanded due to a change in relative prices holding real income constant

D. Change in quantity demanded due to a change in real income resulting from a price change

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Correct Answer: Option D

Explanation:
The income effect refers to the change in quantity demanded of a good that results solely from the change in real income caused by a change in the price of the good.

This question belongs to: Economy GK Economy Set 1

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