An 'export subsidy' is a payment to domestic producers that: MCQ with Answer and Explanation

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An 'export subsidy' is a payment to domestic producers that:

A. reduces their exports

B. increases imports

C. raises domestic prices only

D. increases their exports

Answer: Option D

Solution (By JKSSB Mock Tests)

Export subsidies lower costs for exporters, enabling them to sell abroad at competitive prices.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Goods and Services Tax' Council chairperson is:

A. RBI Governor

B. President

C. Prime Minister

D. Union Finance Minister

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Correct Answer: Option D

Explanation:
GST Council is chaired by the Union Finance Minister.

This question belongs to: Economy GK Economy Set 1

Question #2

The Reserve Tranche Position in India's forex reserves refers to:

A. gold held by RBI

B. SDR holdings

C. India's quota subscription to IMF paid in foreign currency that can be drawn without conditions

D. foreign currency assets held abroad

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Correct Answer: Option C

Explanation:
The Reserve Tranche Position is India's IMF quota subscription held in foreign currency.

This question belongs to: Economy GK Economy Set 1

Question #3

The term 'Non-Performing Asset' (NPA) in banking refers to:

A. A loan on which interest or principal is overdue for a specified period

B. Cash reserves of the bank

C. An asset that generates income regularly

D. Government securities held by banks

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Correct Answer: Option A

Explanation:
An NPA is a loan or advance where interest or principal remains overdue for a period of more than 90 days (as per RBI norms for term loans).

This question belongs to: Economy GK Economy Set 1

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