Bank rate is the rate at which the RBI: MCQ with Answer and Explanation

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Bank rate is the rate at which the RBI:

A. borrows from commercial banks

B. rediscounts bills and provides long-term funds to banks

C. lends short-term funds against government securities

D. lends overnight against SLR securities

Answer: Option B

Solution (By JKSSB Mock Tests)

Bank rate is the rate at which the RBI rediscounts bills and provides longer-term funds.

This question belongs to: Economy GK Economy Set 1

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Question #1

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The 'demonetization' of high-value currency notes in 2016 included notes of which denominations?

A. Rs 1,000 and Rs 2,000

B. Rs 100 and Rs 1,000

C. Rs 100 and Rs 500

D. Rs 500 and Rs 1,000

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Correct Answer: Option D

Explanation:
Demonetization in November 2016 invalidated old Rs 500 and Rs 1,000 notes.

This question belongs to: Economy GK Economy Set 1

Question #2

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Which of the following is a flow variable?

A. GDP

B. Wealth

C. Capital stock

D. Money supply

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Correct Answer: Option A

Explanation:
GDP is measured over a period of time and is a flow variable.

This question belongs to: Economy GK Economy Set 1

Question #3

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The 'Goods and Services Tax' rate on concerts and sporting events is:

A. 28%

B. 5%

C. 18%

D. 12%

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Correct Answer: Option C

Explanation:
Concerts and sporting events attract 18% GST.

This question belongs to: Economy GK Economy Set 1

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