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. lends overnight against SLR securities

B. lends short-term funds against government securities

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

D. borrows from commercial banks

Answer: Option C

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

The 'Goods and Services Tax' is applicable in:

A. only states

B. all states and union territories

C. only union territories

D. only special economic zones

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Correct Answer: Option B

Explanation:
GST applies throughout India including states and union territories.

This question belongs to: Economy GK Economy Set 1

Question #2

The concept of 'Pareto Efficiency' implies that:

A. All markets are perfectly competitive

B. Resources can be reallocated to make someone better off without making anyone worse off

C. No reallocation can make one person better off without making someone else worse off

D. Income is equally distributed

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Correct Answer: Option C

Explanation:
A Pareto efficient allocation is one where it is impossible to make any individual better off without making at least one individual worse off.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Impossible Trinity' in international economics is also called:

A. the monetary policy trilemma

B. the development trilemma

C. the fiscal trilemma

D. the trade trilemma

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Correct Answer: Option A

Explanation:
The Impossible Trinity is also known as the monetary policy trilemma.

This question belongs to: Economy GK Economy Set 1

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