Disinvestment refers to: MCQ with Answer and Explanation

Question

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Disinvestment refers to:

A. sale of government equity in public sector enterprises

B. foreign investment in defence

C. purchase of private sector equity by the government

D. borrowing from the IMF

Answer: Option A

Solution (By JKSSB Mock Tests)

Disinvestment is the sale of government equity in public sector enterprises.

This question belongs to: Economy GK Economy Set 1

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Question #1

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The Human Development Index (HDI) is published by:

A. World Economic Forum

B. World Bank

C. United Nations Development Programme

D. International Monetary Fund

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Correct Answer: Option C

Explanation:
The Human Development Index is published annually by the United Nations Development Programme (UNDP) in its Human Development Report.

This question belongs to: Economy GK Economy Set 1

Question #2

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The 'Goods and Services Tax' on legal services provided to government is:

A. 18%

B. 12%

C. exempt

D. 0%

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Correct Answer: Option C

Explanation:
Legal services provided to government are exempt from GST.

This question belongs to: Economy GK Economy Set 1

Question #3

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The 'Taylor rule' is used by central banks to set:

A. reserve requirements

B. foreign exchange reserves

C. exchange rates

D. policy interest rates based on inflation and output gap

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Correct Answer: Option D

Explanation:
The Taylor rule prescribes setting policy interest rates based on inflation and output gap.

This question belongs to: Economy GK Economy Set 1

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