External benchmark linked lending rates require banks to link retail and MSME loans to: MCQ with Answer and Explanation

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External benchmark linked lending rates require banks to link retail and MSME loans to:

A. external benchmarks such as repo rate or Treasury bill yield

B. fixed deposit rate

C. MCLR only

D. base rate only

Answer: Option A

Solution (By JKSSB Mock Tests)

Banks link retail and MSME loans to external benchmarks such as the repo rate or Treasury bill yields.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'worker population ratio' is defined as:

A. workers divided by population in relevant age group

B. workers divided by total population

C. unemployed divided by labour force

D. labour force divided by population

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Correct Answer: Option A

Explanation:
Worker population ratio is workers as a percentage of population in the relevant age group.

This question belongs to: Economy GK Economy Set 1

Question #2

The concept of 'Pass-Through' of exchange-rate changes refers to:

A. The extent to which changes in the nominal exchange rate are reflected in domestic prices of traded goods

B. Only the effect on output

C. The complete absence of price adjustment

D. Only the effect on interest rates

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Correct Answer: Option A

Explanation:
Exchange-rate pass-through measures the degree to which a change in the nominal exchange rate is transmitted to import prices and ultimately to consumer prices in the domestic economy.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a feature of the 'Carbon Border Adjustment Mechanism' proposals?

A. Only domestic carbon taxes without border measures

B. A levy on imports based on their embedded carbon content to prevent carbon leakage and protect domestic climate policies

C. A complete ban on all imports

D. Only export subsidies for green goods

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Correct Answer: Option B

Explanation:
A carbon border adjustment mechanism imposes a charge on imported goods equivalent to the domestic carbon price, thereby reducing the risk of carbon leakage and maintaining the competitiveness of domestic producers.

This question belongs to: Economy GK Economy Set 1

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