Forward guidance by a central bank means: MCQ with Answer and Explanation

Forward guidance by a central bank means:
A. guiding exporters
B. regulating stock exchanges
C. communicating future policy intentions to influence expectations
D. fixing exchange rates
Answer: Option C
Solution (By JKSSB Mock Tests)
Forward guidance is communication by a central bank about future policy intentions.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is a feature of the 'Data Portability' right?
A. Only the right to delete data
B. The right of individuals to receive their personal data in a structured, commonly used format and to transmit it to another controller
C. Only the right of platforms to retain all data
D. The complete prohibition on data transfers

Correct Answer: Option B


Explanation:
Data portability, recognised in the GDPR and similar laws, allows individuals to obtain their personal data in a machine-readable format and to transfer it to another service provider, thereby reducing lock-in.

This question belongs to: Economy GK Economy Set 1
Question #2
The concept of 'Creative Destruction' is associated with the work of:
A. John Maynard Keynes
B. Adam Smith
C. David Ricardo
D. Joseph Schumpeter

Correct Answer: Option D


Explanation:
Joseph Schumpeter described creative destruction as the process by which innovation continuously revolutionises the economic structure from within, destroying old industries and creating new ones.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a tertiary sector activity?
A. Mining
B. Agriculture
C. Construction
D. Software services

Correct Answer: Option D


Explanation:
Software services are part of the tertiary or services sector.

This question belongs to: Economy GK Economy Set 1