If the reserve ratio is 10%, the simple deposit/money multiplier is: MCQ with Answer and Explanation

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If the reserve ratio is 10%, the simple deposit/money multiplier is:

A. 20

B. 5

C. 100

D. 10

Answer: Option D

Solution (By JKSSB Mock Tests)

Money multiplier = 1/reserve ratio = 1/0.10 = 10.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Goods and Services Tax' on cab services is:

A. 12%

B. 18%

C. 5%

D. 28%

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Correct Answer: Option A

Explanation:
Cab services attract 12% GST with input tax credit, or 5% without ITC under certain conditions.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'RoDTEP' scheme remits which taxes on exported products?

A. duties and taxes levied at central, state and local levels on inputs

B. direct taxes

C. income tax

D. wealth tax

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Correct Answer: Option A

Explanation:
RoDTEP remits embedded central, state and local duties/taxes on exported products.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Goods and Services Tax' rate on cement is:

A. 12%

B. 5%

C. 28%

D. 18%

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Correct Answer: Option C

Explanation:
Cement attracts 28% GST.

This question belongs to: Economy GK Economy Set 1

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