In the context of Indian agriculture, the term 'Minimum Support Price' is recommended by: MCQ with Answer and Explanation

In the context of Indian agriculture, the term 'Minimum Support Price' is recommended by:
A. Commission for Agricultural Costs and Prices
B. Reserve Bank of India
C. NITI Aayog
D. Food Corporation of India
Answer: Option A
Solution (By JKSSB Mock Tests)
The Commission for Agricultural Costs and Prices (CACP) recommends Minimum Support Prices for various crops, which are then approved by the government.

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Practice More Economy Set 1 Questions

Question #1
In the context of digital finance, 'Central Bank Digital Currency' (CBDC) refers to:
A. A digital form of central-bank money that is a direct liability of the central bank
B. Only commercial-bank deposits
C. Only privately issued cryptocurrencies
D. Only physical cash

Correct Answer: Option A


Explanation:
A central-bank digital currency is a digital payment instrument denominated in the national unit of account that is a direct liability of the central bank, distinct from both physical cash and commercial-bank deposits.

This question belongs to: Economy GK Economy Set 1
Question #2
The term 'Managed Floating' exchange rate system means that:
A. The exchange rate is fixed in terms of gold only
B. The exchange rate is largely market-determined with occasional central bank intervention
C. There is no role whatsoever for the central bank
D. The exchange rate is rigidly fixed by the government

Correct Answer: Option B


Explanation:
Under a managed float, the exchange rate is primarily determined by market forces, but the central bank intervenes from time to time to prevent excessive volatility or disorderly movements.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Fisher equation' is expressed as:
A. MV = PT
B. S = I
C. Y = C + I + G
D. i = r + π

Correct Answer: Option D


Explanation:
The Fisher equation is i = r + π, where i is nominal interest rate, r is real interest rate and π is inflation.

This question belongs to: Economy GK Economy Set 1