In the context of monetary policy, the 'Corridor' system refers to: MCQ with Answer and Explanation

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In the context of monetary policy, the 'Corridor' system refers to:

A. The range of exchange rate fluctuations

B. The range between repo and reverse repo rates

C. The range of CRR variations

D. The range of fiscal deficit targets

Answer: Option B

Solution (By JKSSB Mock Tests)

The policy rate corridor is defined by the repo rate (ceiling) and reverse repo rate (floor), within which the overnight inter-bank rate fluctuates.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'GST practitioner' is a person who:

A. sets GST rates

B. collects taxes

C. audits GST revenue

D. assists taxpayers in filing GST returns and compliance

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Correct Answer: Option D

Explanation:
A GST practitioner assists taxpayers in GST compliance and returns.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a feature of the Indian monetary system?

A. Gold standard

B. Complete free floating without RBI role

C. Managed floating exchange rate with inflation targeting

D. Fixed exchange rate without any intervention

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Correct Answer: Option C

Explanation:
India follows a managed floating exchange rate regime and has adopted a flexible inflation targeting framework for monetary policy.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Goods and Services Tax' on petroleum and natural gas is:

A. not under GST

B. 18%

C. 5%

D. 0%

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Correct Answer: Option A

Explanation:
Petroleum products and natural gas are outside GST.

This question belongs to: Economy GK Economy Set 1

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