Inflation-indexed bonds provide investors protection against: MCQ with Answer and Explanation

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Inflation-indexed bonds provide investors protection against:

A. inflation by linking principal or interest to a price index

B. market risk

C. income tax

D. exchange rate fluctuations

Answer: Option A

Solution (By JKSSB Mock Tests)

Inflation-indexed bonds link principal or interest payments to inflation, protecting investors from inflation.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

Which of the following is NOT a type of elasticity of demand?

A. Price elasticity

B. Supply elasticity of demand

C. Cross elasticity

D. Income elasticity

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Correct Answer: Option B

Explanation:
Elasticity of demand includes price elasticity, income elasticity and cross elasticity. Elasticity of supply is a separate concept relating to supply response.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Digital India' programme includes which of the following pillars?

A. Only defence

B. Digital infrastructure, governance and digital empowerment

C. Only agriculture

D. Only manufacturing

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Correct Answer: Option B

Explanation:
Digital India rests on digital infrastructure, digital governance and digital empowerment.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a classification of taxes based on their impact on income distribution?

A. Only direct and indirect

B. Progressive, proportional and regressive

C. Only ad valorem and specific

D. Only central and state

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Correct Answer: Option B

Explanation:
Taxes are classified as progressive (rate rises with income), proportional (constant rate) or regressive (rate falls with income) according to their effect on income distribution.

This question belongs to: Economy GK Economy Set 1

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