Minimum Alternate Tax is levied on companies that: MCQ with Answer and Explanation

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Minimum Alternate Tax is levied on companies that:

A. have no profit

B. pay very low tax due to exemptions and deductions

C. are in special economic zones

D. are foreign companies

Answer: Option B

Solution (By JKSSB Mock Tests)

MAT is imposed on companies whose normal tax liability is low because of exemptions and deductions.

This question belongs to: Economy GK Economy Set 1

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Question #1

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The 'Fiscal Responsibility and Budget Management Act' initially aimed to reduce fiscal deficit to what percentage of GDP by 2008-09?

A. 6%

B. 3%

C. 2%

D. 5%

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Correct Answer: Option B

Explanation:
The FRBM Act initially aimed to reduce fiscal deficit to 3% of GDP by 2008-09.

This question belongs to: Economy GK Economy Set 1

Question #2

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The concept of 'Too Big to Fail' in banking refers to:

A. The legal requirement that all banks must be small

B. The expectation that systemically important banks will receive government support in the event of distress

C. Only the size of non-bank firms

D. The absence of any systemic risk

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Correct Answer: Option B

Explanation:
Too-big-to-fail refers to the market perception or policy practice that certain large and interconnected financial institutions will be rescued by the authorities because their failure would impose systemic costs.

This question belongs to: Economy GK Economy Set 1

Question #3

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The 'Nifty 50' index comprises how many stocks of NSE?

A. 30

B. 50

C. 100

D. 200

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Correct Answer: Option B

Explanation:
Nifty 50 comprises 50 stocks of NSE.

This question belongs to: Economy GK Economy Set 1

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