Reverse repo rate is the rate at which the RBI: MCQ with Answer and Explanation

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Reverse repo rate is the rate at which the RBI:

A. lends to the central government

B. borrows funds from commercial banks

C. lends to banks

D. rediscounts bills

Answer: Option B

Solution (By JKSSB Mock Tests)

Reverse repo rate is the rate at which the RBI borrows funds from commercial banks.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

In the context of public goods, the free-rider problem arises because public goods are:

A. Excludable

B. Rivalrous

C. Private in nature

D. Non-excludable

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Correct Answer: Option D

Explanation:
Since pure public goods are non-excludable, individuals can enjoy the benefits without contributing to the cost, creating an incentive to free-ride.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Demands for Grants' are part of:

A. monetary policy

B. stock market

C. Union Budget

D. foreign trade policy

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Correct Answer: Option C

Explanation:
Demands for Grants are part of the Union Budget.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a cause of frictional unemployment?

A. Economic recession

B. Time taken to find a new job after leaving the previous one

C. Seasonal nature of agriculture

D. Decline of an industry

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Correct Answer: Option B

Explanation:
Frictional unemployment occurs due to the time lag involved in people searching for and moving between jobs. It is short-term and voluntary in nature.

This question belongs to: Economy GK Economy Set 1

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