The 'break-even point' in consumption occurs when: MCQ with Answer and Explanation

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The 'break-even point' in consumption occurs when:

A. consumption equals income

B. saving equals investment

C. MPC equals zero

D. consumption equals saving

Answer: Option A

Solution (By JKSSB Mock Tests)

At break-even point, consumption equals income, so saving is zero.

This question belongs to: Economy GK Economy Set 1

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Question #1

The reverse repo in monetary policy means the RBI:

A. sells securities to banks with an agreement to repurchase them later, absorbing liquidity

B. buys government bonds outright

C. lends funds to banks against securities

D. reduces CRR

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Correct Answer: Option A

Explanation:
In reverse repo, the RBI sells securities to banks with an agreement to repurchase later, absorbing liquidity.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a characteristic of the Indian financial system?

A. Only one regulator for all financial markets

B. Absence of regulatory institutions

C. Complete self-regulation without government oversight

D. Presence of multiple regulators including RBI, SEBI, IRDAI and PFRDA

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Correct Answer: Option D

Explanation:
India's financial system is regulated by multiple specialised bodies: RBI for banking, SEBI for capital markets, IRDAI for insurance and PFRDA for pensions.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Index of Industrial Production' uses which base year currently?

A. 2015-16

B. 2019-20

C. 2011-12

D. 2004-05

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Correct Answer: Option C

Explanation:
IIP uses base year 2011-12.

This question belongs to: Economy GK Economy Set 1

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