The call money market deals in: MCQ with Answer and Explanation

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The call money market deals in:

A. corporate equity shares

B. foreign exchange only

C. very short-term interbank funds, usually overnight

D. long-term government securities

Answer: Option C

Solution (By JKSSB Mock Tests)

The call money market deals in very short-term interbank funds, often overnight.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The concept of 'Producer Surplus' is the difference between:

A. Price and marginal cost only

B. What producers are willing to accept and what they actually receive

C. Total revenue and total cost

D. What consumers are willing to pay and what they actually pay

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Correct Answer: Option B

Explanation:
Producer surplus is the difference between the amount a producer is willing to accept for a good and the amount actually received (market price).

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a characteristic of the 'Overlapping Generations' model?

A. Agents live for multiple periods and different generations coexist

B. Agents live for only one period

C. Only static optimisation is considered

D. There is a single infinitely-lived representative agent

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Correct Answer: Option A

Explanation:
In overlapping-generations models, individuals live for a finite number of periods and at any date several generations coexist, allowing analysis of intergenerational issues and dynamic inefficiency.

This question belongs to: Economy GK Economy Set 1

Question #3

Government securities are also known as:

A. commercial paper

B. certificates of deposit

C. gilt-edged securities

D. corporate bonds

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Correct Answer: Option C

Explanation:
Government securities are called gilt-edged securities because of low default risk.

This question belongs to: Economy GK Economy Set 1

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