The concept of 'Opportunity Cost of Holding Money' is related to: MCQ with Answer and Explanation

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The concept of 'Opportunity Cost of Holding Money' is related to:

A. The cost of producing goods

B. The interest forgone by holding cash instead of interest-bearing assets

C. The cost of banking services only

D. The cost of printing money

Answer: Option B

Solution (By JKSSB Mock Tests)

The opportunity cost of holding money is the interest income that could have been earned by holding interest-bearing assets instead of cash.

This question belongs to: Economy GK Economy Set 1

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Question #1

Which of the following is a major source of tax revenue for the Central Government?

A. Only property tax collected by local bodies

B. Only professional tax

C. Corporation tax, income tax and central GST

D. Only entertainment tax

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Correct Answer: Option C

Explanation:
The major sources of central tax revenue include corporation tax, personal income tax, and the central share of GST, along with customs duties.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Special Officer for Linguistic Minorities' is appointed under which article?

A. Article 352

B. Article 360

C. Article 350B

D. Article 365

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Correct Answer: Option C

Explanation:
Special Officer for Linguistic Minorities is appointed under Article 350B.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Monetary Policy Committee' meets at least how many times in a financial year?

A. 2

B. 6

C. 4

D. 12

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Correct Answer: Option C

Explanation:
The MPC meets at least four times a year.

This question belongs to: Economy GK Economy Set 1

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