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 interest forgone by holding cash instead of interest-bearing assets

B. The cost of producing goods

C. The cost of banking services only

D. The cost of printing money

Answer: Option A

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

The 'Goods and Services Tax' on data processing services is:

A. 5%

B. 12%

C. 18%

D. 28%

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Correct Answer: Option C

Explanation:
Data processing services attract 18% GST.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Administrative Tribunals' are established under which article?

A. Article 323A

B. Article 338

C. Article 329

D. Article 324

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Correct Answer: Option A

Explanation:
Administrative Tribunals are established under Article 323A.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a feature of the Indian tax system after the introduction of GST?

A. Persistence of multiple cascading taxes

B. A unified destination-based tax on goods and services with input tax credit mechanism

C. Only origin-based taxation

D. Complete elimination of all state-level taxes without dual structure

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Correct Answer: Option B

Explanation:
GST replaced a large number of cascading central and state taxes with a unified destination-based tax that permits seamless input tax credit.

This question belongs to: Economy GK Economy Set 1

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