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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Practice More Economy Set 1 Questions

Question #1

The 'International Monetary Fund' Poverty Reduction and Growth Trust provides:

A. loans to developed countries

B. concessional lending to low-income countries

C. trade subsidies

D. military aid

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Correct Answer: Option B

Explanation:
PRGT provides concessional lending to low-income countries.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Skill India Mission' was launched in which year?

A. 2017

B. 2014

C. 2015

D. 2016

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Correct Answer: Option C

Explanation:
Skill India Mission was launched in 2015.

This question belongs to: Economy GK Economy Set 1

Question #3

The term 'Most Favoured Nation' treatment under WTO implies:

A. Preferential treatment to one country at the expense of others

B. Non-discriminatory treatment among all member countries

C. Higher tariffs for all members

D. Complete free trade without any rules

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Correct Answer: Option B

Explanation:
The MFN principle requires that any trade advantage granted to one WTO member must be extended to all other members, ensuring non-discrimination.

This question belongs to: Economy GK Economy Set 1

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