The concept of 'Seigniorage' is most closely related to: MCQ with Answer and Explanation

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The concept of 'Seigniorage' is most closely related to:

A. The real resources obtained by the government through the issue of base money

B. Revenue from disinvestment

C. Tax revenue from income tax

D. Interest payments on public debt

Answer: Option A

Solution (By JKSSB Mock Tests)

Seigniorage is the purchasing power that the government obtains by issuing base money; it equals the real value of the increase in base money.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'Finance Bill' is a Money Bill and can be introduced only in:

A. Lok Sabha

B. joint session

C. Rajya Sabha

D. either House

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Correct Answer: Option A

Explanation:
A Money Bill including Finance Bill can be introduced only in Lok Sabha.

This question belongs to: Economy GK Economy Set 1

Question #2

The term 'Disguised Unemployment' is commonly associated with:

A. Agricultural sector

B. Industrial sector

C. Information technology sector

D. Service sector

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Correct Answer: Option A

Explanation:
Disguised unemployment is prevalent in the agricultural sector of developing countries where more people are engaged in work than are actually required, with marginal productivity close to zero.

This question belongs to: Economy GK Economy Set 1

Question #3

If nominal GDP is Rs 12,500 crore and real GDP is Rs 10,000 crore, the GDP deflator is:

A. 150

B. 100

C. 125

D. 80

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Correct Answer: Option C

Explanation:
GDP deflator = (12500/10000) × 100 = 125.

This question belongs to: Economy GK Economy Set 1

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