The concept of 'Shadow Banking' refers to: MCQ with Answer and Explanation

The concept of 'Shadow Banking' refers to:
A. Only the activities of commercial banks
B. Only informal moneylenders in rural areas
C. Only central-bank operations
D. Credit intermediation involving entities and activities outside the regular banking system
Answer: Option D
Solution (By JKSSB Mock Tests)
Shadow banking comprises non-bank financial intermediaries and activities that perform bank-like functions—maturity, credit and liquidity transformation—but operate with less regulation and without direct access to central-bank liquidity.

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Practice More Economy Set 1 Questions

Question #1
The 'Startup India' initiative is implemented by which department?
A. Department for Promotion of Industry and Internal Trade
B. Ministry of Skill Development
C. Ministry of Finance
D. NITI Aayog

Correct Answer: Option A


Explanation:
Startup India is implemented by DPIIT.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Global Competitiveness Report' is published by:
A. UNCTAD
B. IMF
C. World Economic Forum
D. World Bank

Correct Answer: Option C


Explanation:
The Global Competitiveness Report is published by the World Economic Forum.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' on services provided by journalists is:
A. 0%
B. 18%
C. 12%
D. 5%

Correct Answer: Option B


Explanation:
Journalist services attract 18% GST unless exempt.

This question belongs to: Economy GK Economy Set 1