The concept of 'Stranded Assets' in the energy transition refers to: MCQ with Answer and Explanation

The concept of 'Stranded Assets' in the energy transition refers to:
A. Assets that suffer unanticipated write-downs or devaluations because of climate-related risks and the shift to a low-carbon economy
B. Only newly created green assets
C. Only fully depreciated assets
D. Only financial assets unrelated to the real economy
Answer: Option A
Solution (By JKSSB Mock Tests)
Stranded assets are those that lose economic value prematurely as a result of changes associated with the energy transition, such as policy shifts, technological change or shifts in demand away from fossil fuels.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is an example of a quasi-public good?
A. Clean air
B. Education
C. Street lighting
D. National defence

Correct Answer: Option B


Explanation:
Education is often classified as a quasi-public (or merit) good because it is partially excludable and rivalrous but generates significant positive externalities, justifying public provision.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'monetary policy framework' in India legally mandates RBI to target:
A. exchange rate
B. GDP growth
C. fiscal deficit
D. consumer price inflation

Correct Answer: Option D


Explanation:
The RBI's monetary policy framework targets consumer price inflation.

This question belongs to: Economy GK Economy Set 1
Question #3
Under a floating exchange rate system, a fall in the external value of a currency due to market forces is called:
A. depreciation
B. appreciation
C. devaluation
D. revaluation

Correct Answer: Option A


Explanation:
A market-driven fall in the external value of a currency is called depreciation.

This question belongs to: Economy GK Economy Set 1