The concept of 'Tobin's q' is defined as: MCQ with Answer and Explanation

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The concept of 'Tobin's q' is defined as:

A. The ratio of consumption to income

B. The ratio of the market value of installed capital to its replacement cost

C. The ratio of money supply to GDP

D. The ratio of investment to saving

Answer: Option B

Solution (By JKSSB Mock Tests)

Tobin's q is the ratio of the market value of a firm's capital to the replacement cost of that capital. Investment is encouraged when q > 1 and discouraged when q < 1.

This question belongs to: Economy GK Economy Set 1

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The 'Economic Survey' is tabled in Parliament before the:

A. Monsoon Session

B. Winter Session

C. Railway Budget

D. Union Budget

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Correct Answer: Option D

Explanation:
The Economic Survey is tabled just before the Union Budget.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'repo rate' in India is the rate at which RBI lends to banks for:

A. unsecured overnight loans

B. long-term capital

C. foreign exchange

D. short-term funds against government securities

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Correct Answer: Option D

Explanation:
Repo rate is the rate at which RBI lends short-term funds to banks against government securities.

This question belongs to: Economy GK Economy Set 1

Question #3

In the context of economic reforms, 'Disinvestment' involves:

A. Complete closure of all public enterprises

B. Sale of government equity in public sector enterprises

C. Nationalisation of private firms

D. Increasing government stake in public sector enterprises

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Correct Answer: Option B

Explanation:
Disinvestment refers to the sale of government-held shares in public sector enterprises to private investors or the public, thereby reducing the government's ownership stake.

This question belongs to: Economy GK Economy Set 1

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