The 'dollarization' of an economy means: MCQ with Answer and Explanation

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The 'dollarization' of an economy means:

A. pegging to the dollar

B. adopting the US dollar as the official currency

C. exporting to the US only

D. buying US bonds

Answer: Option B

Solution (By JKSSB Mock Tests)

Dollarization occurs when a country adopts the US dollar as its official currency.

This question belongs to: Economy GK Economy Set 1

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Question #1

The guiding philosophy of NITI Aayog is:

A. command economy

B. import substitution

C. cooperative federalism

D. centralized planning

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Correct Answer: Option C

Explanation:
NITI Aayog works on the principle of cooperative federalism.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Trade Receivables Discounting System' platform helps MSMEs by:

A. providing land

B. insuring their factories

C. providing direct subsidies

D. discounting their receivables from corporate buyers

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Correct Answer: Option D

Explanation:
TReDS helps MSMEs obtain working capital by discounting their receivables.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'indirect tax' includes which of the following?

A. Wealth tax

B. GST and excise duty

C. Income tax

D. Corporate tax

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Correct Answer: Option B

Explanation:
GST and excise duty are indirect taxes.

This question belongs to: Economy GK Economy Set 1

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