The 'European Union' is an example of: MCQ with Answer and Explanation

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The 'European Union' is an example of:

A. a simple customs union

B. an economic union

C. a free trade area only

D. a bilateral agreement

Answer: Option B

Solution (By JKSSB Mock Tests)

The European Union is an economic union with deep integration, including common currency for many members.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'bank rate' in India is currently aligned with:

A. CRR

B. MSF rate

C. reverse repo rate

D. repo rate

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Correct Answer: Option B

Explanation:
The bank rate is aligned with the MSF rate.

This question belongs to: Economy GK Economy Set 1

Question #2

The concept of 'Macroprudential Policy' aims at:

A. Only the soundness of individual institutions

B. Only price stability

C. Limiting systemic risk and ensuring the stability of the financial system as a whole

D. Only fiscal sustainability

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Correct Answer: Option C

Explanation:
Macroprudential policy uses regulatory and supervisory tools to mitigate systemic risk and to increase the resilience of the financial system as a whole, complementing microprudential supervision of individual institutions.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a feature of the Classical theory of interest?

A. Interest is determined by demand and supply of real savings and investment

B. Interest is determined by demand and supply of money

C. Liquidity preference determines interest

D. Interest is a monetary phenomenon only

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Correct Answer: Option A

Explanation:
In classical theory, the rate of interest is a real phenomenon determined by the demand for investment and the supply of savings.

This question belongs to: Economy GK Economy Set 1

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