The 'Finance Commission' is appointed every how many years? MCQ with Answer and Explanation

The 'Finance Commission' is appointed every how many years?
A. 3 years
B. 10 years
C. 6 years
D. 5 years
Answer: Option D
Solution (By JKSSB Mock Tests)
The Finance Commission is constituted every five years under Article 280.

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Practice More Economy Set 1 Questions

Question #1
The 'euro' currency was introduced as an accounting currency in which year?
A. 1992
B. 2002
C. 2005
D. 1999

Correct Answer: Option D


Explanation:
The euro was introduced in bookkeeping form in 1999, with physical notes and coins in 2002.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a cause of cost-push inflation?
A. Increase in money supply
B. Increase in aggregate demand
C. Increase in government spending
D. Increase in wages and raw material costs

Correct Answer: Option D


Explanation:
Cost-push inflation arises when the cost of production increases due to higher wages, raw material prices or other input costs, leading to higher prices.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a feature of the Indian monetary policy framework since 2016?
A. Monetary targeting with M3 as the sole intermediate target
B. Exchange rate targeting
C. Multiple indicator approach without a nominal anchor
D. Flexible inflation targeting with CPI as the nominal anchor

Correct Answer: Option D


Explanation:
India adopted a Flexible Inflation Targeting framework in 2016, with CPI inflation as the nominal anchor and a target of 4% with a tolerance band of ±2%.

This question belongs to: Economy GK Economy Set 1