The Finance Commission is constituted under which Article of the Constitution? MCQ with Answer and Explanation

The Finance Commission is constituted under which Article of the Constitution?
A. 280
B. 356
C. 324
D. 360
Answer: Option A
Solution (By JKSSB Mock Tests)
The Finance Commission is constituted under Article 280 of the Constitution.

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Practice More Economy Set 1 Questions

Question #1
The 'Pradhan Mantri Suraksha Bima Yojana' provides insurance against:
A. unemployment
B. crop loss
C. health expenses
D. accidental death and disability

Correct Answer: Option D


Explanation:
PMSBY provides accidental death and disability insurance.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is NOT a feature of globalisation?
A. Spread of technology and information
B. Increased cross-border trade and investment
C. Greater integration of markets
D. Complete isolation of national economies

Correct Answer: Option D


Explanation:
Globalisation involves increasing integration of national economies through trade, investment, technology and information flows, not isolation.

This question belongs to: Economy GK Economy Set 1
Question #3
The concept of 'Currency Substitution' or 'Dollarisation' refers to:
A. The complete replacement of the domestic currency by a commodity standard
B. Only the use of gold coins
C. Only official dollarisation by law
D. The use of a foreign currency in parallel with or instead of the domestic currency

Correct Answer: Option D


Explanation:
Currency substitution occurs when residents hold and use a foreign currency (often the US dollar) for transactions or as a store of value alongside or instead of the domestic currency.

This question belongs to: Economy GK Economy Set 1