The 'FRBM Act' requires the government to present a 'Medium Term Fiscal Policy Statement' along with the budget to Parliament. MCQ with Answer and Explanation

The 'FRBM Act' requires the government to present a 'Medium Term Fiscal Policy Statement' along with the budget to Parliament.
A. True
B. False
C. Only in election years
D. Only for states
Answer: Option A
Solution (By JKSSB Mock Tests)
The FRBM Act requires the government to present a Medium Term Fiscal Policy Statement, Fiscal Policy Strategy Statement and Macroeconomic Framework Statement.

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Practice More Economy Set 1 Questions

Question #1
The 'Sagarmala' programme was launched in:
A. 2013
B. 2017
C. 2016
D. 2015

Correct Answer: Option D


Explanation:
Sagarmala was launched in 2015.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a feature of the 'Uncovered Interest Parity' puzzle or forward-premium puzzle?
A. Interest differentials are always zero
B. Forward rates are perfect predictors of future spot rates
C. High-interest currencies always depreciate as predicted
D. High-interest currencies tend to appreciate rather than depreciate as uncovered interest parity would predict

Correct Answer: Option D


Explanation:
Empirical evidence often shows that currencies with high interest rates tend to appreciate, contrary to the prediction of uncovered interest parity that they should depreciate; this is known as the forward-premium puzzle.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' on call centre services is:
A. 18%
B. 5%
C. 28%
D. 12%

Correct Answer: Option A


Explanation:
Call centre services attract 18% GST.

This question belongs to: Economy GK Economy Set 1