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. Only in election years
B. True
C. Only for states
D. False
Answer: Option B
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 'Infant Industry Argument' for protection supports:
A. protecting mature industries
B. temporary protection to new industries to help them develop
C. free trade
D. permanent tariffs on all imports

Correct Answer: Option B


Explanation:
The infant industry argument supports temporary protection for new industries until they become competitive.

This question belongs to: Economy GK Economy Set 1
Question #2
In the context of monetary policy implementation, the 'Corridor System' refers to:
A. The arrangement in which the policy rate is kept within a standing-facility corridor defined by the lending and deposit rates of the central bank
B. Only the range of fiscal targets
C. Only the range of inflation targets
D. The absence of any standing facilities

Correct Answer: Option A


Explanation:
In a corridor system the central bank’s overnight lending rate and deposit rate form a corridor within which the interbank rate fluctuates; open-market operations keep the market rate near the centre of the corridor.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a function of the International Monetary Fund?
A. Regulating international trade rules
B. Providing only bilateral aid
C. Providing long-term project finance for infrastructure development
D. Providing short-term financial assistance for balance of payments problems and conducting surveillance

Correct Answer: Option D


Explanation:
The IMF provides temporary financial support to countries facing balance of payments difficulties, conducts economic surveillance and offers technical assistance. Long-term project finance is the domain of the World Bank.

This question belongs to: Economy GK Economy Set 1