The 'Goods and Services Tax' on electricity transmission and distribution is: MCQ with Answer and Explanation

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The 'Goods and Services Tax' on electricity transmission and distribution is:

A. 18%

B. 5%

C. not under GST

D. 0%

Answer: Option C

Solution (By JKSSB Mock Tests)

Electricity transmission and distribution are outside GST.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

In accounting terms, the overall Balance of Payments always balances because:

A. exports always equal imports

B. current account equals capital account

C. it follows double-entry bookkeeping and official reserves adjust

D. exchange rates are fixed

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Correct Answer: Option C

Explanation:
The Balance of Payments always balances in accounting terms due to double-entry bookkeeping and reserve movements.

This question belongs to: Economy GK Economy Set 1

Question #2

In the context of monetary economics, the 'Friedman Rule' recommends that:

A. The nominal interest rate should be set to zero

B. The nominal interest rate should be set equal to the real interest rate plus inflation

C. Money growth should equal the growth of real output plus inflation

D. Only fiscal policy should be used

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Correct Answer: Option A

Explanation:
The Friedman rule states that the optimal monetary policy sets the nominal interest rate to zero so that the opportunity cost of holding real money balances equals the social cost of producing them (approximately zero).

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a characteristic of the Indian financial system?

A. Only one regulator for all financial markets

B. Complete self-regulation without government oversight

C. Absence of regulatory institutions

D. Presence of multiple regulators including RBI, SEBI, IRDAI and PFRDA

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Correct Answer: Option D

Explanation:
India's financial system is regulated by multiple specialised bodies: RBI for banking, SEBI for capital markets, IRDAI for insurance and PFRDA for pensions.

This question belongs to: Economy GK Economy Set 1

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