The 'Goods and Services Tax' on franchise services is: MCQ with Answer and Explanation

The 'Goods and Services Tax' on franchise services is:
A. 18%
B. 12%
C. 5%
D. 28%
Answer: Option A
Solution (By JKSSB Mock Tests)
Franchise services attract 18% GST.

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Practice More Economy Set 1 Questions

Question #1
The 'Periodic Labour Force Survey' provides estimates of:
A. foreign exchange reserves
B. employment and unemployment
C. GDP
D. inflation

Correct Answer: Option B


Explanation:
PLFS provides labour force, employment and unemployment estimates.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is the primary objective of monetary policy in India?
A. Increasing government expenditure
B. Maximising tax revenue
C. Price stability while keeping in mind growth
D. Reducing fiscal deficit

Correct Answer: Option C


Explanation:
As per the Monetary Policy Framework Agreement, the primary objective of monetary policy is to maintain price stability while keeping in mind the objective of growth.

This question belongs to: Economy GK Economy Set 1
Question #3
The concept of 'Moral Hazard' in the context of deposit insurance arises because:
A. Banks may take excessive risks knowing that deposits are insured
B. Insurance always reduces risk-taking
C. Depositors become more careful about bank risk
D. Depositors monitor banks more intensively

Correct Answer: Option A


Explanation:
Deposit insurance can create moral hazard by reducing depositors’ incentive to monitor banks and by encouraging banks to take greater risks because the downside is partly borne by the insurer.

This question belongs to: Economy GK Economy Set 1