The 'Goods and Services Tax' on Jan Dhan accounts is: MCQ with Answer and Explanation

The 'Goods and Services Tax' on Jan Dhan accounts is:
A. 5%
B. 0%
C. 18%
D. exempt
Answer: Option D
Solution (By JKSSB Mock Tests)
Basic savings bank deposit accounts under PMJDY are exempt from GST.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is a major reason for the growth of the service sector in India?
A. Decline in demand for services
B. Complete absence of industrial growth
C. Only agricultural growth
D. Liberalisation, IT revolution and rising incomes

Correct Answer: Option D


Explanation:
The service sector in India has grown rapidly due to economic liberalisation, the information technology revolution, rising incomes and global demand for services such as software and BPO.

This question belongs to: Economy GK Economy Set 1
Question #2
The concept of 'Too Big to Fail' in banking refers to:
A. The legal requirement that all banks must be small
B. Only the size of non-bank firms
C. The expectation that systemically important banks will receive government support in the event of distress
D. The absence of any systemic risk

Correct Answer: Option C


Explanation:
Too-big-to-fail refers to the market perception or policy practice that certain large and interconnected financial institutions will be rescued by the authorities because their failure would impose systemic costs.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a feature of the 'Quantity Theory of Money' in its modern restatement by Friedman?
A. Velocity is highly unstable and unpredictable
B. Interest rates do not affect money demand
C. Money demand is a stable function of a limited number of variables and the velocity is predictable
D. Only the transactions motive matters

Correct Answer: Option C


Explanation:
Friedman’s restatement treats the demand for money as a stable function of permanent income, interest rates and other variables, implying that velocity, while not constant, is predictable.

This question belongs to: Economy GK Economy Set 1