The 'Goods and Services Tax' zero rating on exports means: MCQ with Answer and Explanation

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The 'Goods and Services Tax' zero rating on exports means:

A. exports are taxed at 5%

B. exports are taxed at zero rate and input tax credit is allowed

C. exports are exempt with no input tax credit

D. exports are banned

Answer: Option B

Solution (By JKSSB Mock Tests)

Zero-rated supplies are taxed at 0% and allow input tax credit refunds.

This question belongs to: Economy GK Economy Set 1

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Question #1

Special Drawing Rights are:

A. an international reserve asset created by the IMF

B. currency of the World Bank

C. a type of bond issued by ADB

D. loans given by WTO

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Correct Answer: Option A

Explanation:
SDRs are an international reserve asset created by the IMF.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'MSME Development Act' was enacted in which year?

A. 2010

B. 2015

C. 2000

D. 2006

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Correct Answer: Option D

Explanation:
The MSME Development Act was enacted in 2006.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a characteristic of the 'Risk-Sharing' benefits of international financial integration?

A. Integration always increases consumption volatility

B. Only closed economies can smooth consumption

C. Countries can smooth consumption in the face of idiosyncratic shocks by trading claims on future output

D. Risk-sharing is irrelevant for welfare

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Correct Answer: Option C

Explanation:
International risk-sharing allows countries to diversify away country-specific income shocks by holding foreign assets, thereby reducing the volatility of national consumption relative to national output.

This question belongs to: Economy GK Economy Set 1

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