The Marginal Standing Facility rate is generally set how much above the repo rate? MCQ with Answer and Explanation

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The Marginal Standing Facility rate is generally set how much above the repo rate?

A. 0.25 percentage points

B. 2.00 percentage points

C. 0.50 percentage points

D. 1.00 percentage point

Answer: Option A

Solution (By JKSSB Mock Tests)

The MSF rate is usually 0.25 percentage points above the repo rate.

This question belongs to: Economy GK Economy Set 1

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Question #1

In the consumption function C = a + bY, 'a' represents:

A. autonomous consumption

B. saving

C. marginal propensity to consume

D. investment

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Correct Answer: Option A

Explanation:
In C = a + bY, 'a' is autonomous consumption, consumption independent of income.

This question belongs to: Economy GK Economy Set 1

Question #2

The term 'Structural Unemployment' arises due to:

A. Seasonal variations in demand

B. Cyclical fluctuations in economic activity

C. Temporary mismatch between jobs and workers

D. Changes in the structure of the economy

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Correct Answer: Option D

Explanation:
Structural unemployment occurs due to changes in the structure of the economy, such as technological changes or decline of certain industries, creating a mismatch between skills of workers and available jobs.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Goods and Services Tax' has enabled seamless input tax credit across states, which has eliminated:

A. direct taxes

B. income tax

C. customs duty

D. tax cascading and barriers to interstate trade

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Correct Answer: Option D

Explanation:
Seamless ITC has removed cascading and eased interstate trade.

This question belongs to: Economy GK Economy Set 1

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