The 'monetary transmission mechanism' refers to: MCQ with Answer and Explanation

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The 'monetary transmission mechanism' refers to:

A. the exchange of old currency notes

B. the transmission of money across banks

C. the printing of new currency

D. the process by which monetary policy changes affect output and inflation

Answer: Option D

Solution (By JKSSB Mock Tests)

Monetary transmission is the process through which policy rate changes affect the real economy.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'Goods and Services Tax' on broadcasting services is:

A. 18%

B. 5%

C. 12%

D. 28%

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Correct Answer: Option A

Explanation:
Broadcasting services attract 18% GST.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Sovereign Wealth Fund' is a state-owned investment fund that invests in:

A. only domestic infrastructure

B. various financial assets including equities and real estate

C. only gold

D. only government bonds

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Correct Answer: Option B

Explanation:
Sovereign wealth funds invest in financial assets such as equities, bonds and real estate.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'World Bank's World Development Indicators' is a publication that:

A. publishes stock prices

B. provides development data on countries

C. tracks military spending

D. sets interest rates

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Correct Answer: Option B

Explanation:
World Development Indicators provides comprehensive development data.

This question belongs to: Economy GK Economy Set 1

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