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

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The 'monetary transmission mechanism' refers to:

A. the printing of new currency

B. the exchange of old currency notes

C. the transmission of money across banks

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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Question #1

The 'Contract Labour (Regulation and Abolition) Act' was enacted in which year?

A. 1961

B. 1976

C. 1986

D. 1970

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Correct Answer: Option D

Explanation:
The Contract Labour Act was enacted in 1970.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'GST Council' does not deal with:

A. income tax rates

B. GST exemptions

C. GST rates

D. GST returns

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Correct Answer: Option A

Explanation:
Income tax rates are not within GST Council's purview.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Jamaica Accords' of 1976 formally recognized:

A. the euro currency

B. a single world currency

C. the gold standard

D. floating exchange rates

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Correct Answer: Option D

Explanation:
The Jamaica Accords formalized floating exchange rates.

This question belongs to: Economy GK Economy Set 1

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