The 'RBI Act' was amended in 2016 to give statutory backing to: MCQ with Answer and Explanation

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The 'RBI Act' was amended in 2016 to give statutory backing to:

A. payment banks

B. financial inclusion

C. inflation targeting and the Monetary Policy Committee

D. digital currency

Answer: Option C

Solution (By JKSSB Mock Tests)

The RBI Act amendment in 2016 gave statutory backing to flexible inflation targeting and the MPC.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'Emission Trading System' is a market-based approach to control pollution by:

A. creating tradable emission permits

B. banning all emissions

C. taxing all production

D. subsidizing polluters

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Correct Answer: Option A

Explanation:
Emission trading creates a market for tradable emission allowances, limiting total emissions.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'General Budget' in India was separated from the Railway Budget in which year?

A. 1921

B. 1947

C. 1924

D. 1950

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Correct Answer: Option C

Explanation:
Railway Budget was separated from the General Budget in 1924 on the Acworth Committee recommendation.

This question belongs to: Economy GK Economy Set 1

Question #3

The concept of 'Moral Hazard' in the context of deposit insurance arises because:

A. Banks may take excessive risks knowing that deposits are insured

B. Depositors become more careful about bank risk

C. Depositors monitor banks more intensively

D. Insurance always reduces risk-taking

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Correct Answer: Option A

Explanation:
Deposit insurance can create moral hazard by reducing depositors’ incentive to monitor banks and by encouraging banks to take greater risks because the downside is partly borne by the insurer.

This question belongs to: Economy GK Economy Set 1

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