The 'repo rate' in India is the rate at which RBI lends to banks for: MCQ with Answer and Explanation

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The 'repo rate' in India is the rate at which RBI lends to banks for:

A. unsecured overnight loans

B. foreign exchange

C. short-term funds against government securities

D. long-term capital

Answer: Option C

Solution (By JKSSB Mock Tests)

Repo rate is the rate at which RBI lends short-term funds to banks against government securities.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'State Bank of India' was created in 1955 by amalgamating which bank?

A. Bank of Madras

B. Imperial Bank of India

C. Bank of Calcutta

D. Bank of Bombay

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Correct Answer: Option B

Explanation:
The State Bank of India was formed in 1955 by taking over the Imperial Bank of India.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on hotel accommodation below Rs 1,000 is:

A. 12%

B. exempt

C. 0%

D. 5%

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Correct Answer: Option B

Explanation:
Hotel rooms with tariff below Rs 1,000 are exempt from GST.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'demonstration effect' in consumption means:

A. people consume only basic goods

B. people save more

C. people copy the consumption patterns of others

D. people reduce consumption

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Correct Answer: Option C

Explanation:
The demonstration effect is the tendency to imitate the consumption patterns of others.

This question belongs to: Economy GK Economy Set 1

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