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. foreign exchange

B. long-term capital

C. unsecured overnight loans

D. short-term funds against government securities

Answer: Option D

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 'Reserve Bank of India' was established on:

A. 1 April 1934

B. 1 July 1934

C. 1 April 1935

D. 1 January 1935

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Correct Answer: Option C

Explanation:
The RBI was established on 1 April 1935.

This question belongs to: Economy GK Economy Set 1

Question #2

The expenditure on old age pension is classified as:

A. developmental expenditure

B. plan expenditure

C. revenue expenditure

D. capital expenditure

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Correct Answer: Option C

Explanation:
Old age pension is a recurring revenue expenditure that does not create assets.

This question belongs to: Economy GK Economy Set 1

Question #3

Fixed costs are costs that:

A. remain constant irrespective of output in the short run

B. equal variable costs

C. vary directly with output

D. are zero in the long run

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Correct Answer: Option A

Explanation:
Fixed costs do not change with the level of output in the short run.

This question belongs to: Economy GK Economy Set 1

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