The Reserve Tranche Position in India's forex reserves refers to: MCQ with Answer and Explanation

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The Reserve Tranche Position in India's forex reserves refers to:

A. India's quota subscription to IMF paid in foreign currency that can be drawn without conditions

B. foreign currency assets held abroad

C. SDR holdings

D. gold held by RBI

Answer: Option A

Solution (By JKSSB Mock Tests)

The Reserve Tranche Position is India's IMF quota subscription held in foreign currency.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The primary market deals with:

A. new issue of securities

B. only government bonds

C. trading of existing shares

D. foreign currency

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Correct Answer: Option A

Explanation:
The primary market deals with the issuance of new securities.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on tour operator services is:

A. 5% without ITC

B. 12%

C. 5%

D. 18%

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Correct Answer: Option A

Explanation:
Tour operator services attract 5% GST without input tax credit.

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. Insurance always reduces risk-taking

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

C. Depositors monitor banks more intensively

D. Depositors become more careful about bank risk

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Correct Answer: Option B

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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