The 'reverse charge mechanism' under GST is applicable when: MCQ with Answer and Explanation

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The 'reverse charge mechanism' under GST is applicable when:

A. the recipient is required to pay tax instead of the supplier

B. a registered supplier sells to an unregistered recipient

C. goods are exported

D. goods are imported only

Answer: Option A

Solution (By JKSSB Mock Tests)

Under reverse charge, the recipient pays GST instead of the supplier.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'New Development Bank' was established by BRICS in which year?

A. 2015

B. 2016

C. 2014

D. 2012

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Correct Answer: Option C

Explanation:
The New Development Bank was established by BRICS in 2014 and began operations in 2015.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Fisher effect' states that nominal interest rates:

A. adjust one-for-one with expected inflation

B. are always zero

C. equal real interest rate minus inflation

D. equal real interest rate divided by inflation

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Correct Answer: Option A

Explanation:
The Fisher effect states that nominal interest rates rise with expected inflation.

This question belongs to: Economy GK Economy Set 1

Question #3

The term 'Monetary Base' or 'High-Powered Money' consists of:

A. Only government securities

B. Only demand deposits

C. Only time deposits

D. Currency with public and reserves of banks with RBI

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Correct Answer: Option D

Explanation:
High-powered money (monetary base) consists of currency held by the public and the reserves (cash and deposits) of commercial banks with the central bank.

This question belongs to: Economy GK Economy Set 1

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