The reverse repo in monetary policy means the RBI: MCQ with Answer and Explanation

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The reverse repo in monetary policy means the RBI:

A. buys government bonds outright

B. sells securities to banks with an agreement to repurchase them later, absorbing liquidity

C. reduces CRR

D. lends funds to banks against securities

Answer: Option B

Solution (By JKSSB Mock Tests)

In reverse repo, the RBI sells securities to banks with an agreement to repurchase later, absorbing liquidity.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Goods and Services Tax' on life insurance premiums is:

A. 18%

B. 5%

C. 12%

D. 0%

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Correct Answer: Option A

Explanation:
Life insurance premiums attract 18% GST.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Union Budget' in India is presented in Parliament on:

A. 1 March every year

B. 1 April every year

C. 31 March every year

D. 1 February every year

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Correct Answer: Option D

Explanation:
Since 2017, the Union Budget is presented on 1 February.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Goods and Services Tax' rate on construction of residential property in an affordable housing project is:

A. 12%

B. 18%

C. 1% without ITC

D. 5% without ITC

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Correct Answer: Option C

Explanation:
Affordable housing construction attracts 1% GST without input tax credit.

This question belongs to: Economy GK Economy Set 1

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