The 'Reverse repo rate' is the rate at which RBI: MCQ with Answer and Explanation

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The 'Reverse repo rate' is the rate at which RBI:

A. lends to the government

B. borrows from banks against government securities

C. lends to banks

D. rediscounts bills

Answer: Option B

Solution (By JKSSB Mock Tests)

Reverse repo is the rate at which RBI borrows from banks against government securities.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Dutch disease' term was coined after the discovery of natural gas in:

A. Netherlands

B. Australia

C. Norway

D. United Kingdom

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Correct Answer: Option A

Explanation:
Dutch disease was named after the effects of natural gas discoveries in the Netherlands.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'circular flow of income' in a two-sector economy includes:

A. households and firms

B. only households

C. only firms

D. government and foreign sector

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Correct Answer: Option A

Explanation:
A two-sector economy includes households and firms.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a non-debt capital receipt?

A. Borrowings from the market

B. External loans

C. Treasury bills issued

D. Disinvestment proceeds

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Correct Answer: Option D

Explanation:
Disinvestment proceeds are non-debt capital receipts as they involve sale of assets and do not create a future repayment liability.

This question belongs to: Economy GK Economy Set 1

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