The 'systemically important financial institution' is one whose failure could: MCQ with Answer and Explanation

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The 'systemically important financial institution' is one whose failure could:

A. have no effect on the economy

B. trigger a systemic crisis

C. benefit other banks

D. reduce inflation

Answer: Option B

Solution (By JKSSB Mock Tests)

A systemically important institution is too big or interconnected to fail without causing systemic risk.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

Which of the following is a characteristic of a closed economy?

A. Membership of WTO only

B. High volume of exports and imports

C. No foreign trade

D. Free capital flows

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Correct Answer: Option C

Explanation:
A closed economy does not engage in international trade or capital flows. It is self-sufficient and isolated from the rest of the world.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'GST Network' was incorporated in which year?

A. 2016

B. 2014

C. 2013

D. 2012

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Correct Answer: Option C

Explanation:
GSTN was incorporated in 2013.

This question belongs to: Economy GK Economy Set 1

Question #3

Advance tax is income tax that is:

A. paid after the end of the financial year

B. refunded by the government

C. paid in advance in instalments during the financial year

D. paid only by companies

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Correct Answer: Option C

Explanation:
Advance tax is paid in advance in instalments during the financial year instead of a lump sum at the end.

This question belongs to: Economy GK Economy Set 1

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