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. reduce inflation

B. benefit other banks

C. trigger a systemic crisis

D. have no effect on the economy

Answer: Option C

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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Question #1

The 'Agreement on Agriculture' under WTO came into force in which year?

A. 2000

B. 1998

C. 1994

D. 1995

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Correct Answer: Option D

Explanation:
The Agreement on Agriculture came into force in 1995.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is NOT a type of market failure?

A. Asymmetric information

B. Externalities

C. Perfect competition

D. Public goods

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Correct Answer: Option C

Explanation:
Market failure occurs when free markets fail to allocate resources efficiently. Causes include externalities, public goods, asymmetric information and monopoly power. Perfect competition is an ideal, not a failure.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Pradhan Mantri Poshan Shakti Nirman' is a programme for:

A. hot cooked meals in schools

B. rural housing

C. education loans

D. skill development

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Correct Answer: Option A

Explanation:
PM POSHAN provides hot cooked meals in government and aided schools.

This question belongs to: Economy GK Economy Set 1

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