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. have no effect on the economy

C. benefit other banks

D. trigger a systemic crisis

Answer: Option D

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 'Bretton Woods twins' refer to:

A. IMF and World Bank

B. WTO and UNCTAD

C. ILO and WHO

D. UNESCO and FAO

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Correct Answer: Option A

Explanation:
The IMF and World Bank are known as the Bretton Woods twins.

This question belongs to: Economy GK Economy Set 1

Question #2

The concept of 'Seigniorage' is most closely related to:

A. The real resources obtained by the government through the issue of base money

B. Interest payments on public debt

C. Tax revenue from income tax

D. Revenue from disinvestment

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Correct Answer: Option A

Explanation:
Seigniorage is the purchasing power that the government obtains by issuing base money; it equals the real value of the increase in base money.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Goods and Services Tax' on coal is:

A. 5%

B. 5% with input tax credit

C. 18%

D. 12%

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Correct Answer: Option A

Explanation:
Coal attracts 5% GST.

This question belongs to: Economy GK Economy Set 1

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