The term 'High-Powered Money' is also known as: MCQ with Answer and Explanation

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The term 'High-Powered Money' is also known as:

A. Narrow money only

B. Time deposits

C. Broad money

D. Reserve money or monetary base

Answer: Option D

Solution (By JKSSB Mock Tests)

High-powered money (reserve money or monetary base) consists of currency in circulation and the reserves of the banking system with the central bank.

This question belongs to: Economy GK Economy Set 1

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Question #1

Which of the following is a characteristic of the 'Sudden Stop' literature?

A. Capital flows never reverse

B. Only trade shocks matter

C. Abrupt reversals of capital inflows can cause large real depreciations, output collapses and financial crises

D. Capital-flow reversals are always gradual and benign

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Correct Answer: Option C

Explanation:
Sudden-stop models analyse the macroeconomic and financial consequences of large and abrupt reversals in capital inflows, which often trigger currency crises, credit contractions and sharp recessions.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on wind turbines is:

A. 5%

B. 18%

C. 12%

D. 28%

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Correct Answer: Option A

Explanation:
Wind turbines attract 5% GST.

This question belongs to: Economy GK Economy Set 1

Question #3

A consumer consuming a single commodity attains equilibrium when:

A. TU is rising

B. MU of the commodity is zero

C. MUx divided by Px equals marginal utility of money

D. Px is greater than MUx

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Correct Answer: Option C

Explanation:
For one commodity, consumer equilibrium occurs when MUx/Px equals the marginal utility of money.

This question belongs to: Economy GK Economy Set 1

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