The term 'Non-Performing Asset' in Indian banking is defined as a loan where: MCQ with Answer and Explanation

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The term 'Non-Performing Asset' in Indian banking is defined as a loan where:

A. Interest or principal is overdue for more than 90 days

B. Interest is paid regularly

C. The asset generates continuous income

D. The borrower has excess collateral

Answer: Option A

Solution (By JKSSB Mock Tests)

As per RBI guidelines, a term loan is classified as NPA if interest or instalment of principal remains overdue for a period of more than 90 days.

This question belongs to: Economy GK Economy Set 1

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Question #1

The concept of 'Pre-distribution' in policy debates refers to:

A. Policies that shape the distribution of market incomes before taxes and transfers, such as education, minimum wages and competition policy

B. Only monetary policy

C. Only redistribution through taxes and transfers

D. Only post-tax outcomes

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Correct Answer: Option A

Explanation:
Pre-distribution emphasises interventions that affect the underlying distribution of market incomes—through skills, bargaining power, market structure and institutions—rather than relying solely on subsequent fiscal redistribution.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following would most likely cause the rupee to appreciate?

A. Increase in imports

B. Higher domestic inflation

C. Lower foreign investment

D. Large capital inflows into India

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Correct Answer: Option D

Explanation:
Large capital inflows increase demand for rupee, causing appreciation.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'World Development Report' is published by:

A. World Bank

B. WTO

C. UNCTAD

D. IMF

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Correct Answer: Option A

Explanation:
The World Development Report is published by the World Bank.

This question belongs to: Economy GK Economy Set 1

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