The term 'Non-Performing Asset' (NPA) in banking refers to: MCQ with Answer and Explanation

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The term 'Non-Performing Asset' (NPA) in banking refers to:

A. A loan on which interest or principal is overdue for a specified period

B. Government securities held by banks

C. An asset that generates income regularly

D. Cash reserves of the bank

Answer: Option A

Solution (By JKSSB Mock Tests)

An NPA is a loan or advance where interest or principal remains overdue for a period of more than 90 days (as per RBI norms for term loans).

This question belongs to: Economy GK Economy Set 1

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The Gini coefficient value of zero indicates:

A. no unemployment

B. perfect equality of income distribution

C. high poverty

D. perfect inequality

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Correct Answer: Option B

Explanation:
A Gini coefficient of zero indicates perfect equality in income distribution.

This question belongs to: Economy GK Economy Set 1

Question #2

According to the law of diminishing marginal utility, as a consumer increases consumption of a commodity, the marginal utility derived from each additional unit:

A. remains constant

B. eventually declines

C. first declines then increases

D. increases continuously

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Correct Answer: Option B

Explanation:
The law of diminishing marginal utility states that as more units are consumed, the additional satisfaction from each extra unit eventually decreases.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Goods and Services Tax' on unbranded cereals is:

A. 12%

B. 18%

C. 0%

D. 5%

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Correct Answer: Option C

Explanation:
Unbranded cereals are exempt from GST.

This question belongs to: Economy GK Economy Set 1

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