The term 'Repo Rate' is the rate at which: MCQ with Answer and Explanation

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The term 'Repo Rate' is the rate at which:

A. Banks lend to each other in the call market

B. Commercial banks borrow from the RBI against collateral of government securities

C. Government borrows from the public

D. RBI borrows from commercial banks

Answer: Option B

Solution (By JKSSB Mock Tests)

Repo rate is the interest rate at which the RBI lends short-term funds to commercial banks against the collateral of government securities under the Liquidity Adjustment Facility.

This question belongs to: Economy GK Economy Set 1

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The 'International Bank for Reconstruction and Development' is a part of:

A. World Bank Group

B. WTO

C. UNCTAD

D. IMF

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Correct Answer: Option A

Explanation:
IBRD is part of the World Bank Group.

This question belongs to: Economy GK Economy Set 1

Question #2

The primary goal of the Twelfth Five Year Plan was:

A. poverty eradication

B. full employment

C. universal literacy

D. faster, more inclusive and sustainable growth

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Correct Answer: Option D

Explanation:
The Twelfth Five Year Plan aimed at faster, more inclusive and sustainable growth.

This question belongs to: Economy GK Economy Set 1

Question #3

The IS curve shows combinations of income and interest rate where:

A. goods market is in equilibrium

B. labour market is in equilibrium

C. foreign exchange market is in equilibrium

D. money market is in equilibrium

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Correct Answer: Option A

Explanation:
The IS curve shows equilibrium in the goods market.

This question belongs to: Economy GK Economy Set 1

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