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

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

A. Banks lend to RBI

B. Government borrows from banks

C. Banks borrow from the public

D. RBI lends to banks

Answer: Option A

Solution (By JKSSB Mock Tests)

Reverse Repo Rate is the rate at which the RBI borrows money from commercial banks, absorbing excess liquidity from the system.

This question belongs to: Economy GK Economy Set 1

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Question #1

Tax revenue of the central government is classified under:

A. revenue receipts

B. non-tax revenue

C. borrowings

D. capital receipts

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Correct Answer: Option A

Explanation:
Tax revenue is a revenue receipt.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a characteristic of the 'Balanced Growth' path in the Solow model?

A. Capital, output and effective labour all grow at the same rate

B. Per capita variables grow at different rates

C. Only capital grows while output is constant

D. There is no steady state

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Correct Answer: Option A

Explanation:
On the balanced-growth path of the Solow model, aggregate capital, output and effective labour grow at the exogenous rate of technological progress plus population growth, so that capital and output per effective worker are constant.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Food and Agriculture Organization' headquarters is in:

A. Paris

B. Geneva

C. Rome

D. New York

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Correct Answer: Option C

Explanation:
FAO headquarters is in Rome.

This question belongs to: Economy GK Economy Set 1

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