The term 'Soft Loan' typically refers to: MCQ with Answer and Explanation

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The term 'Soft Loan' typically refers to:

A. Only short-term trade credit

B. Loans with commercial interest rates

C. Loans with concessional interest rates and longer repayment periods

D. Only domestic commercial bank loans

Answer: Option C

Solution (By JKSSB Mock Tests)

Soft loans are provided by multilateral agencies or governments at below-market interest rates with longer maturities and grace periods, often for development purposes.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'systemically important financial institution' is one whose failure could:

A. reduce inflation

B. have no effect on the economy

C. trigger a systemic crisis

D. benefit other banks

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Correct Answer: Option C

Explanation:
A systemically important institution is too big or interconnected to fail without causing systemic risk.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a characteristic of a dualistic economy?

A. Uniform technology across sectors

B. Absence of informal sector

C. Coexistence of modern and traditional sectors

D. Only agricultural activities

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Correct Answer: Option C

Explanation:
Dualism refers to the coexistence of a modern, capital-intensive sector alongside a traditional, labour-intensive sector within the same economy.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Goods and Services Tax' is a:

A. direct tax

B. capital gains tax

C. wealth tax

D. indirect tax

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Correct Answer: Option D

Explanation:
GST is an indirect tax on goods and services.

This question belongs to: Economy GK Economy Set 1

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