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

The term 'Soft Loan' typically refers to:
A. Only domestic commercial bank loans
B. Loans with concessional interest rates and longer repayment periods
C. Loans with commercial interest rates
D. Only short-term trade credit
Answer: Option B
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.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is a feature of the 'Carbon Border Adjustment Mechanism' proposals?
A. A levy on imports based on their embedded carbon content to prevent carbon leakage and protect domestic climate policies
B. Only domestic carbon taxes without border measures
C. Only export subsidies for green goods
D. A complete ban on all imports

Correct Answer: Option A


Explanation:
A carbon border adjustment mechanism imposes a charge on imported goods equivalent to the domestic carbon price, thereby reducing the risk of carbon leakage and maintaining the competitiveness of domestic producers.

This question belongs to: Economy GK Economy Set 1
Question #2
Bharat Broadband Network Limited is associated with:
A. National Optical Fibre Network
B. port development
C. rural water supply
D. road construction

Correct Answer: Option A


Explanation:
Bharat Broadband Network Limited implements the National Optical Fibre Network for broadband connectivity.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is NOT a determinant of the supply of a commodity?
A. Cost of production
B. Price of the commodity
C. Tastes and preferences of consumers
D. Technology

Correct Answer: Option C


Explanation:
Tastes and preferences of consumers affect demand, not supply. Supply is determined by price, cost of production, technology, prices of related goods, and government policies.

This question belongs to: Economy GK Economy Set 1