The yield on a bond and its price have an inverse relationship. If market interest rates rise, the price of an existing bond: MCQ with Answer and Explanation

Question

The yield on a bond and its price have an inverse relationship. If market interest rates rise, the price of an existing bond:

A. falls

B. remains unchanged

C. becomes zero

D. rises

Answer: Option A

Solution (By JKSSB Mock Tests)

When market interest rates rise, existing bond prices fall because their fixed coupon becomes less attractive.

This question belongs to: Economy GK Economy Set 1

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Question #1

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The 'Goods and Services Tax' rate on newspapers is:

A. 5%

B. 18%

C. 0%

D. 12%

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Correct Answer: Option C

Explanation:
Newspapers are exempt from GST.

This question belongs to: Economy GK Economy Set 1

Question #2

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Bharat Broadband Network Limited is associated with:

A. road construction

B. port development

C. rural water supply

D. National Optical Fibre Network

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Correct Answer: Option D

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

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The term inclusive growth refers to economic growth that:

A. ignores employment

B. focuses only on manufacturing

C. benefits all sections of society and reduces inequality

D. benefits only the rich

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Correct Answer: Option C

Explanation:
Inclusive growth ensures that the benefits of growth are widely shared and inequality is reduced.

This question belongs to: Economy GK Economy Set 1

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