Which of the following is a characteristic of a developed financial market? MCQ with Answer and Explanation

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Which of the following is a characteristic of a developed financial market?

A. Low liquidity

B. High transaction costs

C. Limited participation of institutions

D. Wide range of financial instruments

Answer: Option D

Solution (By JKSSB Mock Tests)

Developed financial markets offer a wide range of instruments, high liquidity, low transaction costs and broad institutional participation.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'African Development Bank' is headquartered in:

A. Johannesburg

B. Nairobi

C. Abidjan

D. Cairo

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Correct Answer: Option C

Explanation:
The African Development Bank is headquartered in Abidjan, Côte d'Ivoire.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Net National Product at factor cost' equals GNP at factor cost minus:

A. depreciation

B. net factor income from abroad

C. indirect taxes

D. subsidies

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Correct Answer: Option A

Explanation:
NNP at factor cost = GNP at factor cost - depreciation.

This question belongs to: Economy GK Economy Set 1

Question #3

In the context of cost-benefit analysis, a project is considered viable if:

A. Present value of costs exceeds present value of benefits

B. Present value of benefits exceeds present value of costs

C. Only private benefits are considered

D. Only financial costs are considered without social costs

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Correct Answer: Option B

Explanation:
In cost-benefit analysis, a project is economically viable if the present value of its benefits exceeds the present value of its costs (Net Present Value > 0).

This question belongs to: Economy GK Economy Set 1

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