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. Wide range of financial instruments

B. Limited participation of institutions

C. High transaction costs

D. Low liquidity

Answer: Option A

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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Practice More Economy Set 1 Questions

Question #1

Say's law of markets states that:

A. demand creates its own supply

B. saving is always equal to investment

C. government must manage demand

D. supply creates its own demand

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Correct Answer: Option D

Explanation:
Say's law states that supply creates its own demand.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Vote on Account' is used to:

A. present the full budget for the year

B. obtain Parliament's approval for expenditure for part of the financial year

C. reduce fiscal deficit

D. impose new taxes

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Correct Answer: Option B

Explanation:
Vote on Account authorizes government expenditure for a limited period, usually before elections.

This question belongs to: Economy GK Economy Set 1

Question #3

In the context of demand, a Giffen good is one for which:

A. Demand is independent of price

B. Demand is perfectly elastic

C. Demand increases as price increases

D. Demand decreases as price increases

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Correct Answer: Option C

Explanation:
A Giffen good is an inferior good for which the income effect outweighs the substitution effect, leading to an upward-sloping demand curve (demand rises when price rises).

This question belongs to: Economy GK Economy Set 1

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