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

Which of the following is a characteristic of a developed money market?
A. Presence of a wide range of instruments and high liquidity
B. Only long-term government securities
C. High transaction costs and low participation
D. Absence of short-term instruments
Answer: Option A
Solution (By JKSSB Mock Tests)
A developed money market features a variety of short-term instruments, high liquidity, low transaction costs and active participation by financial institutions.

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Practice More Economy Set 1 Questions

Question #1
The 'substitution effect' of a price change always leads consumers to buy:
A. more of the good whose relative price has fallen
B. only inferior goods
C. the same amount
D. less of the good whose relative price has fallen

Correct Answer: Option A


Explanation:
The substitution effect always causes consumers to buy more of the relatively cheaper good.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Goods and Services Tax' on charitable activities is:
A. exempt for specified charitable activities
B. 18%
C. 5%
D. 0%

Correct Answer: Option A


Explanation:
Specified charitable activities are exempt from GST.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Index of Eight Core Industries' is released by:
A. Ministry of Finance
B. RBI
C. NITI Aayog
D. Ministry of Commerce and Industry

Correct Answer: Option D


Explanation:
The Index of Eight Core Industries is released by the Ministry of Commerce and Industry.

This question belongs to: Economy GK Economy Set 1