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

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Which of the following is a desirable characteristic of money?

A. Unlimited supply

B. Durability, portability, divisibility and limited supply

C. Difficulty in storage

D. Perishability

Answer: Option B

Solution (By JKSSB Mock Tests)

Good money should be durable, portable, divisible, uniform, recognisable and relatively scarce so that it can effectively perform its functions.

This question belongs to: Economy GK Economy Set 1

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Question #1

The term 'core inflation' was coined because it excludes items with:

A. high tax rates

B. high import content

C. high weight in CPI

D. high price volatility such as food and fuel

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Correct Answer: Option D

Explanation:
Core inflation excludes volatile food and fuel prices to reveal underlying inflation.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'trickle-down theory' of development suggests that benefits of growth:

A. remain only with the rich

B. are absent

C. only benefit the government

D. eventually spread to the poor

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Correct Answer: Option D

Explanation:
Trickle-down theory suggests that growth benefits eventually reach the poor.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'systemically important financial institution' is one whose failure could:

A. have no effect on the economy

B. benefit other banks

C. trigger a systemic crisis

D. reduce inflation

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Correct Answer: Option C

Explanation:
A systemically important institution is too big or interconnected to fail without causing systemic risk.

This question belongs to: Economy GK Economy Set 1

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