Which of the following is a feature of the Classical theory of interest? MCQ with Answer and Explanation

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Which of the following is a feature of the Classical theory of interest?

A. Liquidity preference determines interest

B. Interest is determined by demand and supply of real savings and investment

C. Interest is a monetary phenomenon only

D. Interest is determined by demand and supply of money

Answer: Option B

Solution (By JKSSB Mock Tests)

In classical theory, the rate of interest is a real phenomenon determined by the demand for investment and the supply of savings.

This question belongs to: Economy GK Economy Set 1

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The 'Input Tax Credit' under GST allows a taxpayer to:

A. avoid filing returns

B. deduct tax paid on inputs from output tax liability

C. refund all taxes paid

D. pay tax only on exports

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Correct Answer: Option B

Explanation:
Input Tax Credit permits deduction of input tax from output tax liability to avoid cascading.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Special Drawing Right' value is calculated based on a basket of currencies that includes which five currencies?

A. US dollar, euro, yen, pound, rupee

B. US dollar, euro, yen, pound, yuan

C. US dollar, euro, franc, pound, yuan

D. US dollar, euro, rupee, pound, yen

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Correct Answer: Option B

Explanation:
The SDR basket comprises US dollar, euro, Chinese yuan, Japanese yen and British pound.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'General Agreement on Trade in Services' came into force in which year?

A. 1994

B. 1995

C. 2000

D. 2005

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Correct Answer: Option B

Explanation:
GATS came into force in 1995 as part of WTO agreements.

This question belongs to: Economy GK Economy Set 1

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