Which of the following is a feature of the 'Data-Driven Network Effects'? MCQ with Answer and Explanation

Which of the following is a feature of the 'Data-Driven Network Effects'?
A. Network effects that are independent of data
B. Only traditional network effects without data
C. The feedback loop whereby more users generate more data, which improves the service and attracts still more users
D. The absence of any feedback loops
Answer: Option C
Solution (By JKSSB Mock Tests)
Data-driven network effects arise when additional users generate data that improve the quality of the service (e.g., through better recommendations or predictions), which in turn attracts more users, creating a self-reinforcing cycle.

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Practice More Economy Set 1 Questions

Question #1
The 'Agricultural and Processed Food Products Export Development Authority' promotes exports of:
A. agricultural and processed food products
B. petroleum products
C. textiles
D. machinery

Correct Answer: Option A


Explanation:
APEDA promotes exports of agricultural and processed food products.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'UNDP' publishes which report?
A. Human Development Report
B. World Development Report
C. Global Competitiveness Report
D. Global Financial Stability Report

Correct Answer: Option A


Explanation:
UNDP publishes Human Development Report.

This question belongs to: Economy GK Economy Set 1
Question #3
In the context of banking, the 'Net Stable Funding Ratio' under Basel III is designed to:
A. Determine capital adequacy only
B. Measure only short-term liquidity over 30 days
C. Set the repo rate
D. Ensure that banks maintain a stable funding profile over a one-year horizon

Correct Answer: Option D


Explanation:
The Net Stable Funding Ratio (NSFR) requires banks to maintain a stable funding profile in relation to their on- and off-balance-sheet activities over a one-year time horizon.

This question belongs to: Economy GK Economy Set 1