Which of the following is a feature of the Indian monetary system? MCQ with Answer and Explanation

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Which of the following is a feature of the Indian monetary system?

A. Managed floating exchange rate with inflation targeting

B. Complete free floating without RBI role

C. Fixed exchange rate without any intervention

D. Gold standard

Answer: Option A

Solution (By JKSSB Mock Tests)

India follows a managed floating exchange rate regime and has adopted a flexible inflation targeting framework for monetary policy.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

When marginal product is zero, total product is:

A. maximum

B. minimum

C. equal to average product

D. negative

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Correct Answer: Option A

Explanation:
Total product is maximum when marginal product is zero.

This question belongs to: Economy GK Economy Set 1

Question #2

In the context of behavioural public finance, 'Tax Salience' refers to:

A. Only the statutory tax rate

B. The degree to which a tax is noticed and taken into account by decision-makers

C. Only the administrative cost of the tax

D. Only the progressivity of the tax

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Correct Answer: Option B

Explanation:
Tax salience measures how visible or noticeable a tax is to the agents who pay it; less salient taxes tend to produce smaller behavioural responses than more salient ones of equal magnitude.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Goods and Services Tax' on event management services is:

A. 28%

B. 12%

C. 18%

D. 5%

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Correct Answer: Option C

Explanation:
Event management services attract 18% GST.

This question belongs to: Economy GK Economy Set 1

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