Which of the following is NOT a characteristic of money? MCQ with Answer and Explanation

Which of the following is NOT a characteristic of money?
A. Divisibility
B. Portability
C. Durability
D. Perishability as a desirable feature
Answer: Option D
Solution (By JKSSB Mock Tests)
Desirable characteristics of money include durability, portability, divisibility, uniformity and limited supply. Perishability is undesirable as money should retain value over time.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is a characteristic of the 'Risk-Sharing' benefits of international financial integration?
A. Risk-sharing is irrelevant for welfare
B. Integration always increases consumption volatility
C. Only closed economies can smooth consumption
D. Countries can smooth consumption in the face of idiosyncratic shocks by trading claims on future output

Correct Answer: Option D


Explanation:
International risk-sharing allows countries to diversify away country-specific income shocks by holding foreign assets, thereby reducing the volatility of national consumption relative to national output.

This question belongs to: Economy GK Economy Set 1
Question #2
The term 'Non-Performing Asset' (NPA) in banking refers to:
A. Cash reserves of the bank
B. Government securities held by banks
C. An asset that generates income regularly
D. A loan on which interest or principal is overdue for a specified period

Correct Answer: Option D


Explanation:
An NPA is a loan or advance where interest or principal remains overdue for a period of more than 90 days (as per RBI norms for term loans).

This question belongs to: Economy GK Economy Set 1
Question #3
The SARFAESI Act, 2002 primarily deals with:
A. microfinance regulation
B. bank nationalization
C. payment systems
D. recovery of non-performing assets and securitization

Correct Answer: Option D


Explanation:
SARFAESI Act enables banks and financial institutions to recover non-performing assets.

This question belongs to: Economy GK Economy Set 1