WBCS.LIVE practice question

The 'Tobin Tax' is a tax proposed on which of the following?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Luxury Goods
  2. International Currency Transactions
  3. Carbon Emissions
  4. Inherited Property

Correct answer and explanation

Correct answer: International Currency Transactions

Explanation: āœ… Correct Answer: B) International Currency Transactions šŸ“š Explanation: Named after economist James Tobin, the Tobin Tax is a small tax on short-term international capital movements or currency speculations. The goal is to discourage volatile, short-term currency trading and stabilize exchange rates. It is also seen as a potential source of revenue for global development or climate change initiatives.