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Objective Question Answers On Currency Inflation

[MCQ Set] Currency / Inflation – Indian Economy > GK Q&A [PDF]


Objective Question Answers On Currency Inflation

Multiple Choice Questions on Currency Inflation in Indian Economy for your upcoming competitive examinations like Banking SBI PO, SSC, CGL, MTS, CHSL, Railway Group D, IAS and UPSC.

A set of important objective questions with answers which have previously come in various competitive exams on Currency inflation.

What is the cause of inflation?

A: If money supply increases.

B: If the production rate falls.

C: If money supply increases and production falls.

D: Both money supply and production decreases.

If money supply increases and production rate falls.

Who will get the maximum benefit from inflation?  [IAS 1989]

A: Holder of real assets

B: Saving bank account holders.

C: The business men.

D: Debtors.


Who will suffer most from inflation?

[CPO SI 2003]

A: Creditors

B: Government pensioners.

C: debtors

D: merchants


In which period the inflation in post economic reforms was minimum?

A: 1997-1999

B: 2007-2008

C: 1999-2000

D: 2008-2009


What does the inflation imply?

[Railways 1994]

A: Rise in budget deficit

B: Rise in prices of consumer goods.

C: rise in money supply.

D: Rise in general price index.

Rise in general price index.

When both unemployment and inflation increases, the situation is termed as,-

[CPO AC 2003]

A: Parainflation

B: Hyperinflation

C: stagflation

D: Galloping inflation.


Which factors contributes to an inflationary trend?

A: 10% increase in supply of money in the market.

B: 15% increase in supply of money in the market.

C: 15% decrease in supply of production of industrial goods.

D: 15% increase of price of goods.

15% increase in supply of money in the market.

How the inflation can be checked temporarily?

A: Increase in money supply

B: Decrease in money supply

C: Increase in wages

D: Decrease in Tax

Decrease in money supply.

Which groups are not protected from inflation?

[Railways 1992]

A: Industrial worker

B: Agricultural farmers

C: Government pensioners

D: Saving bank account holders

Agricultural farmers.

What is an essential attribute of inflation?

A: fall in production

B: increase in prices

C: absence of black market

D: Presence of black market.

Increase in prices.

TRY More MCQs: [MCQ Set] Nature of Indian Economy / Planning > GK [PDF]

When high inflation and low economic growth occurred in a period, the period is termed as,-

[RRB 1992]

A: Stagflation

B: Stagnation

C: Reflation

D: Hyperinflation


Which of the following case implies stagflation?

[CDS 1992]

A: Rising budget deficit

B: Recession plus inflation

C: Increase in wages and unemployment

D: galloping inflation

Recession plus inflation.

How inflation can be contained?

A: Surplus budget

B: increasing tax

C: Reduce the public expenditure.

D: All the above options.

All the above options

Aim of economic development fails when deficit financing creates additional paper currency to fill the gap between expenditure and revenue, is known as

[IAS 1990]

A: inflation

B devaluation

C: deflation

D: demonetization


A steady increase in the general level of prices as a result of excessive increase in aggregate demand as compared to aggregate supply is termed as :

A: demand-pull inflation

B: cost-push inflation

C: Stagflation

D: Structural inflation

demand-pull inflation

Which of the following cannot be included among the remedies of inflation?

A: Better capacity utilization

B: by making low bank rate

C: by reducing budget deficit

D: by making high bank rate

by making low bank rate

Barter may be preferable when money losses its value is termed as :

A: hyper-inflation

B: Para-inflation

C: inflation

D: disinflation


The effect of inflation on the tax revenue results in a situation known as :

A: fiscal drag

B: stagflation

C: deflation

D: hyperinflation

Fiscal Drag

What is Cost-Push inflation?

Increasing money supply

B: Increasing indirect tax

C: Population increase

D: expenditure increase unnecessarily.

Increase indirect tax.

What type of inflation is experiencing in the country at present?

A: Cost-Push inflation

B: Hyper-inflation

C: Stagflation

D: Galloping Inflation

Cost-Push Inflation

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Read More : MCQ on Fiscal System – Indian economy > GK Question Answer [PDF]


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