Banking General Awareness Money and Inflation / पैसा और महंगाई Question Bank

done Inflation Total Questions - 24

• question_answer1)

  What is/are the possible cause of inflation? (i) Growth in population. (ii) Rise in unemployment. (iii) Increasing Urbanization.

  A)
  Only option i is correct. done clear
  B)
  Only option ii is correct. done clear
  C)
  Only option iii is correct. done clear
  D)
  All of these done clear
  E)
  None of these done clear
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• question_answer2)

  What is/are the possible cause of demand-pull inflation? (i) An increase in costs of goods and services. (ii) A reduction in the interest rates leading to lower EMIs. (iii) An increase in government spending.

  A)
  Only option i is correct. done clear
  B)
  Only option i & ii are correct. done clear
  C)
  Only option ii & iii are correct. done clear
  D)
  All of these done clear
  E)
  None of these done clear
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• question_answer3)
              Which of the following is one of the effect of Inflation?
  A)
  Reduction in the purchasing power of money. done clear
  B)
  It reduces the cost of living. done clear
  C)
  It enhances the standard of living. done clear
  D)
  Reduces the price of products. done clear
  E)
  None of these done clear
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• question_answer4)
              The Phillips curve shows the relationship between inflation and _____.
  A)
  Poverty done clear
  B)
  Purchasing power done clear
  C)
  Unemployment done clear
  D)
  Growth domestic product done clear
  E)
  None of these done clear
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• question_answer5)
              Which of the following is a reason for deflation?
  A)
  Surplus budgeting done clear
  B)
  Growth in GDP done clear
  C)
  High interest rates done clear
  D)
  All the above done clear
  E)
  None of these done clear
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• question_answer6)
              Which of the following is an effect of deflation?
  A)
  An increase in the purchasing power of money done clear
  B)
  A decrease in the price of goods and services done clear
  C)
  Decrease in the gross domestic-product of country done clear
  D)
  All the above done clear
  E)
  None of these done clear
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• question_answer7)

  Which of the following measures can be undertaken to control inflation? (i) Control on public expenditure (ii) Control on hoarding and black marketing (iii) Restrictive credit policy

  A)
  Options i & ii is correct done clear
  B)
  Options ii & iii is correct done clear
  C)
  Options i & iii is correct done clear
  D)
  Options i, ii & iii is correct done clear
  E)
  None of these done clear
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• question_answer8)
   

  Which of the following measures can be undertaken to control deflation? (i) Increase in the government spending (ii) Decreasing interest rates (iii) Suspending government employees

  A)
  Options i & ii is correct done clear
  B)
  Options ii & iii is correct done clear
  C)
  Options i & iii is correct done clear
  D)
  Options i, ii & iii is correct done clear
  E)
  None of these done clear
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• question_answer9)

  Which of the following statement is true about wholesale price index? (i) It consist of 697 items in total. (ii) Manufactured item has maximum weightage (iii) Its base year was revised to 2011 -12 from 2004 -05.

  A)
  Options i & ii is correct. done clear
  B)
  Options ii & iii is correct. done clear
  C)
  Options i & iii is correct. done clear
  D)
  Options i, ii & iii is correct. done clear
  E)
  None of these done clear
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• question_answer10)
              Which of the following products/articles holds maximum weightage in WPI?
  A)
  Primary articles done clear
  B)
  Fuel items done clear
  C)
  Manufactured items done clear
  D)
  Equal weightage done clear
  E)
  None of these done clear
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• question_answer11)
  Who among the following benefits the most from' inflation?
  A)
  Creditor done clear
  B)
  Debtor done clear
  C)
  Wage employee done clear
  D)
  All of these done clear
  E)
  None of these done clear
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• question_answer12)
  Compiling and releasing monthly Wholesale Price Indices is done by:
  A)
  The Office of the Economic Adviser (Ministry of Commerce & Industry). done clear
  B)
  Ministry of Statistics and Programme Implementation done clear
  C)
  Central Statistical Office done clear
  D)
  All of these done clear
  E)
  None of these done clear
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• question_answer13)
  What is the most powerful tool used by the Reserve Bank of India to control inflation?
  A)
  Increasing policy rates. done clear
  B)
  Decreasing policy rates. done clear
  C)
  Decreasing government expenditure done clear
  D)
  Increasing the tax structure done clear
  E)
  None of these done clear
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• question_answer14)
  A condition in which both inflation and recession exists is known as:
  A)
  Stagnation done clear
  B)
  Stagflation done clear
  C)
  Walking inflation done clear
  D)
  Deflation done clear
  E)
  None of the above done clear
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• question_answer15)
  Which one of the following is 'most vulnerable' to evil effects of inflation?
  A)
  A salaried employee done clear
  B)
  An agricultural fanners done clear
  C)
  A person who have borrowed money from bank. done clear
  D)
  College student. done clear
  E)
  None of these done clear
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• question_answer16)
              The process to correct inflation is:
  A)
  Stagnation done clear
  B)
  Stagflation done clear
  C)
  Deflation done clear
  D)
  Disinflation done clear
  E)
  None of the above done clear
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• question_answer17)

  Which of the following statement is true regarding Deficit Financing: (1) Deficit financing is a method of meeting government deficits through the creation of new money. (2) The deficit is the gap caused by the excess of government expenditure over its receipts. (3) Deficit financing provides the government resources for the plans. (4) It has been replaces by 'Ways and Means Advances from April 1997.

  A)
  All options except 4 is true done clear
  B)
  All options except [a], (2) & (3) is true done clear
  C)
  All options except 3 is true done clear
  D)
  All options except (2) is true done clear
  E)
  All options are true done clear
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• question_answer18)
  Which of the following is not the stage of inflation?
  A)
  Hyper-Inflation done clear
  B)
  Walking Inflation done clear
  C)
  Depression done clear
  D)
  Creeping Inflation done clear
  E)
  None of these done clear
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• question_answer19)
  A continuous fall in the GDP for two consecutive quarter is defined as:
  A)
  Recession done clear
  B)
  Depreciation done clear
  C)
  Prosperity done clear
  D)
  Recovery done clear
  E)
  None of these done clear
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• question_answer20)
  A phase in the economy characterized by continuous increase in GDP after an era of negative growth is termed as:
  A)
  Recession done clear
  B)
  Depreciation done clear
  C)
  Prosperity done clear
  D)
  Recovery done clear
  E)
  None of these done clear
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• question_answer21)
  Aphase in the economy characterized by continuous fall the in GDP leading to negative growth is termed as:
  A)
  Recession done clear
  B)
  Depreciation done clear
  C)
  Prosperity done clear
  D)
  Recovery done clear
  E)
  None of these done clear
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• question_answer22)
  Which of the following economy has faced hyper-inflation?
  A)
  Japan done clear
  B)
  Venezuela done clear
  C)
  Germany done clear
  D)
  All of these done clear
  E)
  None of these done clear
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• question_answer23)
  In order to negate the evil effects of Inflation one must invest in:
  A)
  Bonds done clear
  B)
  Equity done clear
  C)
  Saving account done clear
  D)
  Current Account done clear
  E)
  None of these done clear
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• question_answer24)
  Which of the following statement is true:
  A)
  Inflation is inversely related to decreasing money supply. done clear
  B)
  Deflation is inversely related to decreasing money supply. done clear
  C)
  Reflation is related to decreasing in money supply. done clear
  D)
  Disinflation is related to increasing in money supply. done clear
  E)
  None of these done clear
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