Currency and Inflation Set 2

Q1 | Who among the following are not protected against inflation.? [Railways 1992]

Q2 | An essential attribute of inflation is:

Q3 | The best means of saving during inflation is to keep:

Q4 | The period of high inflation and low economic growth is termed as: [RRB 1992]

Q5 | Stagflation implies a case of: [CDS 1992]

Q6 | Inflation can be contained by:

Q7 | Deficit financing creates additional paper currency to fill the gap between expenditureand revenue. This device aims at economic development but if it fails, it generates : [IFS 1990]

Q8 | 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 : [CDS 1999]

Q9 | A high rate of inflation tends to worsen balance of payments because:

Q10 | The effect of inflation on tax revenue results in a situation known as :

Q11 | The sum of which of the following constitutes Broad Money in India? [IAS 1997] 1. Currency with the public 2. Demand deposits with banks 3. Time deposits with banks 4. Other deposits with RBI Choose the correct answer using the codes given below:

Q12 | Rising prices lead to all but one of the following:

Q13 | Consider the following statements about Wholesale Price Index (WPI) : 1. It captures the price movement extensively and is, therefore, taken as an indicator of inflation. 2. The office of the Economic adviser (OEA) is entrusted with the function of compilation and publication of the weekly wholesale price index number in India. Which of the statements given above is/are correct? [CDS 2009]

Q14 | In the last one decade, which one among the following sectors has attracted the highestForeign Direct Investment inflows into India? [IAS 2004]

Q15 | Under the Constitution, the power to raise and disburse public funds:

Q16 | There are three major groups of commodities in the Wholesale Price Index. These are: 1. primary articles 2. fuel, power, light and lubricants 3. manufactured products 4. food articles and industrial raw materials

Q17 | Rupee was devalued by what percent in July 1991 ? [MP PCS 1990]

Q18 | When was decimal coinage introduced in India? [CDS 2005]

Q19 | Amongst the currency quotes USD/JPY, USD/Euro and USD/CAD, which one of thefollowing is referred as the base currency for quotes? [Punjab & Sindh Bank 2011]

Q20 | Which of the following is/are treated as artificial currency? [IAS 2010]

Q21 | Which of the following measures should be taken when an economy is going throughinflationary pressures? 1. The direct taxes should be increased. 2. The interest rate should be reduced. 3. The public spending should be increased Select the correct answer using the code given below: [CDS 2012] Code:

Q22 | The terms of economics, the recession occurring two times with a small gap in betweenis known as [Bank of India PO 2010]

Q23 | M1 includes:

Q24 | M3 includes:

Q25 | Consider the following statements: Full convertibility of the rupee may mean: [IAS 2002] 1. its free float with other international currencies. 2. its direct exchange with any other international currency at any prescribed place inside and outside the country. 3. it acts just like any other international currency. Which of these statements are correct?