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Currency and Inflation - Objective Type Questions with Answers | General Awareness on Economics

Questions
11 Out of the various ways of the financing government’s investment expenditure, which one of the following is a method of inflation control ?
A Foreign aid
B Deficit financing
C Taxation
D Public borrowing

Answer: Option [C]
12 ‘Devaluation’ means :
A reduction in the value of a currency vis-a-vis major internationally traded currencies
B permitting the currency to seek its worth in the international market
C fixing the value of the currency in conjunction with the movement in the value of a basket of pre-determined currencies
D fixing the value of currency in multilateral consultation with the IMF, the World Bank and major trading partners

Answer: Option [A]
13 What do you mean by convertibility of the rupee ?
A being able to convert rupee into us dollars
B freely permitting the conversion of rupee to other major currencies and vice versa
C allowing the value of rupee to be fixed by market forces
D developing a international market for currencies in india

Answer: Option [B]
14 Black money implies :
A counterfeit currency
B money earned from chit funds
C money earned through underhand deals
D income on which payment of tax is usually evaded

Answer: Option [D]
15 In the one decade, which one among the following sectors has attracted the highest Foreign Direct Investment inflows into India ?
A Chemicals other than fertilizers
B Services sector
C Food processing
D Telecommunication

Answer: Option [D]
16 When was decimal coinage introduced in India ?
A 15 August, 1947
B 26 January, 1952
C 1 April, 1957
D 31 December, 1963

Answer: Option [C]
17 USD/JPY, USD/EURO and USD/CAD are the currency pairs in terms of foreign exchange trading. Amongst them which one of the following is referred as the base currency for quotes ?
A USD
B JPY
C Euro
D CAD

Answer: Option [A]
18 Which of the following is/are treated as artificial currency ?
A ADR
B GDR
C SDR
D Both ADR and SDR

Answer: Option [C]
19 In terms of economics, the small gap between the first recession and second recession is known as :
A Double Deflation
B Deflation
C Deep Recession
D Double Dip Recession

Answer: Option [C]
20 Cheap Money implies :
A low rate of inerest
B low level of savings
C low level of income
D excess of bank money

Answer: Option [A]

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