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Currency and Inflation - General Awareness Multiple Choice Questions and Answers

31 A very rapid or out of control growth in prices in which money loses its value to the point where ever barter may be preferable is known as:
A Inflation
B Deflation
C Disinflation
D Hyper- inflation

Answer: Option [D]
32 Which of the following can contain Inflation ?
A Surplus Budget
B Increase in taxation
C Reduction in public expenditure
D All the above

Answer: Option [D]
33 The effect of inflation on tax revenue results in a situation known as:
A Reflation
B Stagflation
C Fiscaldrag
D None of the above

Answer: Option [C]
34 Which of the following accounts for Cost-Push Inflation ?
A Increase in population
B Increase in non-plan expenditure
C Increase in money supply
D Increase in indirect taxation like higher VAT, excise duties etc.

Answer: Option [D]
35 Whose signature is found in one-rupee currency note ?
A Finance Secretary of India
B Finance Minister of India
C President of India
D Prime Minister of India

Answer: Option [A]
36 Broad money in India is:
A M1
B M2
C M3
D M4

Answer: Option [C]
37 Increasing prices related to:
A Generation of black money
B Adverse effect on speculation
C Promotion of inequalities
D Adverse effect on balance of payments

Answer: Option [B]
38 Immediately prior to change in the measure of Food Inflation, which of the following indexes was being used for measuring it ?
A Wholesale Price Index
B Export price index
C Consumer Price Index
D Interest Rates offered by banks on deposits

Answer: Option [A]
39 M1 includes:
A Demand deposit with bank
B Currency with public
C Other deposits with RBI
D All of the above

Answer: Option [D]
40 Monetary policy is regulated by:
A Money leaders
B Private entrepreneurs
C Central Bank
D Microfinance organizations

Answer: Option [C]


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