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Currency and Inflation - General Awareness Multiple Choice Questions and Answers | Page-5

Questions
41 In which year the decimal system of currency introduced in India ?
A 1948
B 1950
C 1955
D 1957

Answer: Option [D]
42 Which of the following is not a remedy of Inflation ?
A Lowering bank rate
B Reducing budgetary deficit
C Better capacity utilization
D An efficient public distribution system

Answer: Option [A]
43 The Indian Rupee is fully convertible ?
I. In respect of Current Account of Balance of Payments
II. In respect of Capital Account of Balance of Payments
III. Into Gold

Which of these statements is/are correct ?

A I only
B III only
C I and II only
D None of the above

Answer: Option [A]
44 Devaluation of currency by a country is meant to lead to:
I. Expansion of import trade
II. Promotion of import substitution
III. Expansion of export trade
A I only
B II and III only
C I and II only
D All of the above

Answer: Option [B]
45 Hard Currency is defined as currency:
A Which is used in times of war
B Which can hardly be used for international transaction
C Traded in foreign exchange market for which demands is persistently relative to the supply
D None of these

Answer: Option [C]

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