Deck 10: Economy and Inflation

Question 1

'Stagflation' is a situation where the economy faces

A)Inflation
B)Stagnation
C)Inflation as well as stagnation
D)None of the above

Answer 1

Stagnation

Question 2

The RBI set up in the year

A)1921
B)1935
C)1947
D)1951

Answer 2

1935

Question 3

Which of the following represents the major functions of the central bank

A)Note issuing agency
B)Controller of credit
C)Banker to the government
D)All of the above

Answer 3

All of the above

Question 4

Find the odd man out

A)Bank rate policy
B)Taxation
C)Open market operation
D)Variable reserve ratio

Question 5

Bank rate refers to

A)Discount rate
B)Market rate
C)Rediscount rate
D)None of the above

Question 6

Open market operation influences

A)The reserves of commercial banks
B)The market rate of interest
C)Both A and B
D)None of the above

Question 7

Which of the following is an anti-deflationary monetary policy

A)Purchase of government securities from commercial banks and from the public
B)Sale of government securities from commercial banks and from the public
C)Raising the cash reserve ratio
D)All of the above

Question 8

Let the cash reserve ratio is 12%. Then the value of credit multiplier will be

A)8.0
B)8.3
C)10
D)12

Question 9

Inflation represents:

A)fall in price level
B)increase value of money
C)decrease value of money
D)None

Question 10

Who told Inflation is too much of money chasing too few goods:

A)Coulbourn
B)Keynes
C)Friedman
D)Samuelsson

Question 11

Among the following which is not a feature of inflation?

A)long term process
B)state of disequilibrium
C)dynamic in nature
D)non monetary phenomenon.

Question 12

Deflation means:

A)falling price level
B)rise in price level
C)increase value of money
D)None

Question 13

Only Money Matters is Propounded by:

A)Keynesians
B)Monetarists
C)Classicals
D)Neo-Classicals

Question 14

Sacrifice ratio measures :

A)Output lose
B)profit lose
C)Income lose
D)None

Question 15

When prices of only few commodities rise

A)Sporadic Inflation
B)suppressed inflation
C)open inflation
D)creeping inflation

Question 16

Which is the slowest inflation?

A)Walking inflation
B)running inflation
C)Creeping inflation
D)moderate inflation

Question 17

The rate of inflation in walking inflation is:

A)between 3to 10 %
B)below 3 %
C)More than 10%
D)More than 3%

Question 18

Price rise in every second is referred as

A)Running inflation
B)Galloping inflation
C)Walking inflation
D)Hyper inflation

Question 19

Inflation due to hording

A)Credit inflation
B)Scarcity inflation
C)Profit inflation
D)None

Question 20

Long run Phillips Curve is :

A)Parallel
B)Horizontal
C)Vertical
D)Kinked

Question 21

In business cycle, depression is followed by:

A) Boom
B)Recovery
C)Recession
D)None of the above

Question 22

The Working Group for the Revision of Wholesale Price Index Number headed by :

A)Prof. Abhijit Sen
B)Kelkar
C)Ahluwalia
D)Tarapore

Question 23

The headline inflation in India is measured in:

A)WPI
B)CPI
C)GDP Deflator
D)All

Question 24

The working group in India include in the age:

A)14 to 55
B)15 to 59
C)20 and above
D)25 and above