Indian Economy - Currency / Inflation

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Question - 1

India has experienced persistent and high food inflation in the recent past. What could be the reasons?

1.As a consequence of increasing incomes, the consumption pattern of the people have undergone a significant change.

2.The food supply chain has structural constraints.

3.Due to gradual switch over to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30%.

Which of the statements given above is/are correct?

  • A 1 and 2
  • B 1 and 3
  • C 2 and 3
  • D Only 2

Question - 2

The cause of influence is:

  • A increase in money supply 
  • B fall in production
  • C increase in money supply and fall in production
  • D decrease in money supply and fall in production

Question - 3

Who among the following is most benefited from inflation?

  • A Government pensioners
  • B Creditors
  • C Savings Bank Account holders
  • D Debtors

Question - 4

Which of the following groups suffer the most from inflation?

  • A Debtors
  • B Creditors
  • C Business class
  • D Holders of real assets

Question - 5

MInimum inflation in post economic reform was in:

  • A 1999-2000
  • B 2000-01
  • C 2001-02
  • D 2002-03

Question - 6

Inflation implies:

  • A rise in budget deficit
  • B rise in money supply
  • C rise in general price index
  • D rise in prices of consumer goods

Question - 7

The situation with increasing unemployment and inflation is termed as:

  • A hyperinflation
  • B galloping inflation
  • C Stagflation
  • D reflation

Question - 8

Which of the following factors contributes to an inflationary trend?

  • A 15% fall in production of industrial goods.
  • B 15% increase in prices of agricultural products
  • C 15% increase in supply of money in the market 
  • D none of these

Question - 9

Which of the following can be used for checking inflation temporarily?

  • A Increase in wages
  • B Decrease in money supply 
  • C Decrease in taxes
  • D None of the above

Question - 10

Who among the following are not protected against inflation?

  • A Salaried class
  • B Industrial workers
  • C Pensioners
  • D Agricultural farmers