Small Quiz

1

QUESTION 1

Inflation  is the  state in which

The  value of money decreases 

The value of money increases

 The value of money increases first and then decreases

All of these

None of these

QUESTION 2

How  inflation  affects  the price of the commodities ?

Price of  the commodities decrease

price of the commodities increase

No effect

First  the price decreases later on increases

All  of  these

QUESTION 3

 When  there  is  high  inflation  in  the  economy  how will it  affect  the  supply  of  money  in  the  economy ?

No effect  on  the  money  supply

Supply  of  money  decreases

Supply  of  money  increses

All of  these

None of  these

QUESTION 4

Which  of  the  following  class  will not be  negatively  affected by  the  higher inflation ?

The consumer class

The debtor class

Pensioner class

Business  class

All of  these

QUESTION 5

What  is  a stagflation?

A  situation  in  which  the  economy  experiences  recession

A situation  in  which  the  economy have  inflation  and  recession  altogether.

An  economy  where  unemployment  is  high.

Both 2 and 3

None  of these

QUESTION 6

Which  of  the  following  concept  is  just  opposite  to deflation ?

Stagflation

Inflation

Recession

Disinflation

All  of  thse

QUESTION 7

Which  of  the  following  measure  is  adopted  to reduce  inflation ?

Reduction  in  bank  rate

Reduction  in  repo  rate

Increase  in  government  expenditure

Cuts  in  government  exprnditure

All  of  these

QUESTION 8

What  is  the  base  year  for  measuring  inflation  at  Wholesale Price Index in  India?

2004-05

2001-02

2011-12

2014-15

All  of  these

QUESTION 9

Which out of the following  is phenomenon that leads to Cost-Push Inflation?

It is a situation when aggregate demand in an economy outpaces aggregate supply

It is a situation of persistent  rise in inflation along with dip in growth and increase in unemployment 

It is a situation caused by an increase in prices  of  inputs like labour,rawmaterials etc.

it is a situation when a nation experiences very high and accelerating inflation.

All  of  these

QUESTION 10

Which  out  of  the  following  is  phenomenon  that  leads to  Demand-Pull  Inflation?

It  is a situatiion when aggregate demand in an economy outpaces aggregate  supply

It is a situation  of  persistent  rise  in  inflation  along  with dip in growth and increase in unemployment.

It  is  a  situation  caused  by  an  increase  in prices of inputs like labour raw materials etc.

It  is  a situation  when  a nation experience very high and accelerating inflation.

All  of  these.