This quiz works best with JavaScript enabled. Home > General Knowledge > Indian Economy > Basics > Currency And Inflation – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Currency And Inflation Quiz 3 (28 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Who among the following are not protected against inflation.? [Railways 1992] A) Agricultural farmers. B) Industrial workers. C) Salaried class. D) Pensioners. Show Answer Correct Answer: A) Agricultural farmers. 2. Banks provide a higher rater of interest on which one of the following accounts? A) Fixed deposits for long periods. B) Saving account. C) Current account. D) Fixed deposits for very short periods. Show Answer Correct Answer: A) Fixed deposits for long periods. 3. More money purchasing less goods and services means A) Deflation. B) Inflation. C) Stagflation. D) None of these. Show Answer Correct Answer: B) Inflation. 4. As per the FSR, on some days the overnight rates breached the repo rate, this was most likely due to: A) Day-to-day movements in government cash balances. B) Increase in system liquidity. C) Increase in funds available at banks. D) None of the above. Show Answer Correct Answer: A) Day-to-day movements in government cash balances. 5. As per the latest released FSR under India's G20 presidency, one of the priorities is to develop a framework for global regulation for cryptos. One of the possibility that the report talks about is: A) Prohibition, of unbacked crypto assets, stablecoins and DeFi. B) Limited use of unbacked crypto assets, stablecoins and DeFi. C) Adoption of unbacked crypto assets, stablecoins and DeFi. D) Bank adoption of unbacked crypto assets, stablecoins and DeFi. Show Answer Correct Answer: A) Prohibition, of unbacked crypto assets, stablecoins and DeFi. 6. The special paper required for printing of currency notes by the Security Presses In the country is manufactured at : A) Kolkata. B) Hoshangabad. C) Hyderabad. D) Dewas. Show Answer Correct Answer: B) Hoshangabad. 7. In the last one decade, which one among the following sectors has attracted the highest Foreign Direct Investment inflows into India? [IAS 2004] A) Services sector. B) Telecommunication. C) Chemicals other than fertilizers. D) Food processing. Show Answer Correct Answer: B) Telecommunication. 8. Rising rates mainly result in ..... for banks investment book. A) MTM gain. B) MTM loss. C) No impact. D) None of the above. Show Answer Correct Answer: B) MTM loss. 9. Which of the following Mahatma Gandhi series of currency notes issued by the RBI has "ecology" depicted on it? [SSC Graduate 2003] A) Rs. 100. B) Rs. 50. C) Rs. 5. D) Rs. 500. Show Answer Correct Answer: A) Rs. 100. 10. The ..... legalises the use of rupee as a medium of payment that cannot be refused in settling transactions in India. A) Law. B) Prime Minister. C) Government. D) Court. Show Answer Correct Answer: A) Law. 11. In ..... inflation prices rise about 2% annually. A) Hyper. B) Walking. C) Creeping. D) Running. Show Answer Correct Answer: C) Creeping. 12. Rising prices lead to all but one of the following: A) Adverse effect on speculation. B) Adverse effect on balance of payments. C) Promotion of inequalities. D) Generation of black money. Show Answer Correct Answer: A) Adverse effect on speculation. 13. Which of the following Mahatma Gandhi series of currency notes issued by the RBI has a drawing of the 'Parliament House' depicted on it? [SSC Graduate 2003] A) Rs. 10. B) Rs. 500. C) Rs. 100. D) Rs. 50. Show Answer Correct Answer: D) Rs. 50. 14. The terms of economics, the recession occurring two times with a small gap in between is known as [Bank of India PO 2010] A) Deep Recession. B) Double Deflation. C) Deflation. D) Double Dip Recession. Show Answer Correct Answer: A) Deep Recession. 15. Which of the following causes of inflation is often described as "too much money chasing too few goods" ? A) Demand-pull inflation. B) Cost-push inflation. C) Demand-push inflation. D) Cost-pull inflation. Show Answer Correct Answer: A) Demand-pull inflation. 16. Formal sector loan sources are ..... A) Money lenders, friends, relatives. B) Land owners, employers. C) Banks, Cooperative societies, SHGs. D) Reserve Bank of India, The World Bank. Show Answer Correct Answer: C) Banks, Cooperative societies, SHGs. 17. In India ..... is considered as the appropriate indicator of Inflation A) CPI. B) WPI. C) GDP. D) None of above. Show Answer Correct Answer: B) WPI. 18. Of the various ways of financing government's investment expenditure, the least inflationary is : [PCS 1994] A) Deficit financing. B) Public borrowing. C) Taxation. D) Foreign aid. Show Answer Correct Answer: C) Taxation. 19. Most of the important decisions regarding the savings and loan activities are taken by the ..... A) Treasurer. B) Group leader. C) Group members. D) Secretary. Show Answer Correct Answer: C) Group members. 20. Convertibility of the rupee implies: [IAS 1994] A) Being able to convert rupee notes into gold. B) Freely permitting the conversion of rupee to other major currencies and vice versa. C) Allowing the value of the rupee to be fixed by market forces. D) Developing an international market for currencies in India. Show Answer Correct Answer: B) Freely permitting the conversion of rupee to other major currencies and vice versa. 21. When was the decimal system of currency introduced in India? A) 1957. B) 1950. C) 1948. D) 1954. Show Answer Correct Answer: A) 1957. 22. Which among the following is not one of the functions of RBI? A) Banking Supervision. B) Controlling employment in the country. C) Lender of last resort. D) Controlling inflation. Show Answer Correct Answer: B) Controlling employment in the country. 23. What prevents the poor from getting bank credit? A) Absence of collateral. B) Documentation procedure. C) High rate of interest. D) None of these. Show Answer Correct Answer: A) Absence of collateral. 24. Inflationary Gap is a situation characterized by: A) Excess of Aggregate Demand over Aggregate Supply at the full employment level. B) Gap between Galloping Inflation and Runaway Inflation. C) Inflation coupled with recession. D) Inflation that usually prevails in a developing country. Show Answer Correct Answer: A) Excess of Aggregate Demand over Aggregate Supply at the full employment level. 25. How many languages are used on a ten rupee note? A) 15. B) 2. C) 7. D) 10. Show Answer Correct Answer: A) 15. 26. Which of the following is/are treated as artificial currency? [IAS 2010] A) ADR. B) GDR. C) SDR. D) Both ADR and SDR. Show Answer Correct Answer: C) SDR. 27. Which of the following is wrongly matched? A) Depression: Insufficient demand causing large scale unemployment of men and machinery over a long period of time. B) Recession: Reduction in demand and production/ investment over a short period of time. C) Stagflation: slow pace of economic activity due to falling prices. D) Boom: Rapid and all-round spurt in economic activity. Show Answer Correct Answer: C) Stagflation: slow pace of economic activity due to falling prices. 28. What 2 types of inflation are there? A) Demand pull and cost push. B) Demand pull and supply glut. C) Supply glut and demand side. D) Supply inflation and demand inflation. Show Answer Correct Answer: A) Demand pull and cost push. ← PreviousRelated QuizzesIndian Economy QuizzesGeneral Knowledge QuizzesCurrency And Inflation Quiz 1Currency And Inflation Quiz 2Lifelines Of Indian Economy QuizSectors Of The Indian Economy Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books