This quiz works best with JavaScript enabled. Home > Indian Economy > Basics > Currency And Inflation – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Currency And Inflation Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Inflation is caused as a result of: A) Increase in money supply. B) Fall in production. C) Increase in money supply without a corresponding increase in production. D) Decrease in money supply without a corresponding decrease in production. Show Answer Correct Answer: C) Increase in money supply without a corresponding increase in production. 2. Demand-Pull inflation can be describes as too many ..... chasing too few ..... A) Jobs, workers. B) Consumers, producers. C) Dollars, goods. D) None of above. Show Answer Correct Answer: C) Dollars, goods. 3. No individual in India can legally refuse a payment made ..... A) Rupees. B) Money. C) Deposits. D) Cheque. Show Answer Correct Answer: A) Rupees. 4. Index number that represents general change in wholesale prices of commodities is ..... A) Consumer Price Index. B) Wholesale Price Index. C) Food Basket. D) None of above. Show Answer Correct Answer: B) Wholesale Price Index. 5. Which one of the following is not a modern form of money? A) Demand deposits. B) Paper currency. C) Coins. D) Precious metals. Show Answer Correct Answer: D) Precious metals. 6. Who is the founder of Grameen Bank of Bangladesh? A) Mohammad Yunus. B) Mohammad Kasim. C) Mohammad Tuglaq. D) Mohammad Zakir. Show Answer Correct Answer: A) Mohammad Yunus. 7. Which authority regulate and overlook the credit sysetm and economic activites in India A) NSSO. B) CBI. C) Finance Minister. D) RBI. Show Answer Correct Answer: D) RBI. 8. Choose the correct meaning of organised sector: A) It covers those enterprises where the terms of employment are regular. B) It is outside the control of the government. C) Jobs are not regular. D) It provides low salaries. Show Answer Correct Answer: A) It covers those enterprises where the terms of employment are regular. 9. Which of the following examples does not fall under unorganised sector? A) A farmer irrigating his field. B) A daily wage labourer working for a contractor. C) A doctor in a hospital treating a patient. D) A handloom weaver working on a loom in her house. Show Answer Correct Answer: C) A doctor in a hospital treating a patient. 10. Which of the following act defines a Cheque? A) RBI Act 1934. B) Negotiable Instrument Act 1881. C) Banking Regulation Act 1949. D) Companies Act 2013. Show Answer Correct Answer: B) Negotiable Instrument Act 1881. 11. Bank deposit is a non-marketable security AND Government bond is a long-term security. A) TRUE AND TRUE. B) TRUE AND FALSE. C) FALSE AND TRUE. D) FALSE AND FALSE. Show Answer Correct Answer: A) TRUE AND TRUE. 12. What is the main source of income for banks? A) Interest on loans. B) Interest on deposits. C) Difference between the interest charged on borrowers and depositors. D) None of these. Show Answer Correct Answer: C) Difference between the interest charged on borrowers and depositors. 13. Which of the following is least risky? A) Equity. B) Corporate Bonds. C) Treasury Bills. D) Certificate of Deposits. Show Answer Correct Answer: C) Treasury Bills. 14. Hard Currency is defined as currency: A) Which can hardly be used for international transactions. B) Which is used in times of war. C) Which loses its value very fast. D) Traded in foreign exchange market for which demand is persistently relative to the supply. Show Answer Correct Answer: D) Traded in foreign exchange market for which demand is persistently relative to the supply. 15. Which of the following is not an organized sector in India? A) Nationalized Banks. B) Regional Rural Banks. C) Cooperative Banks. D) Chits and Money lenders. Show Answer Correct Answer: D) Chits and Money lenders. 16. Which of the following types of inflation interferes with a company's ability to plan for the future? A) Expected inflation. B) Unexpected inflation. C) Creeping inflation. D) Galloping inflation. Show Answer Correct Answer: B) Unexpected inflation. 17. In a SHG most of the decisions regarding loan activities are taken by A) Banks. B) Members. C) Non-government organisation. D) Cooperative. Show Answer Correct Answer: B) Members. 18. It is important that the formal credit is distributed more equally so that A) Poor can benefit from cheaper loans. B) Rich can get costly loans. C) Rich can get cheaper loans. D) None of these. Show Answer Correct Answer: A) Poor can benefit from cheaper loans. 19. Black money is : A) Counterfeit currency. B) Illegally earned money. C) Money earned through underhand deals. D) Income on which payment of tax is usually evaded. Show Answer Correct Answer: D) Income on which payment of tax is usually evaded. 20. M3 includes: A) $M_1$ + T.D. B) $M_1$ + post office saving deposit. C) $M_1$ $\pm$ post office total deposit. D) $M_1$ + national saving certificate. Show Answer Correct Answer: A) $M_1$ + T.D. Next →Related QuizzesIndian Economy QuizzesCurrency And Inflation Quiz 2Currency And Inflation Quiz 3Currency And Inflation Quiz 4Currency And Inflation Quiz 5Currency And Inflation Quiz 6Currency And Inflation Quiz 7Currency And Inflation Quiz 8Lifelines Of Indian Economy QuizSectors Of The Indian Economy Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books