This quiz works best with JavaScript enabled. Home > Indian Economy > Basics > Currency And Inflation – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Currency And Inflation Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The service sector includes activities such as: A) Agriculture, dairy, fishing and forestry. B) Making sugar, jaggery and bricks. C) Transport, communication and banking. D) None of above. Show Answer Correct Answer: C) Transport, communication and banking. 2. Which of the following is not related with Money Market? A) Treasury Bills. B) Commercial Bills. C) Certificates of Deposit. D) Shares. Show Answer Correct Answer: D) Shares. 3. Monetary policy is regulated by: A) Money lenders. B) Central Bank. C) Private entrepreneurs. D) Government policy. Show Answer Correct Answer: B) Central Bank. 4. The situation with increasing unemployment and inflation is termed as: [CPO AC 2003] A) Hyperinflation. B) Galloping inflation. C) Stagflation. D) Reflation. Show Answer Correct Answer: C) Stagflation. 5. ..... inflation brings a total collapse of the Economy. A) Creeping. B) Galloping. C) Running. D) Walking. Show Answer Correct Answer: B) Galloping. 6. Ten rupee notes bear the signature of: A) President. B) Finance Minister. C) Secretary, Ministry of Finance. D) Governor, Reserve Bank of India. Show Answer Correct Answer: D) Governor, Reserve Bank of India. 7. Which of the following groups suffer the most from inflation? [CPO SI 2003] A) Debtors. B) Creditors. C) Business class. D) Holders of real assets. Show Answer Correct Answer: B) Creditors. 8. Who is most likely to be hurt by inflation? A) Someone who borrowed money. B) A retiree on a fixed income. C) A business owner. D) The U.S. government. Show Answer Correct Answer: B) A retiree on a fixed income. 9. Terms of credit does not include A) Interest rate. B) Collateral. C) Cheque. D) Mode of repayment. Show Answer Correct Answer: C) Cheque. 10. Money: A) Eliminates double-coincidence of wants. B) Acts as a common measure of value. C) Acts as a store of value. D) All the above. Show Answer Correct Answer: D) All the above. 11. Stagflation implies a case of: [CDS 1992] A) Galloping inflation. B) Recession plus inflation. C) Adverse balance of trade. D) Rising wages and employment. Show Answer Correct Answer: B) Recession plus inflation. 12. As per the latest FSR, an increase in the value of USD also tend to: A) Decrease inflation by driving down import prices. B) Increase inflation by driving down import prices. C) Increase inflation by driving up import prices. D) Decrease inflation by driving up import prices. Show Answer Correct Answer: C) Increase inflation by driving up import prices. 13. What causes demand pull inflation? A) Rise in price due to a decrease in supply. B) A rise in price level due to an increase in consumption. C) A rise in price due to an increase in the cost of production. D) A decrease in price due to a decrease in supply. Show Answer Correct Answer: B) A rise in price level due to an increase in consumption. 14. The Issue Department of the RBI maintains a ....... against printing of notes: A) Minimum Reserve System. B) Proportional Reserve System. C) Proportional Gold Reserve System. D) Proportional Foreign Securities Reserve System. Show Answer Correct Answer: A) Minimum Reserve System. 15. Rupee was devalued by what percent in July 1991 ? [MP PCS 1990] A) 18. B) 20. C) 22. D) 25. Show Answer Correct Answer: B) 20. 16. After a year or two if the SHG is regular in savings, it becomes eligible for availing loan from A) Cooperative societies. B) Money lenders. C) Bank. D) Traders. Show Answer Correct Answer: C) Bank. 17. The FSR attributes majority of decline in foreign reserves to: A) Valuation losses. B) Intervention in FX market. C) Sale of Foreign currency assets. D) Write-off of Foreign currency assets. Show Answer Correct Answer: A) Valuation losses. 18. Inflation implies: [Railways 1994] A) Rise in budget deficit. B) Rise in money supply. C) Rise in general price index. D) Rise in prices of consumer goods. Show Answer Correct Answer: C) Rise in general price index. 19. ..... inflation affects the poor and middle class people adversely. A) Creeping. B) Walking. C) Running. D) Hyper. Show Answer Correct Answer: C) Running. 20. SHGs help borrowers overcome the problem of lack of ..... A) Terms of credit. B) Collateral. C) Credit. D) Loan. Show Answer Correct Answer: B) Collateral. ← PreviousNext →Related QuizzesIndian Economy QuizzesCurrency And Inflation Quiz 1Currency And Inflation Quiz 2Currency 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