This quiz works best with JavaScript enabled. Home > Indian Economy > Basics > Currency And Inflation – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Currency And Inflation Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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. Show Answer Correct Answer: C) 15% increase in supply of money in the market. 2. Minimum inflation in post economic reform was in : A) 1999-2000. B) 2000-01. C) 2001-02. D) 2002-03. Show Answer Correct Answer: A) 1999-2000. 3. One-rupee currency notes bear the signature of: A) Prime Minister of India. B) President of India. C) Finance Minister of India. D) Finance Secretary of India. Show Answer Correct Answer: D) Finance Secretary of India. 4. A typical SHG has ..... members. A) 15 to 20. B) 20 to 25. C) 25 to 30. D) 30 to 35. Show Answer Correct Answer: A) 15 to 20. 5. Reserve bank of India grants loans to A) General public. B) Private Companies. C) Commercial Banks. D) All of these. Show Answer Correct Answer: C) Commercial Banks. 6. As per FSR, India's share of dollar-denominated debt has been: A) Increasing. B) Falling. C) Remained stagnant. D) Rapidly increasing. Show Answer Correct Answer: B) Falling. 7. Which one is the following is the important characteristic of modern form of currency? A) It is made from precious metal. B) It is made from thing of everyday use. C) It is authorized by commercial banks. D) It is authorized by the Government of the country. Show Answer Correct Answer: D) It is authorized by the Government of the country. 8. Why do banks keep a small proportion of the deposits as cash with themselves? A) To extend loan to the poor. B) To extend loan facility. C) To pay salary to their staff. D) To pay the depositors who might come to withdraw money. Show Answer Correct Answer: D) To pay the depositors who might come to withdraw money. 9. SEBI was primarily set up to A) Regulate the activities of the merchant banks. B) To control the operations of mutual funds. C) To work as a regulator of the stock exchange activities. D) All of the above. Show Answer Correct Answer: D) All of the above. 10. Deficit financing creates additional paper currency to fill the gap between expenditure and revenue. This device aims at economic development but if it fails, it generates : [IFS 1990] A) Inflation. B) Devaluation. C) Deflation. D) Demonetization. Show Answer Correct Answer: A) Inflation. 11. As per FSR, Banks have also been drawing down their high-quality-liquid assets (HQLAs) to fund credit growth. This will most likely ..... Liquidity Coverage Ratio (LCR): A) Increase. B) Decrease. C) No Impact on. D) None of the above. Show Answer Correct Answer: B) Decrease. 12. An index that measures the prices of a market basket of goods that typical consumers purchase. A) Consumer Price Index. B) Federal Reserve. C) Bank. D) Deflation. Show Answer Correct Answer: A) Consumer Price Index. 13. The States' debt does not include: A) Loans from State Bank of India. B) Loans from the Central Government. C) Provident Funds. D) Treasury bills issued to international financial institutions. Show Answer Correct Answer: D) Treasury bills issued to international financial institutions. 14. The effect of inflation on tax revenue results in a situation known as : A) Stagflation. B) Fiscaldrag. C) Reflation. D) Disinflation. Show Answer Correct Answer: B) Fiscaldrag. 15. After ..... or ....., if the SHG is regular in savings, it becomes eligible for availing loan from the bank. A) 3 years or 4 years. B) 5 years or 6 years. C) 6 months or 1 year. D) A year or two. Show Answer Correct Answer: D) A year or two. 16. ..... are the building blocks of organisation of the rural poor A) Banks. B) Cooperative societies. C) SHGs. D) Formal sources of credit. Show Answer Correct Answer: C) SHGs. 17. ..... and ..... credit is crucial for the country's development A) Accessible and affordable. B) Timely and feasible. C) Less and high amount of. D) Cheap and affordable. Show Answer Correct Answer: D) Cheap and affordable. 18. The period of high inflation and low economic growth is termed as: [RRB 1992] A) Stagnation. B) Take-off stage in economy. C) Stagflation. D) None of these. Show Answer Correct Answer: C) Stagflation. 19. Most countries try to maintain an inflation rate of ..... per year. A) One percent or less. B) Two to three percent. C) Four to five percent. D) Six to seven percent. Show Answer Correct Answer: B) Two to three percent. 20. Which one is an example of Informal Source of Credit A) Banks. B) Cooperative Societies. C) Money Lender. D) All of these. Show Answer Correct Answer: C) Money Lender. ← PreviousNext →Related QuizzesIndian Economy QuizzesCurrency And Inflation Quiz 1Currency And Inflation Quiz 2Currency And Inflation Quiz 3Currency 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