This quiz works best with JavaScript enabled. Home > Indian Economy > Basics > Currency And Inflation – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Currency And Inflation Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If aggregate demand rises faster than producers can supply goods services A) Demand-pull inflation. B) Cost-push inflation. C) Inflation. D) None of above. Show Answer Correct Answer: A) Demand-pull inflation. 2. As per the latest released FSR if in an economy Banks have low market power then the entry of a CBDC that directly competes with bank deposits may result in: A) Lower deposit rates. B) Higher Deposit rates. C) No impact on deposit rates. D) Deposit rates will first decrease then increase. Show Answer Correct Answer: B) Higher Deposit rates. 3. Who among the following are not protected against inflation.? [Railways 1992] A) Salaried class. B) Industrial workers. C) Pensioners. D) Agricultural farmers. Show Answer Correct Answer: D) Agricultural farmers. 4. Banks provide a higher rater of interest on which one of the following accounts? A) Saving account. B) Current account. C) Fixed deposits for long periods. D) Fixed deposits for very short periods. Show Answer Correct Answer: C) Fixed deposits for long periods. 5. More money purchasing less goods and services means A) Deflation. B) Inflation. C) Stagflation. D) None of these. Show Answer Correct Answer: B) Inflation. 6. 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. 7. 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. 8. The special paper required for printing of currency notes by the Security Presses In the country is manufactured at : A) Hyderabad. B) Kolkata. C) Hoshangabad. D) Dewas. Show Answer Correct Answer: C) Hoshangabad. 9. In the last one decade, which one among the following sectors has attracted the highest Foreign Direct Investment inflows into India? [IAS 2004] A) Chemicals other than fertilizers. B) Services sector. C) Food processing. D) Telecommunication. Show Answer Correct Answer: D) Telecommunication. 10. 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. 11. Which of the following Mahatma Gandhi series of currency notes issued by the RBI has "ecology" depicted on it? [SSC Graduate 2003] A) Rs. 500. B) Rs. 100. C) Rs. 50. D) Rs. 5. Show Answer Correct Answer: B) Rs. 100. 12. The ..... legalises the use of rupee as a medium of payment that cannot be refused in settling transactions in India. A) Government. B) Law. C) Court. D) Prime Minister. Show Answer Correct Answer: B) Law. 13. In ..... inflation prices rise about 2% annually. A) Creeping. B) Walking. C) Running. D) Hyper. Show Answer Correct Answer: A) Creeping. 14. Which of the following is not a regulatory institution in Indian financial system? A) RBI. B) CIBIL. C) SEBI. D) IRDA. Show Answer Correct Answer: B) CIBIL. 15. Rising prices lead to all but one of the following: A) Promotion of inequalities. B) Generation of black money. C) Adverse effect on balance of payments. D) Adverse effect on speculation. Show Answer Correct Answer: D) Adverse effect on speculation. 16. 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. 500. B) Rs. 100. C) Rs. 50. D) Rs. 10. Show Answer Correct Answer: C) Rs. 50. 17. The terms of economics, the recession occurring two times with a small gap in between is known as [Bank of India PO 2010] A) Double Deflation. B) Deflation. C) Deep Recession. D) Double Dip Recession. Show Answer Correct Answer: C) Deep Recession. 18. 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. 19. 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. 20. 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. ← PreviousNext →Related QuizzesIndian Economy QuizzesCurrency And Inflation Quiz 1Currency And Inflation Quiz 2Currency And Inflation Quiz 3Currency And Inflation Quiz 4Currency And Inflation Quiz 5Currency And Inflation Quiz 6Currency And Inflation Quiz 8Lifelines Of Indian Economy QuizSectors Of The Indian Economy Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books