This quiz works best with JavaScript enabled. Home > Indian Economy > Basics > Currency And Inflation – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Currency And Inflation Quiz 8 (12 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Of the various ways of financing government's investment expenditure, the least inflationary is : [PCS 1994] A) Foreign aid. B) Deficit financing. C) Taxation. D) Public borrowing. Show Answer Correct Answer: C) Taxation. 2. Most of the important decisions regarding the savings and loan activities are taken by the ..... A) Secretary. B) Treasurer. C) Group leader. D) Group members. Show Answer Correct Answer: D) Group members. 3. 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. 4. When was the decimal system of currency introduced in India? A) 1948. B) 1950. C) 1954. D) 1957. Show Answer Correct Answer: D) 1957. 5. Which among the following is not one of the functions of RBI? A) Controlling inflation. B) Banking Supervision. C) Lender of last resort. D) Controlling employment in the country. Show Answer Correct Answer: D) Controlling employment in the country. 6. 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. 7. 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. 8. How many languages are used on a ten rupee note? A) 2. B) 7. C) 10. D) 15. Show Answer Correct Answer: D) 15. 9. 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. 10. 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. 11. M1 includes: A) Currency with public. B) Demand deposit with bank. C) Other deposits with RBI. D) All of the above. Show Answer Correct Answer: D) All of the above. 12. 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 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 7Lifelines Of Indian Economy QuizSectors Of The Indian Economy Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books