CURRENCY INFLATION MCQS SET 01

CURRENCY INFLATION MCQS SET 01

1) The cause of inflation is :
A) increase in money supply
B) fall in production
C) increase in money supply and fall in production
D) decrease I money supply and fall in production
Correct Answer: increase in money supply and fall in production
   
2) Who among the following is most benefitted from inflation?
A) Government pensioners
B) Creditors
C) Savings Bank Account holders
D) Debtors
Correct Answer: Debtors
   
3) Which of the following groups suffer the most from inflation?
A) Debtors
B) Creditors
C) Business class
D) Holders of real assets
Correct Answer: Creditors
   
4) Minimum inflation in post economic reform was in :
A) 1999-2000
B) 2000-01
C) 2001-02
D) 2002-03
Correct Answer: 1999-2000
   
5) Inflation implies :
A) rise in budget deficit
B) rise in money supply
C) rise in general price index
D) rise in prices of consumer goods
Correct Answer: rise in general price index

6) The situation with increasing unemployment and inflation is termed as :
A) hyperinflation
B) galloping inflation
C) stag inflation
D) reflation
Correct Answer: stag inflation
   
7) 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
Correct Answer: 15% increase in supply of money in the market
   
8) Which of the following can be used for checking inflation temporarily?
A) Increase in wages
B) Decrease in money supply
C) Decrease in taxes
D) None of these
Correct Answer: Decrease in money supply
   
9) Who among the following are not protected against inflation?
A) Salaried class
B) Industrial workers
C) Pensioners
D) Agricultural farmers
Correct Answer: Agricultural farmers
   
10) An essential attribute of inflation is :
A) fall in production
B) increase in prices
C) absence of black market
D) presence of black market
Correct Answer: increase in prices