CURRENCY INFLATION MCQS SET 20

CURRENCY INFLATION MCQS SET 20

191) Consider the following statements regarding the determination of inflation in India
1. Food price index consists of two sub components, namely primary food articles and manufactured food products.
2. The weight of the primary food articles is less than the manufactured food products.
Which of the statements given above is/are correct?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Only 1
   
192) Consider the following statements
1. inflation benefits the debtors.
2. inflation benefits the bondholders.
Which of the statements given above is/are correct?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Only 1
   
193) Consider the following items
1. Sugar
2. Sugarcane
3. Vegetable oils
Which of the items given above is/are the essential commodities under the Essential Commodities Act, 1955?
A) Only 1
B) 1 and 3
C) 2 and 3
D) All of the above
Correct Answer: All of the above
   
194) Gross National Product at market prices is defined as
A) the market value of all final goods and services produced in an economy taking into account Net Factor Income from Abroad.
B) the market value of all final goods and services produced in an economy.
C) the market value of all final goods and services produced in an economy plus indirect taxes.
D) the market value of all final goods and services produced in an economy plus indirect taxes minus subsidies.
Correct Answer: the market value of all final goods and services produced in an economy taking into account Net Factor Income from Abroad.
   
195) Consider the following statements
1. Inflation swap is an over the counter and exchange-traded derivative that is used to transfer inflation risk from one counter party to another.
2. Limited price inflation swaps are inflation swaps which are capped and floored between 0% and 5%.
Which of the statements given above is/are correct?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither1 nor 2
Correct Answer: Both 1 and 2

196) Which one of the following statements is/are correct about the determination of inflation in India?
A) The overall weight of the composite food index in the WPI is around 50%.
B) The weight of primary food articles is around 15% in the WPI.
C) The weight of manufactured food products is less than 10%.
D) Both 'b' and 'c' are correct.
Correct Answer: Both 'b' and 'c' are correct.
   
197) Which of the following factors led to a decline in inflation rate in India during 2014-15?
1. Persistent decline in crude oil prices
2. Softness in global prices of tradables such as edible oils and coal
3. Tight monetary policy pursued by the Reserve Bank of India
Select the correct answer using the codes given below
A) Only 1
B) 1 and 2
C) 2 and 3
D) 1, 2 and 3
Correct Answer: 1, 2 and 3
   
198) 'World Development Report' is an annual publication of
A) United Nations Development Programme
B) International Bank of Reconstruction and Development
C) World Trade Organisation
D) International Monetary Fund
Correct Answer: International Bank of Reconstruction and Development
   
199) Which of the following income groups has/have benefits during inflation?
1. Business community
2. Fixed income groups
3. Farmers
4. Investors (who invest in debentures)
Select the correct answer using the codes given below
A) 1 and 4
B) 1 and 3
C) 2 and 4
D) All of these
Correct Answer: 1 and 3
   
200) A rise in general level of prices may be caused by
1. an increase in the money supply.
2. a decrease in the aggregate level of output.
3. an increase in the effective demand.
Select the correct answer using the codes given below
A) Only 1
B) 1 and 2
C) 2 and 3
D) All of these
Correct Answer: All of these