CURRENCY INFLATION MCQS SET 27

CURRENCY INFLATION MCQS SET 27

261) Who among the following are not protected against inflation?
A) Salaried class
B) Industrial workers
C) Pensioners
D) Agricultural farmers
Correct Answer: Agricultural farmers
   
262) The period of high inflation and low economic growth is termed as:
A) stagnation
B) take-off stage in economy
C) stagflation
D) none of these
Correct Answer: stagflation
   
263) Stagflation implies a case of:
A) galloping inflation
B) recession plus inflation
C) adverse balance of trade
D) rising wages and employment
Correct Answer: recession plus inflation
   
264) Inflation can be contained by:
A) surplus budget
B) increase in taxation
C) reduction in public expenditure
D) all the above
Correct Answer: all the above   
 
265) 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:
A) inflation
B) devaluation
C) deflation
D) demonetization
Correct Answer: inflation

266) A steady increase in the general level of prices as a result of excessive increase in aggregate demand as compared to aggregate supply is termed as :
A) demand-pull inflation
B) cost-push inflation
C) stagflation
D) structural inflation
Correct Answer: demand-pull inflation
   
267) Which of the following are definite implications of a fall in inflation?
1. Prices have fallen
2. Prices are increasing more slowly than before
3. Food supply has increased
4. There is industrial stagnation
A) 1 and 3
B) 1 only
C) 2 only
D) 1, 3 and 4
Correct Answer: 2 only
   
268) Among the causes of inflation can be listed:
1. slow growth in agricultural output
2. increasing non-development expenditure of Government
3. rapid population growth
4. rapid growth in costly imports
A) 1 and 2
B) 2 and 3
C) 1, 2, 3 and 4
D) 1 and 4 only
Correct Answer: 1, 2, 3 and 4
   
269) 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
Correct Answer: excess of Aggregate Demand over Aggregate Supply at the full employment level
   
270) Inflation is caused as a result of:
A) increase in money supply
B) fall in production
C) increase in money supply without a corresponding increase in production
D) decrease in money supply without a corresponding decrease in production
Correct Answer: increase in money supply without a corresponding increase in production