Inflation Quiz 1 (25 MCQs)

Quiz Instructions:

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1. Costs when they make more trips to the bank in order to hold significant amounts of money.

2. After writing a check for $ 172, your account is overdrawn by $ 31. How much money did you have in the account before you wrote the check?

3. With which of the given ways to finance government spendings seigniorage is connected:

4. The government through the Central Bank is going to repurchase all bonds issued to the public. This measure would best:

5. The GDP DeflatorI. is used to calculate inflation rates.II. is an alternative to the CPI.III. is more accurate than the CPI.

6. A general decline in the level of prices is called

7. What would be likely to increase inflation in an economy? MAY/JUNE 2007 01

8. It assumes that people save in order to distribute their consumption over their lifetime.

9. Why might students be affected adversely by inflation?

10. As price level in the nation's economy decreases,

11. Which of the following is NOT a component of GDP?

12. When I need to _____ money from my checking account, I can use my debit card at an ATM.

13. If nominal out is $ 100 billion dollars while real output is $ 90 then the GDP deflator (price index) is

14. Buying an item that was not planned for or buying without thinking is known as _____

15. If CPI goes from 100 to 300, what happened to your purchasing power?

16. According to the Demand-Pull Theory, inflation is caused by _____

17. The primary way an investor earns a return from bonds is _____

18. This is the annual percentage return realized on an investment.

19. This is a collection of goods purchased by a city dweller to determine the level of inflation

20. Which of the following MUST decline in order to slow demand-pull inflation?

21. To reduce the rate of demand-pull inflation, an appropriate policy would be

22. What is the term for the lowest possible level of unemployment?

23. Choose appropriate adverbs to the word "inflation" :

24. If inflation outpaces wages _____

25. Who is least likely hurt by inflation?