This quiz works best with JavaScript enabled. Home > Economics > Monetary > Currency > Currency And Inflation – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Currency And Inflation Quiz 3 (29 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. As per the FSR lending by private sector banks (PVBs), continued to ..... that of PSB counterparts A) Outpace. B) Trail. C) Match. D) None of the above. Show Answer Correct Answer: A) Outpace. 2. A very rapid growth in prices in which money loses its value to the point where even barter may be preferable is known as: A) Inflation. B) Hyper-inflation. C) Deflation. D) Disinflation. Show Answer Correct Answer: B) Hyper-inflation. 3. Which of the following is considered to be more secure instrument? A) Draft. B) Hundi. C) Cheque. D) Commercial Paper. Show Answer Correct Answer: A) Draft. 4. Which of the following prints currency notes of the denomination of Rs. 100? A) The Bank Note Press, Dewas. B) The Indian Security Press, Nasik Road. C) The Security Printing Press, Hyderabad. D) All of the above. Show Answer Correct Answer: A) The Bank Note Press, Dewas. 5. As per the FSR Indian equity market valuations are relatively: A) Ready to go high. B) Low. C) High. D) Stagnant. Show Answer Correct Answer: C) High. 6. In options, risk reversal means: A) A measure of the difference between the implied volatilities of out-of-the money call and put options. B) A measure of the summation between the implied volatilities of out-of-the money call and put options. C) Volatility. D) Time decay. Show Answer Correct Answer: A) A measure of the difference between the implied volatilities of out-of-the money call and put options. 7. As per the FSR the moderation in external demand has pulled merchandise exports into: A) Expansion. B) Contraction. C) Flat. D) None of the above. Show Answer Correct Answer: B) Contraction. 8. Broad money in India is : A) $M_2$. B) $M_4$. C) $M_3$. D) $M_1$. Show Answer Correct Answer: C) $M_3$. 9. The highest denomination of currency notes in circulation as legal tender in India is at present: A) Rs.1000. B) Rs. 500. C) Rs.100. D) Rs. 50. Show Answer Correct Answer: A) Rs.1000. 10. As per the latest released FSR if in an economy Banks have low market power then the entry of a CBDC that directly competes with bank deposits may result in: A) Higher Deposit rates. B) No impact on deposit rates. C) Lower deposit rates. D) Deposit rates will first decrease then increase. Show Answer Correct Answer: A) Higher Deposit rates. 11. Who among the following are not protected against inflation.? [Railways 1992] A) Salaried class. B) Pensioners. C) Industrial workers. D) Agricultural farmers. Show Answer Correct Answer: D) Agricultural farmers. 12. As per the FSR, on some days the overnight rates breached the repo rate, this was most likely due to: A) Day-to-day movements in government cash balances. B) Increase in system liquidity. C) Increase in funds available at banks. D) None of the above. Show Answer Correct Answer: A) Day-to-day movements in government cash balances. 13. As per the latest released FSR under India's G20 presidency, one of the priorities is to develop a framework for global regulation for cryptos. One of the possibility that the report talks about is: A) Prohibition, of unbacked crypto assets, stablecoins and DeFi. B) Limited use of unbacked crypto assets, stablecoins and DeFi. C) Adoption of unbacked crypto assets, stablecoins and DeFi. D) Bank adoption of unbacked crypto assets, stablecoins and DeFi. Show Answer Correct Answer: A) Prohibition, of unbacked crypto assets, stablecoins and DeFi. 14. The special paper required for printing of currency notes by the Security Presses In the country is manufactured at : A) Hyderabad. B) Kolkata. C) Hoshangabad. D) Dewas. Show Answer Correct Answer: C) Hoshangabad. 15. In the last one decade, which one among the following sectors has attracted the highest Foreign Direct Investment inflows into India? [IAS 2004] A) Food processing. B) Chemicals other than fertilizers. C) Telecommunication. D) Services sector. Show Answer Correct Answer: C) Telecommunication. 16. Rising rates mainly result in ..... for banks investment book. A) MTM gain. B) MTM loss. C) No impact. D) None of the above. Show Answer Correct Answer: B) MTM loss. 17. Which of the following Mahatma Gandhi series of currency notes issued by the RBI has "ecology" depicted on it? [SSC Graduate 2003] A) Rs. 5. B) Rs. 100. C) Rs. 50. D) Rs. 500. Show Answer Correct Answer: B) Rs. 100. 18. Which of the following is not a regulatory institution in Indian financial system? A) IRDA. B) RBI. C) SEBI. D) CIBIL. Show Answer Correct Answer: D) CIBIL. 19. Rising prices lead to all but one of the following: A) Adverse effect on speculation. B) Generation of black money. C) Adverse effect on balance of payments. D) Promotion of inequalities. Show Answer Correct Answer: A) Adverse effect on speculation. 20. Which of the following Mahatma Gandhi series of currency notes issued by the RBI has a drawing of the 'Parliament House' depicted on it? [SSC Graduate 2003] A) Rs. 50. B) Rs. 500. C) Rs. 10. D) Rs. 100. Show Answer Correct Answer: A) Rs. 50. 21. The terms of economics, the recession occurring two times with a small gap in between is known as [Bank of India PO 2010] A) Deep Recession. B) Double Deflation. C) Double Dip Recession. D) Deflation. Show Answer Correct Answer: A) Deep Recession. 22. Of the various ways of financing government's investment expenditure, the least inflationary is : [PCS 1994] A) Public borrowing. B) Deficit financing. C) Foreign aid. D) Taxation. Show Answer Correct Answer: D) Taxation. 23. 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. 24. When was the decimal system of currency introduced in India? A) 1948. B) 1957. C) 1954. D) 1950. Show Answer Correct Answer: B) 1957. 25. Which among the following is not one of the functions of RBI? A) Controlling inflation. B) Lender of last resort. C) Banking Supervision. D) Controlling employment in the country. Show Answer Correct Answer: D) Controlling employment in the country. 26. 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. 27. How many languages are used on a ten rupee note? A) 2. B) 15. C) 7. D) 10. Show Answer Correct Answer: B) 15. 28. 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. 29. 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. ← PreviousRelated QuizzesMonetary QuizzesEconomics QuizzesCurrency And Inflation Quiz 1Currency And Inflation Quiz 2 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books