This quiz works best with JavaScript enabled. Home > Monetary > Currency > Currency And Inflation – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Currency And Inflation Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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. Show Answer Correct Answer: C) Increase in money supply without a corresponding increase in production. 2. Which of the following act defines a Cheque? A) RBI Act 1934. B) Negotiable Instrument Act 1881. C) Banking Regulation Act 1949. D) Companies Act 2013. Show Answer Correct Answer: B) Negotiable Instrument Act 1881. 3. Bank deposit is a non-marketable security AND Government bond is a long-term security. A) TRUE AND TRUE. B) TRUE AND FALSE. C) FALSE AND TRUE. D) FALSE AND FALSE. Show Answer Correct Answer: A) TRUE AND TRUE. 4. Which of the following is least risky? A) Equity. B) Corporate Bonds. C) Treasury Bills. D) Certificate of Deposits. Show Answer Correct Answer: C) Treasury Bills. 5. Hard Currency is defined as currency: A) Which can hardly be used for international transactions. B) Which is used in times of war. C) Which loses its value very fast. D) Traded in foreign exchange market for which demand is persistently relative to the supply. Show Answer Correct Answer: D) Traded in foreign exchange market for which demand is persistently relative to the supply. 6. Which of the following is not an organized sector in India? A) Nationalized Banks. B) Regional Rural Banks. C) Cooperative Banks. D) Chits and Money lenders. Show Answer Correct Answer: D) Chits and Money lenders. 7. Black money is : A) Counterfeit currency. B) Illegally earned money. C) Money earned through underhand deals. D) Income on which payment of tax is usually evaded. Show Answer Correct Answer: D) Income on which payment of tax is usually evaded. 8. M3 includes: A) $M_1$ + T.D. B) $M_1$ + post office saving deposit. C) $M_1$ $\pm$ post office total deposit. D) $M_1$ + national saving certificate. Show Answer Correct Answer: A) $M_1$ + T.D. 9. As per the latest released FSR, Indian Banking system has remained resilient mainly due to: A) Improvement in profitability. B) Adequate capital buffer. C) High level of non-performing loans. D) None of the above. Show Answer Correct Answer: B) Adequate capital buffer. 10. 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 in money supply and fall in production. Show Answer Correct Answer: C) Increase in money supply and fall in production. 11. Which of the following governmental steps has proved relatively effective in controlling the double digit rate of inflation in the Indian economy during recent years? A) Containing budgetory deficits and unproductive expenditure. B) Streamlined public distribution system. C) Enhanced rate of production of all consumer goods. D) Pursuing an export-oriented strategy. Show Answer Correct Answer: A) Containing budgetory deficits and unproductive expenditure. 12. An agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment. A) Credit(loan). B) Chit fund. C) Bank. D) Cheque. Show Answer Correct Answer: A) Credit(loan). 13. To meet the growing needs for coins in the country, where does the Government propose to set up another mint? A) Nasik. B) Hoshangabad. C) Dewas. D) Noida. Show Answer Correct Answer: D) Noida. 14. 'Devaluation' means: [RRB 1992] A) Converting rupee into gold. B) Lowering of the value of one currency in comparison of some foreign currency. C) Making rupee dealer in comparison to some foreign currency. D) None of these. Show Answer Correct Answer: B) Lowering of the value of one currency in comparison of some foreign currency. 15. The latest released FSR refers to Bank for International Settlements (BIS) quarterly review ( Dec 2022). According to the BIS estimates US $ 80 trillion of dollar debt is " missing" , the missing debt as per BIS report is mainly in the form of: A) Government Bonds. B) FX Swaps. C) Private debt. D) Household debt. Show Answer Correct Answer: B) FX Swaps. 16. Inflation can be contained by: A) Surplus budget. B) Increase in taxation. C) Reduction in public expenditure. D) All the above. Show Answer Correct Answer: D) All the above. 17. Which of the following mints undertakes refining of gold for licensed gold dealers and production of medals for defence services? A) The Hyderabad Mint. B) The Mumbai Mint. C) The Kolkata Mint. D) None of the above. Show Answer Correct Answer: B) The Mumbai Mint. 18. If Net capital flows led by foreign portfolio investment (FPI), foreign direct investment (FDI) and trade credit fell short of the funding requirements of CAD, it will result in: A) A depletion of foreign exchange reserves. B) An increase of foreign exchange reserves. C) Unchanged foreign exchange reserves. D) None of the above. Show Answer Correct Answer: A) A depletion of foreign exchange reserves. 19. The inflation experienced in the country at present is: A) Galloping inflation. B) Secondary inflation. C) Unrealistic inflation. D) Cost-push inflation. Show Answer Correct Answer: D) Cost-push inflation. 20. "Scheduled bank" in India means a bank ..... A) Incorporated under the Companies Act, 1956. B) Authorized to the Banking business. C) Governed by the Banking Regulation Act, 1949. D) Included in the Second schedule to the Reserve Bank of India Act 1934. Show Answer Correct Answer: D) Included in the Second schedule to the Reserve Bank of India Act 1934. Next →Related QuizzesMonetary QuizzesCurrency And Inflation Quiz 2Currency And Inflation Quiz 3Currency And Inflation Quiz 4Currency And Inflation Quiz 5 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books