This quiz works best with JavaScript enabled. Home > Monetary > Currency > Currency And Inflation – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Currency And Inflation Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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 : [CDS 1999] A) Demand-pull inflation. B) Cost-push inflation. C) Stagflation. D) Structural inflation. Show Answer Correct Answer: A) Demand-pull inflation. 2. Which of the following is not related with Money Market? A) Treasury Bills. B) Commercial Bills. C) Certificates of Deposit. D) Shares. Show Answer Correct Answer: D) Shares. 3. Monetary policy is regulated by: A) Money lenders. B) Central Bank. C) Private entrepreneurs. D) Government policy. Show Answer Correct Answer: B) Central Bank. 4. The situation with increasing unemployment and inflation is termed as: [CPO AC 2003] A) Hyperinflation. B) Galloping inflation. C) Stagflation. D) Reflation. Show Answer Correct Answer: C) Stagflation. 5. Ten rupee notes bear the signature of: A) President. B) Finance Minister. C) Secretary, Ministry of Finance. D) Governor, Reserve Bank of India. Show Answer Correct Answer: D) Governor, Reserve Bank of India. 6. Which of the following groups suffer the most from inflation? [CPO SI 2003] A) Debtors. B) Creditors. C) Business class. D) Holders of real assets. Show Answer Correct Answer: B) Creditors. 7. Stagflation implies a case of: [CDS 1992] A) Galloping inflation. B) Recession plus inflation. C) Adverse balance of trade. D) Rising wages and employment. Show Answer Correct Answer: B) Recession plus inflation. 8. As per the latest FSR, an increase in the value of USD also tend to: A) Decrease inflation by driving down import prices. B) Increase inflation by driving down import prices. C) Increase inflation by driving up import prices. D) Decrease inflation by driving up import prices. Show Answer Correct Answer: C) Increase inflation by driving up import prices. 9. The Issue Department of the RBI maintains a ....... against printing of notes: A) Minimum Reserve System. B) Proportional Reserve System. C) Proportional Gold Reserve System. D) Proportional Foreign Securities Reserve System. Show Answer Correct Answer: A) Minimum Reserve System. 10. Rupee was devalued by what percent in July 1991 ? [MP PCS 1990] A) 18. B) 20. C) 22. D) 25. Show Answer Correct Answer: B) 20. 11. The FSR attributes majority of decline in foreign reserves to: A) Valuation losses. B) Intervention in FX market. C) Sale of Foreign currency assets. D) Write-off of Foreign currency assets. Show Answer Correct Answer: A) Valuation losses. 12. Inflation implies: [Railways 1994] A) Rise in budget deficit. B) Rise in money supply. C) Rise in general price index. D) Rise in prices of consumer goods. Show Answer Correct Answer: C) Rise in general price index. 13. Which of the following factors contributes to an inflationary trend? A) 15% fall in production of industrial goods. B) 15% increase in prices of agricultural products. C) 15% increase in supply of money in the market. D) None of these. Show Answer Correct Answer: C) 15% increase in supply of money in the market. 14. Minimum inflation in post economic reform was in : A) 1999-2000. B) 2000-01. C) 2001-02. D) 2002-03. Show Answer Correct Answer: A) 1999-2000. 15. One-rupee currency notes bear the signature of: A) Prime Minister of India. B) President of India. C) Finance Minister of India. D) Finance Secretary of India. Show Answer Correct Answer: D) Finance Secretary of India. 16. As per FSR, India's share of dollar-denominated debt has been: A) Increasing. B) Falling. C) Remained stagnant. D) Rapidly increasing. Show Answer Correct Answer: B) Falling. 17. SEBI was primarily set up to A) Regulate the activities of the merchant banks. B) To control the operations of mutual funds. C) To work as a regulator of the stock exchange activities. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. 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 : [IFS 1990] A) Inflation. B) Devaluation. C) Deflation. D) Demonetization. Show Answer Correct Answer: A) Inflation. 19. As per FSR, Banks have also been drawing down their high-quality-liquid assets (HQLAs) to fund credit growth. This will most likely ..... Liquidity Coverage Ratio (LCR): A) Increase. B) Decrease. C) No Impact on. D) None of the above. Show Answer Correct Answer: B) Decrease. 20. The States' debt does not include: A) Loans from State Bank of India. B) Loans from the Central Government. C) Provident Funds. D) Treasury bills issued to international financial institutions. Show Answer Correct Answer: D) Treasury bills issued to international financial institutions. ← PreviousNext →Related QuizzesMonetary QuizzesCurrency And Inflation Quiz 1Currency And Inflation Quiz 3Currency And Inflation Quiz 4Currency And Inflation Quiz 5 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books