An essential attribute of inflation is :


A) fall in production

B) increase in prices

C) absence of black market

D) presence of black market

Correct Answer:
B) increase in prices


Part of solved Currency Inflation questions and answers : General Knowledge >> Economy >> Currency Inflation








Comments

No comments available




Similar Questions
1). The best means of saving during inflation is to keep :
A). money
B). Government Bonds
C). equity
D). time deposits with Banks
-- View Answer
2). 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 these3
-- View Answer
3). Stagflation implies a case of :
A). galloping inflation
B). recession plus inflation
C). adverse balance of trade
D). rising wages and employment
-- View Answer
4). Inflation can be contained by :
A). surplus budget
B). increase in taxation
C). reduction in public expenditure
D). all the above
-- View Answer
5). 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). demonetisation
-- View Answer


6). 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
-- View Answer
7). 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
-- View Answer
8). 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
-- View Answer
9). Among the remedies of inflation we cannot include :
A). better capacity utilisation
B). lowering bank rate
C). reducing budgetary deficit
D). an efficient public distribution system
-- View Answer
10). 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
-- View Answer