General Knowledge >> Economy >> Currency Inflation
11). The best means of saving during inflation is to keep :
A). money B). Government Bonds
C). equity D). time deposits with Banks
12). 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
13). Stagflation implies a case of :
A). galloping inflation B). recession plus inflation
C). adverse balance of trade D). rising wages and employment
14). Inflation can be contained by :
A). surplus budget B). increase in taxation
C). reduction in public expenditure D). all the above
15). 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
16). 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
17). 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
18). 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
19). 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
20). 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