• 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 I money supply and fall in production

    Correct Answer:
    C) increase in money supply and fall in production

Similar Questions
1). Who among the following is most benefitted from inflation?
A). Government pensioners B). Creditors
C). Savings Bank Account holders D). Debtors
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2). Which of the following groups suffer the most from inflation?
A). Debtors B). Creditors
C). Business class D). Holders of real assets
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3). Minimum inflation in post economic reform was in :
A). 1999-2000 B). 2000-01
C). 2001-02 D). 2002-03
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4). Inflation implies :
A). rise in budget deficit B). rise in money supply
C). rise in general price index D). rise in prices of consumer goods
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5). The situation with increasing unemployment and inflation is termed as :
A). hyperinflation B). galloping inflation
C). stag inflation D). reflation
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6). 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
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7). Which of the following can be used for checking inflation temporarily?
A). Increase in wages B). Decrease in money supply
C). Decrease in taxes D). None of these
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8). Who among the following are not protected against inflation?
A). Salaried class B). Industrial workers
C). Pensioners D). Agricultural farmers
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9). An essential attribute of inflation is :
A). fall in production B). increase in prices
C). absence of black market D). presence of black market
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10). The best means of saving during inflation is to keep :
A). money B). Government Bonds
C). equity D). time deposits with Banks
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