The best means of saving during inflation is to keep :


A) money

B) Government Bonds

C) equity

D) time deposits with Banks

Correct Answer:
A) money


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








Comments

No comments available




Similar Questions
1). 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
2). Stagflation implies a case of :
A). galloping inflation
B). recession plus inflation
C). adverse balance of trade
D). rising wages and employment
-- View Answer
3). Inflation can be contained by :
A). surplus budget
B). increase in taxation
C). reduction in public expenditure
D). all the above
-- View Answer
4). 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
5). 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


6). 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
7). 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
8). 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
9). 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
10). Inflationary Gap is a situation characterised by :
A). excess of Aggregate Demand over Aggregate Supply at the full employment
level
B). gap between Galloping Inflation and Runaway Inflation
C). Inflation coupled with recession
D). Inflation that usually prevails in a developing country
-- View Answer