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The effect of inflation on tax revenue results in a situation known as :


A) (a) stagflation

B) (b) fiscal drag

C) (c ) reflation

D) (d) disinflation

Correct Answer:
B) (b) fiscal drag


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




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1). Inflation is caused as a result of :
A). (a) increase in money supply
B). (b) fall in production
C). (c ) increase in money supply without a corresponding decrease in production
D). (d) decrease in money supply without a corresponding decrease in production
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2). Which of the following accounts for Cost-Push Inflation?
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B). (b) Increase in indirect taxation
C). (c ) Increase in population
D). (d) Increase in non-plan expenditure
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B). (b) secondary inflation
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B). (b) Streamlined public distribution system
C). (c ) Enhanced rate of production of all consumer goods
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6). Devaluation' means :
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B). lowering of the value of one currency in comparison of some foreign currency
C). making rupee dearer in comparison to some foreign currency
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8). One-rupee currency notes bear the signature of :
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B). President of India
C). Finance Minister of India
D). Finance Secretary of India
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9). Ten rupee notes bear the signature of :
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B). Finance Minister
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10). When was the decimal system of currency introduced in India?
A). 1948
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