Q.1)-The relationship between the value of money and the price level is an economy is-
- Direct
- Inverse
- Proportional
- Stable
Q.2)-The Result of cost push inflation is-
- Hindrances in economic development increase
- Adverse effect on Balance on Payment
- Hindrance in development
- All of the above
Q.3)-During periods of inflation, tax rates should-
- Increase
- Decrease
- Remain constant
- Fluctuate
Q.4)-Which of the following groups suffer the most from inflation?
- Debtors
- Creditors
- Buisness Class
- Holder of Real Assets
Q.5)-Inflation can be checked by-
- Increasing exports
- Increasing money supply
- Increasing government expenditure
- Decreasing money supply
Q.6)-Government securities are considered liquid because they are-
- Backed by the government trasure
- Convertible into other type of saving deposits
- Quickly and easily marketable
- Stable in value
Q.7)-Inflation is caused by-
- Increase in supply of goods
- Increase in cash with the government
- Decrease in money supply
- Increase in money supply
Q.8)-The Central Statistical Organisation (CSO) provides data under a new revised series in which the base year is taken as-
- 1960 - 61
- 2004-05
- 1980-81
- 1990-91
Q.9)-Which is NOT a measure undertaken by government to check inflation?
- Increase in consumption
- Increase in production
- Reduction in Deficit financing
- Taxation measures
Q.10)-Which of the following is a consequence of infaltionary price rise?
- Obstacle in development
- Increase in economic inequalities
- Adverse effect on the balance of payment
- All of these