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