Banking Marketing Aptitude Money and Inflation / पैसा और महंगाई Question Bank

done Money and Inflation Total Questions - 18

• question_answer1)
  When the rate of inflation increases:
  A)
  Purchasing power of money increased done clear
  B)
        Purchasing power of money decreases done clear
  C)
        Value of money decreases done clear
  D)
        Purchasing power of money remains unaffected done clear
  E)
        Amount of money in circulation decreases done clear
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• question_answer2)
  Which of the following is not considered a money market instrument?                                                [IBPS P.O. 2011]
  A)
  Treasury bills done clear
  B)
           Repurchase agreement done clear
  C)
        Commercial paper       done clear
  D)
            Certificate of deposit done clear
  E)
        Shares and bonds done clear
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• question_answer3)
  Which of the following is not a "Money market Instrument"?
  A)
   Treasury Bills    done clear
  B)
              Commercial papers done clear
  C)
         Certificate of Deposits   done clear
  D)
           Equity shares done clear
  E)
         None of these  done clear
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• question_answer4)
  The cause of deflation is?
  A)
  Lack of goods and services as compared to money supply done clear
  B)
        Lack of imports as compared to exports done clear
  C)
        Lack of money supply as compared to goods and services done clear
  D)
        None of these done clear
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• question_answer5)
  The Whole sale Price Index is divided into five main commodity groups. Which of the following is not considered separately as a group while calculating WPI?
  A)
  Service by public sector units done clear
  B)
        Agriculture done clear
  C)
        Import and export     done clear
  D)
            Mining done clear
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• question_answer6)
  The RBI Governor, in one of his speeches, made a mention of inflation index and said "The problem in India is that which inflation index to target as there are several such indices". Which of the following state-mints is CORRECT in this regard?
  A)
  There is one WPI index and four CPI indices done clear
  B)
        There are four WPI indices and one CPI index done clear
  C)
        There are two WPI Indices and two CPI indices done clear
  D)
        There is one WPI index and one CPI index   done clear
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• question_answer7)
  Inflation redistributes income and wealth in favor of?
  A)
   Pensioners      done clear
  B)
                     Poor done clear
  C)
         Middle class      done clear
  D)
                   Rich   done clear
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• question_answer8)
  During period of inflation, tax rates should?
  A)
   Increase done clear
  B)
            Decrease done clear
  C)
         Remain constant            done clear
  D)
          Fluctuate done clear
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• question_answer9)
  The term stagflation refers to a situation where?                                                                 [SSC 2009]
  A)
  Growth has no relation with the change in prices done clear
  B)
        Rate of growth and prices both are decreasing done clear
  C)
        Rate of growth in faster than the rate of price increase done clear
  D)
        Rate of growth is slower than the rate of price increase done clear
  E)
     done clear
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• question_answer10)
     Devaluation of currency leads to?
  A)
  Expansion of export trade    done clear
  B)
        Contraction of import trade done clear
  C)
        Expansion of import substitution done clear
  D)
      All of the above [SSCS.O. 2008] done clear
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• question_answer11)
  When too much money is choosing two few goods, the situation is?
  A)
   Deflation done clear
  B)
                      Inflation done clear
  C)
         Recession          done clear
  D)
          Stagflation done clear
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• question_answer12)
  The process of curing inflation by reducing money supply is called?                                      [SSC S.0.2008]
  A)
   Cost push inflation   done clear
  B)
                 Demand pull inflation done clear
  C)
         Disinflation done clear
  D)
                        Reflation      done clear
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• question_answer13)
    The outcome of "devaluation of currency" is?                                                                    [SSC Tax Assistant 2006]
  A)
  Increased export and improvement in balance of payment done clear
  B)
        Increased export and foreign reserve deficiency done clear
  C)
        Increased import and improvement in balance of payment done clear
  D)
        Increased export and import     done clear
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• question_answer14)
       The major aim of devaluation is to?
  A)
  Encourage imports done clear
  B)
        Encourage exports done clear
  C)
        Encourage both exports & imports done clear
  D)
        Discourage both exports and imports done clear
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• question_answer15)
  CP is an unsecured money market instrument issued in the form of a promissory note. In the abbreviation CP letter 'P" stands for?                                                                                                                 [IBPS 2014]
  A)
   Paper done clear
  B)
                        Portfolio   done clear
  C)
          Payment           done clear
  D)
            Position done clear
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• question_answer16)
  One rupee currency note bears the signature of?                                                    [SBI Clerk 2014]
  A)
  President of India done clear
  B)
           Finance secretary done clear
  C)
        Finance Minister      done clear
  D)
               Commerce Minister done clear
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• question_answer17)
  In the global financial market 'CP7 is a money market instrument issued as an unsecured promissory note with a fixed maturity of no more than 270 days. The alphabet 'C' in the abbreviation CP stands for?                                                                                                                         [NIACL Asst. 2015]
  A)
   Certificate done clear
  B)
                        Capital     done clear
  C)
         Commercial      done clear
  D)
            Commodity done clear
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• question_answer18)
  Which is not a measure undertaken by government to check inflation?
  A)
  Increase in consumption   done clear
  B)
        Increase in production done clear
  C)
        Reduction in deficit financing done clear
  D)
        Taxation measures          done clear
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