Currency and Inflation MCQ Question with Answer

Currency and Inflation MCQ with detailed explanation for interview, entrance and competitive exams. Explanation are given for understanding.

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Question No : 1
Amongst the currency quotes USD/JPY, USD/Euro and USD/CAD, which one of the following is referred as the base currency for quotes? [Punjab & Sindh Bank 2011]

None of these

Question No : 2
Who among the following are not protected against inflation.? [Railways 1992]

Salaried class
Industrial workers
Agricultural farmers

Question No : 3
M1 includes:

currency with public
demand deposit with bank
other deposits with RBI
all of the above

Question No : 4
The sum of which of the following constitutes Broad Money in India? [IAS 1997]
1. Currency with the public
2. Demand deposits with banks
3. Time deposits with banks
4. Other deposits with RBI
Choose the correct answer using the codes given below:

1 and 2
1, 2 and 3
1, 2, 3 and 4
1, 2 and 4

Question No : 5
The situation with increasing unemployment and inflation is termed as: [CPO AC 2003]

galloping inflation

Question No : 6
Consider the following statements about Wholesale Price Index (WPI) :
1. It captures the price movement extensively and is, therefore, taken as an indicator of inflation.
2. The office of the Economic adviser (OEA) is entrusted with the function of compilation and publication of the weekly wholesale price index number in India.
Which of the statements given above is/are correct? [CDS 2009]

I only
II only
Both I and II
Neither I nor II

Question No : 7
How many languages are used on a ten rupee note?