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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 : 29
'Devaluation' means: [RRB 1992]

converting rupee into gold
lowering of the value of one currency in comparison of some foreign currency
making rupee dealer in comparison to some foreign currency
None of these

Question No : 30
Inflation implies: [Railways 1994]

rise in budget deficit
rise in money supply
rise in general price index
rise in prices of consumer goods

Question No : 31
The special paper required for printing of currency notes by the Security Presses In the country is manufactured at :

Hyderabad
Kolkata
Hoshangabad
Dewas

Question No : 32
Inflation can be contained by:

surplus budget
increase in taxation
reduction in public expenditure
all the above

Question No : 33
Black money is :

counterfeit currency
illegally earned money
money earned through underhand deals
income on which payment of tax is usually evaded

Question No : 34
Among the causes of inflation can be listed:
1. slow growth in agricultural output
2. increasing non-development expenditure of Government
3. rapid population growth
4. rapid growth in costly imports

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

Question No : 35
Which of the following measures should be taken when an economy is going through inflationary pressures?
1. The direct taxes should be increased.
2. The interest rate should be reduced.
3. The public spending should be increased
Select the correct answer using the code given below: [CDS 2012]

1 only
2 only
2 and 3
1 and 2