Currency and Inflation MCQ Question with Answer

Question No : 8
Consider the following statements:
Full convertibility of the rupee may mean: [IAS 2002]
1. its free float with other international currencies.
2. its direct exchange with any other international currency at any prescribed place inside and outside the country.
3. it acts just like any other international currency.
Which of these statements are correct?

Question No : 9
Devaluation of currency by a country is meant to lead to :
1. expansion of import trade
2. promotion of import substitution
3. expansion of export trade

Question No : 10
In the last one decade, which one among the following sectors has attracted the highest Foreign Direct Investment inflows into India? [IAS 2004]

Question No : 11
Under the Constitution, the power to raise and disburse public funds:

Question No : 12
An essential attribute of inflation is:

Question No : 13
The effect of inflation on tax revenue results in a situation known as :

Question No : 14
Among the remedies of inflation we cannot include: