Consider the following statement:
The price of any currency in international market is determined by the:
1. WTO
2. Demand for goods/services provided by the country concerned
3. Inflation differential between the country concerned and its major trading partners
4. Stability of the government of the concerned country
Of these statements:
1, 2, 3, and 4 are correct
1, 2 and 4 are correct
1, 3 and 4 are correct
2, 3 and 4 are correct
Correct Answer :
D. 2, 3 and 4 are correct
Related Questions
Inflation implies: [Railways 1994]
rise in budget deficit
rise in money supply
rise in general price index
rise in prices of consumer goods
A steady increase in the general level of prices as a result of excessive increase in aggregate demand as compared to aggregate supply is termed as : [CDS 1999]
demand-pull inflation
cost-push inflation
stagflation
structural inflation
Which of the following are definite implications of a fall in inflation?
1. Prices have fallen
2. Prices are increasing more slowly than before
3. Food supply has increased
4. There is industrial stagnation
1 and 3
1 only
2 only
1, 3 and 4
Which of the following prints currency notes of the denomination of Rs. 100?
The Bank Note Press, Dewas
The Indian Security Press, Nasik Road
The Security Printing Press, Hyderabad
All of the above
There are three major groups of commodities in the Wholesale Price Index. These are:
1. primary articles
2. fuel, power, light and lubricants
3. manufactured products
4. food articles and industrial raw materials
1, 2 and 3
2, 3 and 4
1, 3 and 4
1 and 3
Which of the following is incorrect about convertibility?
The exchange rate should be determined by the forces of demand and supply of the currency
The exchange rate' would indicate the strength of the economy
It would discourage black market transactions
The RBI will be a direct player now rather than being an indirect one
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
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
Which of the following Mahatma Gandhi series of currency notes issued by the RBI has ecology depicted on it? [SSC Graduate 2003]
Rs. 500
Rs. 100
Rs. 50
Rs. 5
Who among the following are not protected against inflation.? [Railways 1992]
Salaried class
Industrial workers
Pensioners
Agricultural farmers
Convertibility of the rupee implies: [IAS 1994]
being able to convert rupee notes into gold
freely permitting the conversion of rupee to other major currencies and vice versa
allowing the value of the rupee to be fixed by market forces
developing an international market for currencies in India
The inflation experienced in the country at present is:
galloping inflation
secondary inflation
unrealistic inflation
cost-push inflation
A high rate of inflation tends to worsen balance of payments because:
prices of imported goods rise
prices of exported goods rise making exports less competitive
prices of imported goods fall and hence more is imported
prices of exported goods fall and hence less amount is obtained in terms of foreign exchange
Of the various ways of financing government's investment expenditure, the least inflationary is : [PCS 1994]
foreign aid
deficit financing
taxation
public borrowing
Who among the following is most benefitted from inflation? [IAS 1989]
Government pensioners
Creditors
Savings Bank Account holders
Debtors
In the last one decade, which one among the following sectors has attracted the highest Foreign Direct Investment inflows into India? [IAS 2004]
Chemicals other than fertilizers
Services sector
Food processing
Telecommunication
Inflation is caused as a result of:
increase in money supply
fall in production
increase in money supply without a corresponding increase in production
decrease in money supply without a corresponding decrease in production
Rupee was devalued by what percent in July 1991 ? [MP PCS 1990]
18
20
22
25
Which of the following mints undertakes refining of gold for licensed gold dealers and production of medals for defence services?
The Hyderabad Mint
The Mumbai Mint
The Kolkata Mint
None of the above
M1 includes:
currency with public
demand deposit with bank
other deposits with RBI
all of the above
Deficit financing creates additional paper currency to fill the gap between expenditure and revenue. This device aims at economic development but if it fails, it generates : [IFS 1990]
inflation
devaluation
deflation
demonetization
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
Black money is :
counterfeit currency
illegally earned money
money earned through underhand deals
income on which payment of tax is usually evaded
The effect of inflation on tax revenue results in a situation known as :
stagflation
fiscaldrag
reflation
disinflation
Consider the following statements:
The price of any currency in international market is decided by the [IAS 1998]
1. World Bank
2. Demand for goods/services provided by the country concerned
3. stability of the government of the concerned country
4. economic potential of the country in question
Of these statements:
1, 2, 3 and 4 are correct
2 and 3 are correct
3 and 4 are correct
1 and 4 are correct
The special paper required for printing of currency notes by the Security Presses In the country is manufactured at :
Hyderabad
Kolkata
Hoshangabad
Dewas
Monetary policy is regulated by:
money lenders
Central Bank
private entrepreneurs
Government policy
How many languages are used on a ten rupee note?
2
7
10
15
Which of the following accounts for Cost-Push Inflation?
Increase in money supply
Increase in indirect taxation
Increase in population
Increase in non-plan expenditure
Among the remedies of inflation we cannot include:
better capacity utilisation
lowering bank rate
reducing budgetary deficit
an efficient public distribution system