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
Correct Answer :
B. 2 and 3 are correct
Related Questions
An essential attribute of inflation is:
fall in production
increase in prices
absence of black market
presence of black market
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
Inflationary Gap is a situation characterized by:
excess of Aggregate Demand over Aggregate Supply at the full employment level
gap between Galloping Inflation and Runaway Inflation
Inflation coupled with recession
Inflation that usually prevails in a developing country
To meet the growing needs for coins in the country, where does the Government propose to set up another mint?
Nasik
Hoshangabad
Dewas
Noida
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
M1 includes:
currency with public
demand deposit with bank
other deposits with RBI
all of the above
Inflation implies: [Railways 1994]
rise in budget deficit
rise in money supply
rise in general price index
rise in prices of consumer goods
The terms of economics, the recession occurring two times with a small gap in between is known as [Bank of India PO 2010]
Double Deflation
Deflation
Deep Recession
None of these
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
Which of the following factors contributes to an inflationary trend?
15% fall in production of industrial goods
15% increase in prices of agricultural products
15% increase in supply of money in the market
none of these
Which of the following can be used for checking inflation temporarily?
Increase in wages
Decrease in money supply
Decrease in taxes
None of the above
The effect of inflation on tax revenue results in a situation known as :
stagflation
fiscaldrag
reflation
disinflation
The special paper required for printing of currency notes by the Security Presses In the country is manufactured at :
Hyderabad
Kolkata
Hoshangabad
Dewas
Black money is :
counterfeit currency
illegally earned money
money earned through underhand deals
income on which payment of tax is usually evaded
Who among the following are not protected against inflation.? [Railways 1992]
Salaried class
Industrial workers
Pensioners
Agricultural farmers
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
Hard Currency is defined as currency:
which can hardly be used for international transactions
which is used in times of war
which loses its value very fast
traded in foreign exchange market for which demand is persistently relative to the supply
The period of high inflation and low economic growth is termed as: [RRB 1992]
stagnation
take-off stage in economy
stagflation
none of these
Which of the following groups suffer the most from inflation? [CPO SI 2003]
Debtors
Creditors
Business class
Holders of real assets
How many languages are used on a ten rupee note?
2
7
10
15
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
Minimum inflation in post economic reform was in :
1999-2000
2000-2001
2001-2002
2002-2003
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
1 only
2 and 3
1 and 2
1 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
Rising prices lead to all but one of the following:
promotion of inequalities
generation of black money
adverse effect on balance of payments
adverse effect on speculation
A very rapid growth in prices in which money loses its value to the point where even barter may be preferable is known as:
inflation
hyper-inflation
deflation
disinflation
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
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]
USD
JPY
Euro
None of these
The best means of saving during inflation is to keep:
money
Government Bonds
equity
time deposits with Banks
The Issue Department of the RBI maintains a _______ against printing of notes:
Minimum Reserve System
Proportional Reserve System
Proportional Gold Reserve System
Proportional Foreign Securities Reserve System