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
Correct Answer :
A. excess of Aggregate Demand over Aggregate Supply at the full employment level
Related Questions
The inflation experienced in the country at present is:
galloping inflation
secondary inflation
unrealistic inflation
cost-push inflation
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
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
When was the decimal system of currency introduced in India?
1948
1950
1954
1957
To meet the growing needs for coins in the country, where does the Government propose to set up another mint?
Nasik
Hoshangabad
Dewas
Noida
Inflation can be contained by:
surplus budget
increase in taxation
reduction in public expenditure
all the above
M3 includes:
M1 + T.D
M1 + post office saving deposit
M1 +- post office total deposit
M1 + national saving certificate
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
How many languages are used on a ten rupee note?
2
7
10
15
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?
1 and 2
1 and 3
2 and 3
1, 2 and 3
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
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
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
The effect of inflation on tax revenue results in a situation known as :
stagflation
fiscaldrag
reflation
disinflation
One-rupee currency notes bear the signature of:
Prime Minister of India
President of India
Finance Minister of India
Finance Secretary of India
'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
Which of the following Mahatma Gandhi series of currency notes issued by the RBI has a drawing of the 'Parliament House' depicted on it? [SSC Graduate 2003]
Rs. 500
Rs. 100
Rs. 50
Rs. 10
Black money is :
counterfeit currency
illegally earned money
money earned through underhand deals
income on which payment of tax is usually evaded
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
Ten rupee notes bear the signature of:
President
Finance Minister
Secretary, Ministry of Finance
Governor, Reserve Bank of India
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
Stagflation implies a case of: [CDS 1992]
galloping inflation
recession plus inflation
adverse balance of trade
rising wages and employment
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
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
Rupee was devalued by what percent in July 1991 ? [MP PCS 1990]
18
20
22
25
The cause of inflation is:
increase in money supply
fall in production
increase in money supply and fall in production
decrease in money supply and fall in production
Broad money in India is :
M1
M2
M3
M4
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
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