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
Correct Answer :
D. adverse effect on speculation
Related Questions
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
One-rupee currency notes bear the signature of:
Prime Minister of India
President of India
Finance Minister of India
Finance Secretary of India
Of the various ways of financing government's investment expenditure, the least inflationary is : [PCS 1994]
foreign aid
deficit financing
taxation
public borrowing
Stagflation implies a case of: [CDS 1992]
galloping inflation
recession plus inflation
adverse balance of trade
rising wages and employment
How many languages are used on a ten rupee note?
2
7
10
15
M3 includes:
M1 + T.D
M1 + post office saving deposit
M1 +- post office total deposit
M1 + national saving certificate
Black money is :
counterfeit currency
illegally earned money
money earned through underhand deals
income on which payment of tax is usually evaded
Broad money in India is :
M1
M2
M3
M4
Which of the following governmental steps has proved relatively effective in controlling the double digit rate of inflation in the Indian economy during recent years?
Containing budgetory deficits and unproductive expenditure
Streamlined public distribution system
Enhanced rate of production of all consumer goods
Pursuing an export-oriented strategy
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
An essential attribute of inflation is:
fall in production
increase in prices
absence of black market
presence of black market
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
The Indian Rupee is fully convertible:
1. In respect of Current Account of Balance of Payments
2. In respect of Capital Account of Balance of Payments
3. Into Gold
Which of these statements is/are correct ?
1 only
3 only
1 and 2 only
1, 2 and 3
Monetary policy is regulated by:
money lenders
Central Bank
private entrepreneurs
Government policy
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
To meet the growing needs for coins in the country, where does the Government propose to set up another mint?
Nasik
Hoshangabad
Dewas
Noida
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
For international payments, the Indian currency is linked to :
American Dollar
British Sterling
Gold Standard
None of the above
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
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
'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
Inflation can be contained by:
surplus budget
increase in taxation
reduction in public expenditure
all the above
The period of high inflation and low economic growth is termed as: [RRB 1992]
stagnation
take-off stage in economy
stagflation
none of these
Among the remedies of inflation we cannot include:
better capacity utilisation
lowering bank rate
reducing budgetary deficit
an efficient public distribution system
The States' debt does not include:
loans from State Bank of India
loans from the Central Government
Provident Funds
treasury bills issued to international financial institutions
When was decimal coinage introduced in India? [CDS 2005]
1947
1950
1957
1960
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
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
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