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
Correct Answer :
C. increase in money supply and fall in production
Related Questions
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
The effect of inflation on tax revenue results in a situation known as :
stagflation
fiscaldrag
reflation
disinflation
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
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
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
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
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 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
Which of the following groups suffer the most from inflation? [CPO SI 2003]
Debtors
Creditors
Business class
Holders of real assets
Of the various ways of financing government's investment expenditure, the least inflationary is : [PCS 1994]
foreign aid
deficit financing
taxation
public borrowing
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
Ten rupee notes bear the signature of:
President
Finance Minister
Secretary, Ministry of Finance
Governor, Reserve Bank of India
Monetary policy is regulated by:
money lenders
Central Bank
private entrepreneurs
Government policy
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
Stagflation implies a case of: [CDS 1992]
galloping inflation
recession plus inflation
adverse balance of trade
rising wages and employment
Under the Constitution, the power to raise and disburse public funds:
has been vested in Union Government
has been divided between the Union and State Governments
has been given to the Finance Commission
has not been given to anyone
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
When was decimal coinage introduced in India? [CDS 2005]
1947
1950
1957
1960
M1 includes:
currency with public
demand deposit with bank
other deposits with RBI
all of the above
Which of the following is/are treated as artificial currency? [IAS 2010]
ADR
GDR
SDR
Both ADR and SDR
One-rupee currency notes bear the signature of:
Prime Minister of India
President of India
Finance Minister of India
Finance Secretary of India
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
Inflation can be contained by:
surplus budget
increase in taxation
reduction in public expenditure
all the above
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
Black money is :
counterfeit currency
illegally earned money
money earned through underhand deals
income on which payment of tax is usually evaded
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
Rupee was devalued by what percent in July 1991 ? [MP PCS 1990]
18
20
22
25
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
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
When was the decimal system of currency introduced in India?
1948
1950
1954
1957