The effect of inflation on tax revenue results in a situation known as :
stagflation
fiscaldrag
reflation
disinflation
Correct Answer :
B. fiscaldrag
Related Questions
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 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
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 is wrongly matched?
Depression: Insufficient demand causing large scale unemployment of men and machinery over a long period of time
Recession: Reduction in demand and production/ investment over a short period of time
Stagflation: slow pace of economic activity due to falling prices
Boom: Rapid and all-round spurt in economic activity
Stagflation implies a case of: [CDS 1992]
galloping inflation
recession plus inflation
adverse balance of trade
rising wages and employment
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
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
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
Broad money in India is :
M1
M2
M3
M4
M1 includes:
currency with public
demand deposit with bank
other deposits with RBI
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
The period of high inflation and low economic growth is termed as: [RRB 1992]
stagnation
take-off stage in economy
stagflation
none of these
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
Of the various ways of financing government's investment expenditure, the least inflationary is : [PCS 1994]
foreign aid
deficit financing
taxation
public borrowing
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
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
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 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
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
The special paper required for printing of currency notes by the Security Presses In the country is manufactured at :
Hyderabad
Kolkata
Hoshangabad
Dewas
M3 includes:
M1 + T.D
M1 + post office saving deposit
M1 +- post office total deposit
M1 + national saving certificate
When was decimal coinage introduced in India? [CDS 2005]
1947
1950
1957
1960
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
Who among the following are not protected against inflation.? [Railways 1992]
Salaried class
Industrial workers
Pensioners
Agricultural farmers
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
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
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
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
An essential attribute of inflation is:
fall in production
increase in prices
absence of black market
presence of black market
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