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
Correct Answer :
D. The RBI will be a direct player now rather than being an indirect one
Related Questions
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
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 accounts for Cost-Push Inflation?
Increase in money supply
Increase in indirect taxation
Increase in population
Increase in non-plan expenditure
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
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
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
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
Inflation can be contained by:
surplus budget
increase in taxation
reduction in public expenditure
all the above
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
Who among the following are not protected against inflation.? [Railways 1992]
Salaried class
Industrial workers
Pensioners
Agricultural farmers
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 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
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
A steady increase in the general level of prices as a result of excessive increase in aggregate demand as compared to aggregate supply is termed as : [CDS 1999]
demand-pull inflation
cost-push inflation
stagflation
structural inflation
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
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
Of the various ways of financing government's investment expenditure, the least inflationary is : [PCS 1994]
foreign aid
deficit financing
taxation
public borrowing
The inflation experienced in the country at present is:
galloping inflation
secondary inflation
unrealistic inflation
cost-push inflation
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
One-rupee currency notes bear the signature of:
Prime Minister of India
President of India
Finance Minister of India
Finance Secretary of India
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
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
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
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
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
Stagflation implies a case of: [CDS 1992]
galloping inflation
recession plus inflation
adverse balance of trade
rising wages and employment
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
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