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
Correct Answer :
C. Stagflation: slow pace of economic activity due to falling prices
Related Questions
Minimum inflation in post economic reform was in :
1999-2000
2000-2001
2001-2002
2002-2003
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
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
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
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 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
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
M1 includes:
currency with public
demand deposit with bank
other deposits with RBI
all of the above
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
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
Who among the following are not protected against inflation.? [Railways 1992]
Salaried class
Industrial workers
Pensioners
Agricultural farmers
Black money is :
counterfeit currency
illegally earned money
money earned through underhand deals
income on which payment of tax is usually evaded
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
Monetary policy is regulated by:
money lenders
Central Bank
private entrepreneurs
Government policy
The situation with increasing unemployment and inflation is termed as: [CPO AC 2003]
hyperinflation
galloping inflation
stagflation
reflation
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
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
Among the remedies of inflation we cannot include:
better capacity utilisation
lowering bank rate
reducing budgetary deficit
an efficient public distribution system
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
How many languages are used on a ten rupee note?
2
7
10
15
An essential attribute of inflation is:
fall in production
increase in prices
absence of black market
presence of black market
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
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
Of the various ways of financing government's investment expenditure, the least inflationary is : [PCS 1994]
foreign aid
deficit financing
taxation
public borrowing
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
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
The special paper required for printing of currency notes by the Security Presses In the country is manufactured at :
Hyderabad
Kolkata
Hoshangabad
Dewas
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