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
Correct Answer :
B. 2 only
Related Questions
Black money is :
counterfeit currency
illegally earned money
money earned through underhand deals
income on which payment of tax is usually evaded
Who among the following is most benefitted from inflation? [IAS 1989]
Government pensioners
Creditors
Savings Bank Account holders
Debtors
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
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
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
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
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 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 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
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
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
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
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
'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
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
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
Which of the following is/are treated as artificial currency? [IAS 2010]
ADR
GDR
SDR
Both ADR and SDR
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
Among the remedies of inflation we cannot include:
better capacity utilisation
lowering bank rate
reducing budgetary deficit
an efficient public distribution system
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 best means of saving during inflation is to keep:
money
Government Bonds
equity
time deposits with Banks
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
Inflation implies: [Railways 1994]
rise in budget deficit
rise in money supply
rise in general price index
rise in prices of consumer goods
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
Inflation can be contained by:
surplus budget
increase in taxation
reduction in public expenditure
all the above
The effect of inflation on tax revenue results in a situation known as :
stagflation
fiscaldrag
reflation
disinflation
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
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
M3 includes:
M1 + T.D
M1 + post office saving deposit
M1 +- post office total deposit
M1 + national saving certificate