SSC CGL ECONOMICS Currency / Inflation
1. The cause of inflation is :
(a) increase in money supply
(b) fall in production
(c) increase in money supply and fall in production
(d) decrease in money supply and fall in production
2. Inflation implies :
(a) rise in budget deficit
(b) rise in money supply
(c) rise in general price index
(d) rise in prices of consumer goods
3. The situation with increasing unemployment and inflation is termed as :
(a) hyperinflation (b) galloping inflation
(c) stagflation (d) reflation
4. Which of the following can be used for checking inflation temporarily?
(a) Increase in wages
(b) Decrease in money supply
(c) Decrease in taxes
(d) None of these
5. An essential attribute of inflation is :
(a) fall in production
(b) increase in prices
(c) absence of black market
(d) presence of black market
6. The period of high inflation and low economic growth is termed as :
(a) stagnation
(b) take-off stage in economy
(c) stagflation
(d) none of these
7. Stagflation implies a case of :
(a) galloping inflation
(b) recession plus inflation
(c) adverse balance of trade
(d) rising wages and employment
8. 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:
(a) demand-pull inflation (b) cost-push inflation
(c) stagflation (d) structural inflation
9. A very rapid growth in prices in which money loses its value to the point where even barter may be preferable is known as :
(a) inflation (b) hyper-inflation
(c) deflation (d) disinflation
10. Inflationary Gap is a situation characterised by:
(a) excess of Aggregate Demand over Aggregate Supply at the full employment level
(b) gap between Galloping Inflation and Runaway Inflation
(c) Inflation coupled with recession
(d) Inflation that usually prevails in a developing country
11. Which of the following is wrongly matched?
(a) Depression Insufficient demand causing large scale unemployment of men and machinery over a long period of time
(b) Recession Reduction in demand and production/investment over a short period of time
(c) Stagflation slow pace of economic activity due to falling prices
(d) Boom Rapid and all-round spurt in economic activity
12. The inflation experienced in the country at present is :
(a) galloping inflation (b) secondary inflation
(c) unrealistic inflation (d) cost-push inflation
13. ‘Devaluation’ means :
(a) converting rupee into gold
(b) lowering of the value of one currency in comparison of some foreign currency
(c) making rupee dearer in comparison to some foreign currency
(d) None of these
14. Monetary policy is regulated by:
(a) money lenders
(b) central Bank
(c) private entrepreneurs
(d) Government policy
15. One-rupee currency notes bear the signature of:
(a) Prime Minister of India
(b) President of India
(c) Finance Minister of India
(d) Finance Secretary of India
16. Ten rupee notes bear the signature of :
(a) President
(b) Finance Minister
(c) Secretary, Ministry of Finance
(d) Governor, Reserve Bank of India
17. When was the decimal system of currency introduced in India?
(a) 1948 (b) 1950
(c) 1954 (d) 1957
18. Which of the following prints currency notes of the denomination of Rs. 100?
(a) The Bank Note Press, Dewas
(b) The Indian Security Press, Nasik Road
(c) The Security Printing Press, Hyderabad
(d) All the above
19. The special paper required for printing of currency notes by the Security Presses in the country is manufactured at :
(a) Hyderabad (b) Kolkata
(c) Hoshangabad (d) Dewas
20. Which of the following mints undertakes refining of gold for licensed gold dealers and production of medals for defence services ?
(a) The Hyderabad Mint (b) The Mumbai Mint
(c) The Kolkata Mint (d) None of these
21. To meet the growing needs for coins in the country, where does the Government propose to set up another mint ?
(a) Nasik (b) Hoshangabad
(c) Dewas (d) Noida
22. How many languages are used on a ten rupee note ?
(a) 2 (b) 7
(c) 10 (d) 15
23. Convertibility of the rupee implies :
(a) being able to convert rupee notes into gold
(b) freely permitting the conversion of rupee to other major currencies and vice versa
(c) allowing the value of the rupee to be fixed by market forces
(d) developing an international market for currencies in India
24. Black money is :
(a) counterfeit currency
(b) illegally earned money
(c) money earned through underhand deals
(d) income on which payment of tax is usually evaded
25. Broad money in India is :
(a) M1 (b) M2
(c) M3 (d) M4
26 M1 includes :
(a) currency with public
(b) demand deposit with bank
(c) other deposits with RBI
(d) all of the above
27. M3 includes :
(a) M1 +T.D
(b) M1 + post office saving deposit
(c) M1 + post office total deposit
(d) M1 + national saving certificate
28. Which of the following Mahatma Gandhi series of currency notes issued by the RBI has a drawing of the “Parliament House’ depicted on t ?
(a) Rs. 500 (b) Rs. 100
(c) Rs. 50 (d) Rs. 10
29. Which of the following Mahatma Gandhi series of currency notes issued by the RBI has “ecology” depicted on it?
(a) Rs. 500/- (b) Rs. 100/-
(c) Rs. 50/- (d) RS. 5/-
30. Match the following:
A. Partial convertibility I. Unified exchange rate, applied for export and import of goods only, i.e., visible transaction of BoP
B. Conver tibility II.Currency can on trade be converted account on all accounts
C. Conver tibility II. 60% of the on current foreign account exchange to be converted at market rates andrest at official rate
D. Full convertibility IV.Full convertibility in all visible and tibilityinvisible transaction of goods and services
Codes:
A B C D
(a) 1 2 3 4
(b) 4 2 1 3
(c) 3 1 4 2
(d) 1 4 3 2
31. The Issue Department of the RBI maintains a against printing of notes :
(a) Minimum Reserve System
(b) Proportional Reserve System
(c) Proportional Gold Reserve System
(d) Proportional Foreign Securities Reserve System
32. Hard Currency is defined as currency:
(a) which can hardly be used for international transactions
(b) which is used in times of war
(c) which loses its value very fast
(d) traded in foreign exchange market for which demand is persistently relative to the supply
33. 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
(a) 1, 2 and 3 (b) 2, 3 and 4
(c) 1, 3 and 4 (d) 1 and 3
34. Rupee was devalued by what percent in July 1991?
(a) 18 (b) 20
(c) 22 (d) 25
ANSWER KEY
