Economics Page-10

91) The best means of saving during inflation is to keep:
(A) Money
(B) Government Bonds
(C) Equity
(D) Time deposits with Banks

92) 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

93) Stagflation implies a case of:
(A) Galloping inflation
(B) Recession plus inflation
(C) Adverse balance of trade
(D) Rising wages and employment

94) 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:
(A) Inflation
(B) Devaluation
(C) Deflation
(D) Demonetization

95) 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

96) 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
(A) 1 and 2
(B) 2 and 3
(C) 1,2,3 and 4
(D) 1 and 4 only

97) Among the remedies of inflation we cannot include:
(A) Better capacity utilization
(B) Lowering bank rate
(C) Reducing budgetary deficit
(D) An efficient public distribution system

98) 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

99) Inflationary Gap is a situation characterized 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

100) Inflation is caused as a result of:
(A) Increase in money supply
(B) Fall in production
(C) Increase in money supply without a corresponding increase in production
(D) Decrease in money supply without a corresponding decrease in production

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