Currency and Inflation - Topic Wise Multiple Choice Questions (MCQ)
1 )
What is the cause of inflation?
If money supply increases.
If money supply increases and production falls. ✔
Both money supply and production decreases.
If the production rate falls.
None of these
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2 )
Who will get the maximum benefit from inflation?
Debtors. ✔
The business men.
Saving bank account holders.
Holder of real assets
None of these
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3 )
Who will suffer most from inflation?
Creditors ✔
Government pensioners.
debtors
merchants
None of these
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4 )
In which period the inflation in post economic reforms was minimum?
2007-2008
1999-2000 ✔
1997-1999
2008-2009
2017-2018
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5 )
What does the inflation imply?
Rise in budget deficit
Rise in prices of consumer goods.
Rise in money supply.
Rise in general price index. ✔
None of these
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