Inflation: Problem and Policies Test

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Inflation: Problem and Policies Test - 1

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Weekly Quiz Competition

Question 1
1 / -0

Which of the following is not a non-monetary measure?

A
Controlling money wages

B
Price control and rationing.

C
Increasing output or increasing inputs

D
Increase in rate of interest

Solution

Explanation:

Increase in the rate of interest is not a non monetary measure. It is a monetary measure because it will have a direct impact on the money supply in the economy.
Question 2
1 / -0

Policy of the government with respect to taxes and with respect to its own expenditure on running the administration of the country is known ass

A
Monetary policy

B
Both

C
None

D
Fiscal policy
Question 3
1 / -0

Following are the reasons of cost-push inflation except

A
Components cost

B
Monopoly employers

C
Lower indirect taxes

D
Rising labour cost
Question 4
1 / -0

Debtor _____ while creditors ____ during inflation

A
Gain, Lose

B
Gain, Gain

C
Lose, Gain

D
Lose, Lose
Question 5
1 / -0

Selling of securities in the open market by the central bank creates

A
Inflation

B
Deflation

C
None

D
Both
Question 6
1 / -0

Which is not the monetary measure to control inflation?

A
Hard credit policy

B
Tight the regulation of money issue

C
Soft loan policy

D
None
Question 7
1 / -0

The price level over 60 years period between 1950-51 to 2009-10 shows more or less persistent

A
None of these

B
Straight line trend

C
Upward trend

D
Downward trend
Question 8
1 / -0

Which of the following is consistent with an increase in the inflation rate?

A
A decrease in unemployment benefits.

B
A decrease in the mark-up coefficient.

C
An increase in expected inflation rate

D
All of the above
Question 9
1 / -0

Which of the following is the monetary measure (i) A check on the supply of money (ii) Increases in rate of interest (iii) Price control and rationing. Options are

A
I,III

B
I,II,III

C
I,II

D
II,III
Question 10
1 / -0

Continuously falling general price level is known as

A
Inflation

B
Hyperinflation

C
Deflection

D
Deflation

Solution

Explanation:

Deflation is a decrease in the general price level of goods and services. It occurs when the inflation rate falls below 0%.

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Re-Attempt Weekly Quiz Competition

Inflation: Problem and Policies Test - 1

Result

Inflation: Problem and Policies Test - 1

Score

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Rank

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SHARING IS CARING

Question 1

Controlling money wages

Price control and rationing.

Increasing output or increasing inputs

Increase in rate of interest

Solution

Question 2

Monetary policy

Both

None

Fiscal policy

Question 3

Components cost

Monopoly employers

Lower indirect taxes

Rising labour cost

Question 4

Gain, Lose

Gain, Gain

Lose, Gain

Lose, Lose

Question 5

Inflation

Deflation

None

Both

Question 6

Hard credit policy

Tight the regulation of money issue

Soft loan policy

None

Question 7

None of these

Straight line trend

Upward trend

Downward trend

Question 8

A decrease in unemployment benefits.

A decrease in the mark-up coefficient.

An increase in expected inflation rate

All of the above

Question 9

I,III

I,II,III

I,II

II,III

Question 10

Inflation

Hyperinflation

Deflection

Deflation

Solution

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