InflationSivakumarPYQs - Prelims0 Welcome to Quiz on Inflation Which of the following brings out the 'Consumer Price Index Number for industrial Workers'? The Reserve Bank of India The Department of Economic Affairs The Labour Bureau The Department of Personnel and Training Consider the following statements: 1. Inflation benefits the debtors. 2. Inflation benefits the bondholders. Which of the statements given above is/are correct? 1 only 2 only Both 1 and 2 Neither 1 nor 2 In India, inflation is measured by the: Wholesale Price Index number Consumers Price Index for agricultural workers National Income Deflator Consumer Price Index(Combined) The current Price Index (base 1960) is nearly 330. This means that the price of: 1987 all items cost 3.3 times more than what they did in 1960 the price of certain selected items have gone up to 3.3 times weighted mean of price of certain items has increased 3.3 times gold price has gone up 33 times Which one of the following statements is an appropriate description of deflation? It is a sudden fall in the value of a currency against other currencies It is a persistent recession in both the financial and real sectors of economy It is a persistent fall in the general price level of goods and services It is a fall in the rate of inflation over a period of time With reference to India, consider the following statements: 1. The Wholesale Price Index (WPI) in India is available on a monthly basis only. 2. As compared to Consumer Price Index for Industrial Workers (CPIIW), the WPI gives less weight to food articles. Which of the statements given above is/are correct? 1 only 2 only Both 1 and 2 Neither 1 nor 2 A rapid increase in the rate of inflation is sometimes attributed to the "base effect". What is "base effect"? It is the impact of drastic deficiency in supply due to failure of crops It is the impact of the surge in demand due to rapid economic growth It is the impact of the price levels of previous year on the calculation of inflation rate None of the statements (a), (b) and (c) given above is correct in this context With reference to inflation in India, which of the following statements is correct? Controlling the inflation in India is the responsibility of the Government of India only The Reserve Bank of India has no role in controlling the inflation Decreased money circulation helps in controlling the inflation Increased money circulation helps in controlling the inflation Consider the following statements 1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI). 2. The WPI does not capture changes in the prices of services, which CPI does. 3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing Which of the statements given- above is/are correct? 1 and 2 only 2 only 3 only 4 1,2 and 3 India has experienced persistent and high food inflation in the recent past. What could be the reasons? 1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30 %. 2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change. 3. The food supply chain has structural constraints. Which of the statements given above are correct? 1 and 2 only 2 and 3 only 1 and 3 only 1,2 and 3 Economic growth is usually coupled with Deflation Inflation Stagflation Hyperinflation A rise in general level of prices may be caused by 1. an increase in the money supply 2. a decrease in the aggregate level of output 3. an increase in the effective demand Select the correct answer using the codes given below. 1 only 1 and 2 only 2 and 3 only 1,2 and 3 With reference to demand-pull inflation can be caused by increased by which of the following? 1. Expansionary policies 2. Fiscal stimulus 3. Inflation-indexing wages 4. Higher purchasing power 5. Rising interest rates Select the correct answer using the code given below, 1, 2 and 4 only 3, 4 and 5 only 1, 2, 3 and 5 only 1, 2, 3, 4 and 5 Time's up 0
