1) Which of the following benefits from inflation?
a. Lender
b. Borrower
c. Both
d. None
|
Answer
Explanation
|
ANSWER: Borrower
Explanation:
Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. Inflation redistributes wealth from creditors to debtors so borrower gets benefits from inflation
|
|
2) Measures taken by the Government to control inflation especially food inflation are
1) Allocation of additional rice to BPL APL families in states
2) Open Market Sales of Wheat
3) Moderation in increases in the MSPs
4) Bringing rice and wheat under the purview of the Essential Commodities Act, 1955 to deal with cartelization and hoarding.
a. 1, 2 and 3
b. Only 2
c. 1, 2 and 4
d. 1, 2, 3 and 4
|
Answer
Explanation
|
ANSWER: 1, 2 and 3
Explanation:
Bringing onions and potatoes under the purview of the Essential Commodities Act 1955, to deal with cartelization and hoarding.
|
|
3) Factors causing moderation in inflation are
1) Decline in crude prices
2) Pumping currency in the economy
3) Stable Rupee.
4) Moderation in wage rate growth
a. 1 and 3
b. Only 2
c. 1, 3 and 4
d. 2, 3 and 4
|
Answer
Explanation
|
ANSWER: 1, 3 and 4
Explanation:
No explanation is available for this question!
|
|
4) The recent structural shifts in the inflationary process in India causing a decline in inflation are caused by
1) Lower Crude oil prices
2) Decreasing Agriculture prices and wages
3) Reduced Inflation Expectations
4) Reduced Current Account Deficit
a. 1, 2 and 3
b. All of the above
c. 1, 2 and 4 only
d. 1, 2 and 3 only
|
Answer
Explanation
|
ANSWER: 1, 2 and 3
Explanation:
Structural shifts in the inflationary process are underway caused by lower oil prices, deceleration in agriculture prices and wages and inflationary expectations. These all have lead to a remarkable decline in inflation in just few months.
|
|
