McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Uncategorized topics .
Chapters
| 1. |
Inflation is the state in which .............................. |
| A. | The value of money decreases |
| B. | The value of money increases |
| C. | The value of the money increases first and then decreases |
| D. | The value of money decreases first and increases later |
| Answer» A. The value of money decreases | |
| 2. |
How inflation affects the price of the commodities? |
| A. | Price of the commodities decreases |
| B. | Price of the commodities increases |
| C. | No effect |
| D. | First the price decreases later on increases |
| Answer» B. Price of the commodities increases | |
| 3. |
When there is high inflation in the economy, how will it affect the supply of money in the economy? |
| A. | No effect on the money supply |
| B. | Supply of money decreases |
| C. | Supply of money increases |
| D. | None of the above |
| Answer» C. Supply of money increases | |
| 4. |
Which of the following class will not be negatively affected by the higher inflation? |
| A. | The consumer class |
| B. | The debtor class |
| C. | Pensioner class |
| D. | Business class |
| Answer» D. Business class | |
| 5. |
What is a stagflation? |
| A. | A situation in which the economy experiences recession. |
| B. | A situation in which the economy have inflation and recession altogether |
| C. | An economy where unemployment is high |
| D. | Both b and c |
| Answer» B. A situation in which the economy have inflation and recession altogether | |
| 6. |
Which of the following concept is just opposite to deflation? |
| A. | Stagflation |
| B. | Inflation |
| C. | Recession |
| D. | Disinflation |
| Answer» D. Disinflation | |
| 7. |
Which of the following measure is adopted to reduce inflation? |
| A. | Reduction in bank rate |
| B. | Reduction in Repo rate |
| C. | Increase in government expenditure |
| D. | Cuts in government spending |
| Answer» C. Increase in government expenditure | |
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