WBCS Mains Indian Economy Inflation Questions 2023

Q. Reserve Bank’s monetary policy fails in controlling inflation when inflation is caused by

(A) deficit financing.
(B) shortages of goods.
(C) financing of business by non-bank financial companies.
(D) All of the above

Correct Answer: (D) All of the above

Q. Which of the following the Reserve Bank uses as an anti-inflationary measure?

(A) Decrease in the Bank Rate
(B) Increase in the Bank Rate
(C) Reduction in the Cash Reserve Ratio
(D) Open market purchases of Government securities

Correct Answer: (B) Increase in the Bank Rate

WBCS Mains Indian Economy Inflation Questions 2022

Q. During inflation

(A) creditors are losers and borrowers are gainers.
(B) creditors are gainers and borrowers are losers.
(C) Both are losers.
(D) Both are gainers.

Correct Answer: (A) creditors are losers and borrowers are gainers.

Q. Stagflation refers to a situation which is characterized by

(A) deflation and high unemployment.
(B) inflation and rising employment.
(C) inflation and rising unemployment.
(D) stagnant employment and deflation.

Correct Answer: (C) inflation and rising unemployment.

WBCS Mains Indian Economy Inflation Questions 2021

Q. Which among the following cannot be called an anti-inflationary measure?

(A) Raising the bank rates
(B) Raising the Reserve Ratio Requirements
(C) Purchase of securities from the open markets
(D) Rationing of the credit

Correct Answer: (C) Purchase of securities from the open markets

Q. Which of the following groups suffer the most from inflation?

(A) Debtors
(B) Creditors
(C) Business class
(D) Holders of real assets

Correct Answer: (B) Creditors

Q. Inflation Indexed Bonds is pegged to __________

(A) WPI
(B) CPI
(C) Both WPI and CPI
(D) None of the above

Correct Answer: (A) WPI

Q. In India, inflation measured by the __________

(A) Wholesale Price Index number.
(B) Consumers Price Index for urban non-manual workers.
(C) Consumers Price Index for agricultural workers.
(D) National Income Deflation.

Correct Answer: (A) Wholesale Price Index number.

WBCS Mains Indian Economy Inflation Questions 2020

Q. Inflation appears when there occurs ______

(A) increase in money supply.
(B) one time increase in price level.
(C) increase in profit and production.
(D) continuous increase in price level.

Correct Answer: (D) continuous increase in price level.

Q. Inflationary pressure in the domestic market ______

(A) makes balance of trade unfavourable.
(B) improves balance of trade.
(C) does not affect foreign exchange reserve & foreign trade.
(D) the relationship is uncertain.

Correct Answer: (A) makes balance of trade unfavourable.

WBCS Mains Indian Economy Inflation Questions 2019

Q. A condition of slow economic growth and relatively high unemployment — economic stagnation — accompanied by rising prices is known as

(A) Stagflation
(B) Hyper-inflation
(C) Demand-pull inflation
(D) Cost push inflation

Correct Answer: (A) Stagflation

Q. Since April 2014 the Reserve Bank of India has adopted the new measure of inflation which is known as

(A) Consumer Price Index
(B) New Consumer Price Index
(C) Wholesale Price Index
(D) None of the above

Correct Answer: (A) Consumer Price Index

WBCS Mains Indian Economy Inflation Questions 2018

Q. Which of the following wrongly matched?

(A) Share market-stock exchange
(B) Interest rate-fiscal policy
(C) Export subsidy-fiscal policy
(D) General price index-inflation

Correct Answer: (B) Interest rate-fiscal policy

WBCS Mains Indian Economy Inflation Questions 2017

Q. In India, inflation is measured by

(A) wholesale price index number.
(B) consumer price index number for urban non-manual workers.
(C) net national product at market prices.
(D) gross national product at market prices.

Correct Answer: (A) wholesale price index number.

Q. When the Reserve Bank of India increases the Cash Reserve Ratio (CRR)?

(A) When the Indian economy have high rate of inflation.
(B) When the Indian economy have low rate of inflation.
(C) The demand of goods and services is very low.
(D) None of the above

Correct Answer: (A) When the Indian economy have high rate of inflation.

Q. During which Five year plan did prices show a decline?

(A) 1st
(B) 3rd
(C) 5th
(D) 6th

Correct Answer: (A) 1st

Q. In India, which of the following affects poverty line the most?

(A) Level of prices
(B) Production quantum
(C) Per capita income
(D) Quantum of gold reserve

Correct Answer: (A) Level of prices

WBCS Mains Indian Economy Inflation Questions 2016

Q. Which of the following benefits from inflation?

(A) Lender
(B) Borrower
(C) Both
(D) None of the above

Correct Answer: (B) Borrower

Q. In India, inflation measured by the

(A) Wholesale Price Index Number
(B) Consumer Price Index for urban non-manual workers
(C) Consumer Price Index for agricultural workers
(D) National Income Deflation

Correct Answer: (A) Wholesale Price Index Number

Q. Which of the following governmental steps has proved relatively effective in controlling the double digit rate of inflation in the Indian economy during recent years?

(A) Containing budgetary deficits and unproductive expenditure
(B) Streamlined public distribution system
(C) Enhanced rate of production of all consumer goods
(D) Pursuing an export-oriented strategy

Correct Answer: (A) Containing budgetary deficits and unproductive expenditure

Q. Factors responsible for current inflation are

(A) circulation of black money
(B) government expenditure on subsidy
(C) excess of demand over supply of goods
(D) All of the above

Correct Answer: (D) All of the above

Q. In India, inflation measured by the

(A) National Income Deflation
(B) Wholesale Price Index Number
(C) Consumer Price Index
(D) None of the above

Correct Answer: (B) Wholesale Price Index Number

WBCS Mains Indian Economy Inflation Questions 2015

Q. Inflation can be controlled by this method:

(A) Reducing SLR
(B) Reducing CRR
(C) Increasing bank rate
(D) None of the above

Correct Answer: (C) Increasing bank rate

Q. Inflation can be controlled by:

(A) surplus budget
(B) increase in taxation
(C) reduction in public expenditure
(D) All of the above

Correct Answer: (D) All of the above

Q. Find out the incorrect statement. Cause of inflation is:

(A) Parallel economy
(B) Low fiscal deficit
(C) High growth of money supply
(D) High rate of public expenditure

Correct Answer: (B) Low fiscal deficit

WBCS Mains Indian Economy Inflation Questions 2014

Q. D. A. (Dearness Allowance) is paid on the basis of –

(A) Standard of living
(B) Per capita Income
(C) Consumer Price index
(D) National Income

Correct Answer: (C) Consumer Price index