Types of Inflation and Price Stability CDS Questions

CDS Economy

Types of Inflation and Price Stability MCQ Questions


13.
What is a thing which has universal acceptability, functions as a medium of exchange, and store of value?
A.
Goods and services
B.
Bank
C.
Money
D.
Loan
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ANSWER :
C. Money
14.
The coins minted at government mints under the Ministry of _____, Government of India.
A.
Finance
B.
Education
C.
Defense
D.
Home Affairs
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ANSWER :
A. Finance
15.
The basis of printing currency follows which system?
A.
Maximum reserve system
B.
Minimum reserve system
C.
Market-based system
D.
None of the above
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ANSWER :
B. Minimum reserve system
16.
If the deficit is financed through printing of money it is known as
A.
Monetization of deficit
B.
Monetized deficit
C.
Both a and b
D.
None of the above
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ANSWER :
C. Both a and b
17.
Any monetized deficit leads to inflation. How can you avoid this situation?
A.
Stock of money
B.
Market lendings
C.
Hike in price of goods
D.
Market borrowings
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ANSWER :
D. Market borrowings
18.
Market borrowings are performed through
A.
Issuance of central government securities by RBI
B.
Treasury bills
C.
Dated securities
D.
All the above
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ANSWER :
D. All the above