Daily GS Foundation MCQs - SthaapnaEconomy Previous Year QuestionsIAS Previous Year QuestionsSthaapana – January 2019Sthaapana – January 2019 – Week 4

IAS Previous Year ECONOMY Questions – Lecture – 6 – STHAAPNA Series

Sthapna - Static MCQs for GS - Subject - Day46

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Q.1) Supply of money remaining the same when there is an increase in demand for money, there will be: (2013)

a) a fall in the level of prices

b) an increase in the rate of interest

c) decrease in the rate of interest

d) an increase in the level of income and employment


Q.2) Consider the following statements: (2013) 

1. Inflation benefits the debtors.

2. Inflation benefits the bondholders.

Which of the statements given above is/are correct?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2


Q.3) A rise in general level of prices may be caused by : (2013) 

  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:

a) 1 only

b) 1 and 2 only

c) 2 and 3 only

d) 1, 2 and 3


Q.4) Which one of the following is likely to be the most inflationary in its effect? (2013) 

a) Repayment of public debt

b) Borrowing from the public to finance a budget deficit

c) Borrowing from banks to finance a budget deficit

d) Creating new money to finance a budget deficit


Q.5) Economic growth is usually coupled with: (2011) 

a) Deflation

b) Inflation

c) Stagflation

d) Hyperinflation


Q.6) Which of the following brings out the ‘Consumer Price Index Number for Industrial Workers’? (2015)

a) The Reserve Bank of India

b) The Department of Economic Affairs

c) The Labour Bureau

d) The Department of Personnel and Training


Q.7) With reference to inflation in India, which of the following statements is correct? (2015)

a) Controlling the inflation in India is the responsibility of the Government of India only

b) The Reserve Bank of India has no role in controlling the inflation

c) Decreased money circulation helps in controlling the inflation

d) Increased money circulation helps in controlling the inflation


Q.8) A rapid increase in the rate of inflation is sometimes attributed to the “base effect”? (2011)

a) It is the impact of drastic deficiency in supply due to failure of crops

b) It is the impact of the surge in demand due to rapid economic growth

c) It is the impact of the price levels of previous year on the calculation of inflation rate

d) None of the statements (a), (b) and (c) given above is correct in this context


Q.9) India has experienced persistent and high food inflation in the recent past. What could be the reasons(2011)

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 ?

a) 1 and 2 only

b) 2 and 3 only

c) 1 and 3 only

d) 1,2 and 3


Q.10) Which one of the following statements is an appropriate description of deflation? (2010)

a) It is a sudden fall in the value of a currency against other currencies

b) It is a persistent recession in both the financial and real sectors of economy

c) It is a persistent fall in the general price level of goods and services

d) It is a fall in the rate of inflation over a period of time

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