Inflation Quiz

Inflation represents:
(a) fall in the price level
(b) increase the value of money
(c) decrease the value of money

Ans. (c)

Which is the slowest inflation?
(a) Walking
(b) running
(c) Creeping
(d) moderate

Ans. (c)

Inflation due to an increase in the price of industrial products is known as:
(a) Pricing power
(b) Sectoral
(c) Profit

Ans. (a)

Cost–push inflation arises due to
(a) Rise in wages
(b) Rise in profit
(c) Rise in the prices of raw materials
(d) All of the above

Ans. (d)

What is Hyperinflation?
(a) extremely high inflation
(b) meager inflation

Ans. (a)

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Who said inflation is too much money chasing too few goods?
(a) Coulbourn
(b) Keynes
(c) Friedman
(d) Samuelsson

Ans. (c)

What is the most common indicator of inflation?
(a) The Fisher effect
(b) The Phillips curve
(c) Core inflation Index
(d) Consumer Price Index

Ans. (d)

The oil price rise is an example of __ inflation
(a) Sectoral
(b) Demand pulled
(c) Development
(d) Pricing power

Ans. (a)

The rate of inflation for walking is:
(a) between 3 to 10%
(b) below 3 %
(c) More than 10%
(d) More than 3%

Ans. (a)

‘Stagflation’ is a situation that the economy faces
(a) Inflation
(b) Stagnation
(c) Inflation as well as stagnation

Ans. (b)

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Demand inflation is due to:
(a) cost hike
(b) excess demand
(c) excess cost

Ans. (b)

Which is not a feature of inflation?
(a) long term process
(b) state of disequilibrium
(c) dynamic in nature
(d) non-monetary phenomenon

Ans. (d)

Inflation is a situation where
(a) Prices are falling
(b) Value of money is falling
(c) Value of money is rising

Ans. (c)

Cost-push inflation can be controlled mainly by
(a) Fiscal policy
(b) Monetary policy
(c) Administrative policy

Ans. (c)

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Deflation means:
(a) falling price level
(b) rise in the price level
(c) increase the value of money

Ans. (a)

In the case of ‘creeping inflation,’ prices are rising at
(a) Less than 3% per month
(b) Less than 3% per annum
(c) Around 5% per month
(d) Around 5% per annum

Ans. (c)

What is Disinflation?
(a) a slight decrease in the prices
(b) slow increase in the prices
(c) high increase in the prices
(d) no increase in the prices

Ans. (d)

Expand PPI
(a) Purchaser Price Index
(b) People Price Index
(c) Producer Price Index
(d) Primary Price Index

Ans. (c)

The price rise every second is referred to as __ inflation
(a) Running
(b) Galloping
(c) Walking
(d) Hyper

Ans. (d)

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When prices of only a few commodities rise, it is called
(a) Sporadic
(b) suppressed
(c) open
(d) creeping

Ans. (a)

The term Stagflation was coined by:
(a) Samuelson
(b) Iain Macleod
(b) Keynes

Ans. (b)

Which of the following is/are the easiest way(s) to handle economic inflation?
(A) Increase the money supply in the economy.
(B) Curb the money supply in the economy,
(C) Increase the credit inflow in the economy.
(D) Curb the credit inflow in the economy.
(a) Only (A) and (C)
(b) Only (B) and (D)
(c) Only (A)

Ans. (a)

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Demand-pull inflation may be caused by:
(a) An increase in costs
(b) A reduction in interest rates
(c) A reduction in government spending
(d) An outward shift in aggregate supply

Ans. (b)

What is the cause of inflation?
(a) If the money supply increases.
(b) If the production rate falls.
(c) If money supply increases and production falls.
(d) Both money supply and production decrease

Ans. (c)

What is cost-push inflation?
(a) Increasing money supply
(b) Increasing indirect tax
(c) Population increase
(d) expenditure increases unnecessarily

Ans. (b)

Which of the following is an effect of inflation?
(a) Erosion in purchasing power
(b) Affects the relative price of goods
(c) Increase in inequality of income
(d) All the above

Ans. (d)

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Inflation:
(a) Always reduces the cost of living
(b) Always reduces the standard of living
(c) Reduces the price of products
(d) Reduces the purchasing power of a currency

Ans. (d)

What does inflation imply?
(a) Rise in the budget deficit
(b) Rise in prices of consumer goods.
(c) rise in the money supply.
(d) Rise in the general price index

Ans. (d)

What shows the inverse relationship between inflation and unemployment?
(a) Wage-price spiral
(b) CII
(c) The Phillips curve
(d) cost-push factor

Ans. (c)

How can inflation be checked temporarily?
(a) Increase in money supply
(b) Decrease in money supply
(c) Increase in wages
(d) Decrease in Tax

Ans. (b)

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

Ans. (a)

Which is not a type of inflation?
(a) Demand-pull
(b) Growth-push
(c) Cost-push
(d) Core

Ans. (b)

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Because of trade (and imports), inflation
(a) increases
(b) decreases
(c) moderates
(d) disappears

Answer. (c)

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Jaspreet

Jaspreet (Masters in Commerce-LLB) not only have exceptional command of Accounts and Commerce subjects but also have keen interest in Law. He is consistent in producing high quality assignments.

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