Wednesday, June 3, 2015

Day 45 - Questions

Day 45 - Inflation - Stages and Types

( Inflation, Stages of Inflation, Types of Inflation )

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1.  Inflation refers to -
a.  increase in value of currency
b.  decrease in value of currency
c.  increase in value of commodities
d.  decrease in value of commodities

2.  If the prices of commodities become less than that of the base year, then it is known as -
a.  Inflation
b.  Deflation
c.  Revaluation
d.  Devaluation

3.  Hyper-inflation generally refers to -
a.  2 - 4 % inflation
b.  4 - 10 % inflation
c.  10 - 20 % inflation
d.  more than 20 % inflation

4.  Demand-pull Inflation occurs, if -
a.  demands exceed available supply
b.  demands become less than available supply
c.  Both (a) and (b)
d.  None of the above

5.  Oligopolistic Inflation is also known as -
a.  Demand Pull Inflation
b.  Pricing Power Inflation
c.  Cost Push Inflation
d.  Sectoral Inflation

6.  If the cost of raw materials increases, then the cost of final product also increases. If this situation leads to inflation, then it will be referred to as -
a.  Demand Pull Inflation
b.  Pricing Power Inflation
c.  Cost Push Inflation
d.  Sectoral Inflation

7.  Which of the following could lead to Sectoral Inflation?
a.  Demand of a product is much more than the available supply
b.  Price of a product is drastically increased by a producer, because it enjoys monopoly on the market
c.  Cost of raw materials is increased, making the final product more costlier
d.  Price of a product increased, due to the rise in price in the (another) sector on which it depends on

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