demand & supply, profit loss, inflation & price index section 2 MCQ Questions & Answers Detailed Explanation

Question : 1

In the paralance of economy / commerce, what is ‘Gilt-edged market’?

a) Market of safe securities

b) Gold and Silver market

c) Industrial securities market

d) Market of software technology products

Question : 2

The base year for All-India Wholesale Price Index (WPI) has been changed by the Government of India from 2004-05 to

a) 2012-13

b) 2013-14

c) 2010-11

d) 2011-12

Question : 3

Which one among the following is the total amount of money available in an economy at a specific time ?

a) Money volume

b) Near money

c) Narrow money

d) Money stock

Question : 4

Assertion (A) :
Investment has a demand effect.

a) (A) is correct, but (R) is incorrect.

b) Both (A) and (R) are correct, and (R) is the correct explanation of (A).

c) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).

d) (A) is incorrect, but (R) is correct.

Question : 5

Inflation rate based on consumer price index increases if

a) Statutory Liquidity ration is increased

b) Repo rate is increased

c) Bank rate is decreased

d) Reverse repo rate is decreased

Question : 6

During period of inflation, rates should

a) Remain constant

b) Increase

c) Decrease

d) Fluctuate