Indian Economy multiple choice questions for UPSC, IAS, State PSC and other Exams

This page contains General Studies subject wise Multiple Choice Questions (MCQs) on Indian Economy including Macro and Micro Economy Budget, Financial Survey and Economy sectors like Banking, External Sector, Inflation etc. It really helps to take a look at these questions and even better if one try to solve them in timely manner.

These General Studies subject wise MCQs are completely based on syllabus and patter of different exams including UPSC CSE, State PSCs, SSC, CDS, CLAT and other competitive Exams.

21. 

Which of the following makes an increase in Inflation?

1) Excess supply of money in the market.
2) Excess demand with constant supply.
3) Excess supply with constant demand.
4) Interest on loans is increased.

1. 1 & 2 2. 1,2 & 4
3. 1 & 3 4. 1, 2, 3 and 4



22. 

Which of the following policy should be adapted to check an increase in Inflation?

1) A revision in wages.
2) Reducing government spendings.
3) A cut in interest rate of loans.
4) By selling government securities.

1. 1 & 2 2. 1,2 & 4
3. 1 & 3 4. 1, 2, 3 and 4



23. 

Which of the following policy should be adapted by the Government to check an increase in "Demand pull Inflation" ?

1) Interest on loans increased.
2) Goods in short supply should be imported.
3) Reducing the monomoly of trade unions.
4) Reducing the import duty on raw materials.

1. 1 & 2 2. 1,2 & 4
3. 1 & 3 4. 1, 2, 3 and 4



24. 

Which of the following policy should be adapted by the Government to check an increase in "Cost push Inflation" ?

1) Interest on loans increased.
2) Goods in short supply should be imported.
3) Reducing the monomoly of trade unions.
4) Reducing the import duty on raw materials.

1. 1 & 2 2. 1,2 & 4
3. 3 & 4 4. 1, 2, 3 and 4



25. 

What measures should RBI take in order to Tackle Inflation ?

1) Increase CRR and SLR.
2) Increase interest rate of the loans.
3) Printing new currency and flaw it in the market.
4) Issue new Government Securities.

1. 1 & 2 2. 1,2 & 4
3. 3 & 4 4. 1, 2, 3 and 4



26. 

Which of the following can be the consecuneces of Hyper Inflation ?

1. This can lead to a complete loss of confidence in currency 2. People tend to sell out their assets to get more money with them
3. Both 4. None