Important Banking Awareness Quizzes (Topic Wise) Day-185

Dear Readers, Here we have provided the Important Banking Awareness Quizzes based on particular topic, which will help to understand and prepare in a better way. Candidates those who are preparing for upcoming IBPS/SBI Exams 2018 can make use of it.

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1. Inflation which is created and sustained by increase in cost of production which is independent of the state of demand is called ____________

1.   Close inflation
2.   Pricing Power Inflation
3.   Open inflation
4.   Cost push inflation
5.   None of these

2. _______________happens in oligopolistic markets, where prices are increased just to increase profit margins

1.   Pricing Power Inflation
2.   Asset inflation
3.   Hyperinflation
4.   Open inflation
5.   None of these

3. ____________ is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling

1.   Deflation
2.   Reflation
3.   Inflation
4.   Stagflation
5.   None of these

4. In ___________ the rate where Costs rise due to Economic trends of Spending Products and Services

1.   Open Inflation
2.   Close inflation
3.   Pricing Power Inflation
4.   Stagflation
5.   None of these

5. Which of the following is the impact of inflation?

1.   Inflation redistributes wealth from creditors to debtors
2.   It slows down the economic growth rate
3.   The standard of living declines
4.   Prices goes up, that mean you pay more money for the same product which you got it lesser earlier
5.   All of the above

6. _____________ is caused mainly by excessive deficit spending (financed by printing more money) by a government

1.   Pricing Power Inflation
2.   Asset inflation
3.   Demand-pull inflation
4.   Skewflation
5.   Hyperinflation

7. _______________ is asserted to arise when aggregate demand in an economy outpaces aggregate supply

1.   Cost pull inflation
2.   Demand-pull inflation
3.   Creeping inflation
4.   Wage inflation
5.   None of these

8. _____________refers to increase in prices of one asset class (gold, oil, housing, etc.)

1.   Reverse inflation
2.   Asset inflation
3.   Liability inflation
4.   Suppressed Inflation
5.   None of these

9. _____________measures the rising prices of all commodities except energy and food, due to the fact that gas prices increase every summer

1.   Hyperinflation
2.   Core inflation
3.   Asset inflation
4.   Open inflation
5.   None of these

10. ______________makes consumers expect that the prices will keep increasing, which in turn boosts demand for goods and services, as consumers now want to buy a lot to beat the future prices

1.   Pricing Power Inflation
2.   Stagflation
3.   Open inflation
4.   Hyperinflation
5.   Creeping inflation

11. ______________is an un-usual inflation, where there is inflation in one particular sector for a particular period of time

1.   Skewflation
2.   Pricing Power Inflation
3.   Creeping inflation
4.   Demand-pull inflation
5.   None of these

12. ______________occurs when wages of workers rise faster than the cost of living

1.   Core inflation
2.   Creeping inflation
3.   Hyperinflation
4.   Wage inflation
5.   None of these

13. Which of the following measure required for control inflation?

1.   Increase in taxes
2.   Price control
3.   Reduction in Unnecessary Expenditure
4.   All of the above
5.   None of these

14. _____________ disguised by government Price controls or other interference in the economy such as subsidies

1.   Core inflation
2.   Pricing Power Inflation
3.   Suppressed Inflation
4.   Hyperinflation
5.   None of these

15. ______________is a situation in an economy where inflation and unemployment both are at higher levels

1.   Deflation
2.   Core inflation
3.   Stagflation
4.   Skewflation
5.   None of these

Answers:

1. Correct Answer is: d)

Inflation which is created and sustained by increase in cost of production which is independent of the state of demand is called cost push inflation

2. Correct Answer is: a)

Pricing Power Inflation: It happens in oligopolistic markets, where prices are increased just to increase profit margins.

3. Correct Answer is: c)

Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling.

4. Correct Answer is: a)

Open Inflation – The rate where Costs rise due to Economic trends of Spending Products and Services.

5. Correct Answer is: e)

Impacts of inflation

Inflation redistributes wealth from creditors to debtors

It slows down the economic growth rate

The standard of living declines

Prices goes up, that mean you pay more money for the same product which you got it lesser earlier

6. Correct Answer is: e)

Hyperinflation is caused mainly by excessive deficit spending (financed by printing more money) by a government, some economists believe that social breakdown leads to hyperinflation (not vice versa), and that its roots lie in political rather than economic causes.

7. Correct Answer is: b)

Demand-pull inflation is asserted to arise when aggregate demand in an economy outpaces aggregate supply. It involves inflation rising as real gross domestic product rises and unemployment falls, as the economy moves along the Phillips curve. This is commonly described as “too much money chasing too few goods”.

8. Correct Answer is: b)

Asset inflation refers to increase in prices of one asset class (gold, oil, housing, etc.). Asset inflation is often overlooked by inflation watchers when the overall inflation is low.

9. Correct Answer is: b)

Core inflation measures the rising prices of all commodities except energy and food, due to the fact that gas prices increase every summer.

10. Correct Answer is: e)

The creeping inflation makes consumers expect that the prices will keep increasing, which in turn boosts demand for goods and services, as consumers now want to buy a lot to beat the future prices. And this, is how creeping inflation drives economic expansion.

11. Correct Answer is: a)

Skewflation is an un-usual inflation, where there is inflation in one particular sector for a particular period of time, while the other sector is experiencing no changes at all or facing deflation.

12. Correct Answer is: d)

Wage inflation occurs when wages of workers rise faster than the cost of living. Wage inflation occurs when there are labour unions demanding higher wages, when workers control their pay or when there’s a shortage of workers.

13. Correct Answer is: d)

Monetary Measures – Credit Control, Issue of new currency

Fiscal Measures – Reduction in Unnecessary Expenditure , Increase in taxes , Increase in savings , Surplus Budgets , Public Debts , To increase in production , Rational wage policy , Price control  and Rationing

14. Correct Answer is: c)

Suppressed Inflation – Existing inflation disguised by government Price controls or other interference in the economy such as subsidies. Such suppression, nevertheless, can only be temporary because no governmental measure can completely contain accelerating inflation in the long run. It is Also Called Repressed Inflation.

15. Correct Answer is: c)

Stagflation – In this types there is fall in the output and employment levels. Due to various pressure, the entrepreneurs have to raise price to maintain their margin of profits. But as they only partially succeed in raising the prices, they are faced with a situation of declining output and investment.

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