Inflation PYQs

Tap an option to check it. For one question at a time, use Start practice above.

1. Prelims 2022Q68Inflation

   In India, which one of the following is responsible for maintaining price stability by controlling inflation ?

   aDepartment of Consumer AffairsbExpenditure Management CommissioncFinancial Stability and Development CouncildReserve Bank of India
2. Prelims 2021Q10Inflation

   Which one of the following is likely to be the most inflationary in its effects?

   aRepayment of public debtbBorrowing from the public to finance a budget deficitcBorrowing from the banks to finance a budget deficitdCreation of new money to finance a budget deficit
3. Prelims 2021Q12Inflation

   With reference to Indian economy, demand-pull inflation can be caused/increased by which of the following?

   1.Expansionary policies

   2.Fiscal stimulus

   3.Inflation-indexing wages

   4.Higher purchasing power

   5.Rising interest rates

   Select the correct answer using the code given below.

   a1, 2 and 4 onlyb3, 4 and 5 onlyc1, 2, 3 and 5 onlyd1, 2, 3, 4 and 5
4. Prelims 2020Q67Inflation

   Consider the following statements :

   1.The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).

   2.The WPI does not capture changes in the prices of services, which CPI does.

   3.Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.

   Which of the statements given above is/are correct ?

   a1 and 2 onlyb2 onlyc3 onlyd1, 2 and 3
5. Prelims 2015Q29Inflation

   Which of the following brings out the ‘Consumer Price Index Number for Industrial Workers’?

   aThe Reserve Bank of IndiabThe Department of Economic AffairscThe Labour BureaudThe Department of Personnel and Training
6. Prelims 2015Q87Inflation

   With reference to inflation in India, which of the following statements is correct?

   aControlling the inflation in India is the responsibility of the Government of India onlybThe Reserve Bank of India has no role in controlling the inflationcDecreased money circulation helps in controlling the inflationdIncreased money circulation helps in controlling the inflation
7. Prelims 2013Q66Inflation

   Consider the following statements :

   1.Inflation benefits the debtors.

   2.Inflation benefits the bond-holders.

   Which of the statements given above is/are correct?

   a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
8. Prelims 2013Q82Inflation

   A rise in general level of prices may be caused by

   1.An increase in the money supply

   2.A decrease in the aggregate level of output

   3.An increase in the effective demand

   Select the correct answer using the codes given below.

   a1 onlyb1 and 2 onlyc2 and 3 onlyd1, 2 and 3
9. Prelims 2013Q84Inflation

   Which one of the following is likely to be the most inflationary in its effect?

   aRepayment of public debtbBorrowing from the public to finance a budget deficitcBorrowing from banks to finance a budget deficitdCreating new money to finance a budget deficit
10. Prelims 2011Q4Inflation

    India has experienced persistent and high food inflation in the recent past. What could be the reasons?

    1.Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30%.

    2.As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.

    3.The food supply chain has structural constraints.

    Which of the statements given above are correct?

    a1 and 2 onlyb2 and 3 onlyc1 and 3 onlyd1, 2 and 3
11. Prelims 2011Q13Inflation

    A rapid increase in the rate of inflation is sometimes attributed to the "base effect". What is "base effect" ?

    aIt is the impact of drastic deficiency in supply due to failure of cropsbIt is the impact of the surge in demand due to rapid economic growthcIt is the impact of the price levels of previous year on the calculation of inflation ratedNone of the statements (a), (b) and (c) given above is correct in this context
12. Prelims 2011Q87Inflation

    Economic growth is usually coupled with

    aDeflationbInflationcStagflationdHyperinflation
13. Prelims 2010Q19Inflation

    Which one of the following statements is an appropriate description of deflation ?

    aIt is a sudden fall in the value of a currency against other currenciesbIt is a persistent recession in both the financial and real sectors of economycIt is a persistent fall in the general price level of goods and servicesdIt is a fall in the rate of inflation over a period of time
14. Prelims 2010Q86Inflation

    With reference to India, consider the following statements:

    1.The Wholesale Price Index (WPI) in India is available on a monthly basis only.

    2.As compared to Consumer Price Index for Industrial Workers (CPI(IW)), the WPI gives less weight to food articles.

    Which of the statements given above is/are correct?

    a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
15. Prelims 2001Q9Inflation

    The new series of Wholesale Price Index (WPI) released by the Government of India is with reference to the base prices of

    a1981-82b1990-91c1993-94d1994-95
16. Prelims 1998Q146Inflation

    The current price index (base 1960) is nearly 330. This means that

    aall items cost 3.3 times more than what they did in 1960bthe prices of certain selected items have gone up to 3.3 timescweighted mean of prices of certain items has increased 3.3 timesdgold price has gone up 3.3 times
17. Prelims 1997Q67Inflation

    In India, inflation is measured by the

    aWholesale Price Index NumberbConsumers Price Index for urban non-manual workerscConsumers Price Index for agricultural workersdNational Income deflation