Quiz

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Question Results
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1. Low rate of inflation is:

Creeping

Cost push
Galloping

Real
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2. Inflation leads to fall in..wages.

Hyperinflation
Wage
Creeping
Real
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3. A persistent fall in the average price level in an economy is:

Deflation

Demand pull
Cost Push
Chronic
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4. Type of inflation caused due to a rise in cost of production is:

Excess Demand
Demand push
Cost push

Running
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5. Inflation, which is termed as jumping inflation, is:

Galloping

Creeping
Chronic
Hyperinflation
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6. Predicted rise in rate of inflation is:

Unanticipated
Anticipated

Sporadic
Comprehensive
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7. Government controls are relaxed resulting to increase in prices after the war
results to . inflation.
Open
Suppressed
Moderate
Post-War
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8. Employees try to increase prices of the commodities in anticipation of

inflation. This is termed as:
Fiscal
Development

Build-in

Export boom
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9. Calculate the nominal interest rate if real interest rate is 5% and inflation is
1%.
6%

4%
0%
3%
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10. Which interest rate is reported when a loan is made?

Real
Low
High
Nominal
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11. An interest rate, which accounts for inflation also is termed as .

.interest rate.

Compound
Nominal
Simple
Real
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12. If supply of money is greater than demand for money, then interest
rate will:
Fall

Rise
Not change
None of the above