MCQs on Money, Money Supply, and Inflation
MCQs on Money, Money Supply, and Inflation 1. What is the primary function of money? a) To create employment b) To measure temperature c) To act as a medium of exchange d) To increase inflation a) Currency with the public b) Gold reserves in temples c) Demand deposits with banks d) Time deposits 3. Which authority is responsible for regulating money supply in India? a) Ministry of Finance b) Reserve Bank of India (RBI) c) SEBI d) NITI Aayog 4. Inflation refers to: a) Increase in employment b) Decrease in prices c) General rise in prices over time d) Decrease in money supply 5. Demand-pull inflation occurs when: a) Demand exceeds supply b) Supply exceeds demand c) Prices fall rapidly d) Currency is withdrawn 6. Which of the following can cause cost-push inflation? a) Increase in productivity b) D...