General Knowledge Test with questions about different types of economies for exams like UPSC, SSC, UPPSC, Banking, RPSC, MPSC, KAS, MPPSC, and others.
1. Which of the following is an anti-inflationary measure?
- Increasing interest rates
- Lowering taxes
- Increasing government spending
- Reducing interest rates
Show Answer
Answer: Option A. Increasing interest rates
2. What do we call a continuous decrease in the overall price level of goods and services?
- Recession
- Stagnation
- Deflation
- Hyperinflation
Show Answer
Answer: Option C. Deflation
3. What term describes the situation where inflation and stagnation occur simultaneously?
- Stagflation
- Deflation
- Economic boom
- Recovery
Show Answer
Answer: Option A. Stagflation
4. What is the appropriate term for a steady increase in the general levels of prices, income, output, and employment?
- Economic growth
- Deflation
- Recession
- Stagflation
Show Answer
Answer: Option D. Stagflation
5. How are the prices of bank products affected during inflation?
- They remain unchanged
- They tend to increase
- They decrease
- They become free
Show Answer
Answer: Option B. They tend to increase