During inflation, the purchasing power of money: MCQ with Answer and Explanation

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During inflation, the purchasing power of money:

A. increases

B. decreases

C. first increases then decreases

D. remains unchanged

Answer: Option B

Solution (By JKSSB Mock Tests)

Inflation reduces the purchasing power of money because each unit buys fewer goods.

This question belongs to: Economy GK Economy Set 1

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Question #1

Net factor income from abroad is equal to:

A. factor income received from abroad plus factor income paid to abroad

B. remittances received by India

C. exports minus imports

D. factor income received from abroad minus factor income paid to abroad

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Correct Answer: Option D

Explanation:
Net factor income from abroad is the difference between factor income received from abroad and factor income paid abroad.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Central Information Commission' is a:

A. private body

B. constitutional body

C. statutory body

D. executive body

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Correct Answer: Option C

Explanation:
The Central Information Commission is a statutory body under RTI Act.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'MUDRA' Yojana was launched in which year?

A. 2017

B. 2016

C. 2015

D. 2013

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Correct Answer: Option C

Explanation:
Pradhan Mantri Mudra Yojana was launched in 2015.

This question belongs to: Economy GK Economy Set 1

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