The 'base effect' in inflation refers to: MCQ with Answer and Explanation

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The 'base effect' in inflation refers to:

A. the effect of changing the base year of GDP

B. the effect of money supply on prices

C. the effect of exchange rate on imports

D. inflation measured against a low or high price level in the previous year

Answer: Option D

Solution (By JKSSB Mock Tests)

Base effect refers to the influence of the previous year's price level on the current inflation rate.

This question belongs to: Economy GK Economy Set 1

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Question #1

Which of the following is a qualitative tool of monetary policy?

A. Selective credit control

B. Cash Reserve Ratio

C. Open market operations

D. Repo rate

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Correct Answer: Option A

Explanation:
Selective credit controls (such as margin requirements and credit ceilings for specific sectors) are qualitative measures aimed at directing credit flow rather than controlling its overall volume.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Tenth Five Year Plan' period was:

A. 2000-2005

B. 2007-2012

C. 2002-2007

D. 1997-2002

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Correct Answer: Option C

Explanation:
The Tenth Five Year Plan covered 2002-2007.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Rangarajan Committee' on poverty submitted its report in which year?

A. 2011

B. 2018

C. 2016

D. 2014

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Correct Answer: Option D

Explanation:
The Rangarajan Committee on poverty submitted its report in 2014.

This question belongs to: Economy GK Economy Set 1

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