The 'reflation' refers to: MCQ with Answer and Explanation

Question

Share Report Error

The 'reflation' refers to:

A. a fall in prices

B. policy measures to stimulate the economy after a period of deflation or recession

C. increase in unemployment

D. reduction in money supply

Answer: Option B

Solution (By JKSSB Mock Tests)

Reflation refers to policies to revive the economy after deflation or recession.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

Share Report

In the context of Indian economy, which of the following is a major source of agricultural credit?

A. Foreign institutional investors

B. Commercial banks and cooperative banks

C. Mutual funds

D. Stock markets

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
Agricultural credit in India is primarily provided by commercial banks, regional rural banks and cooperative banks, along with NABARD refinancing.

This question belongs to: Economy GK Economy Set 1

Question #2

Share Report

In the context of banking theory, the 'Diamond-Dybvig' model explains:

A. Why banks never face runs

B. Only the role of banks in monitoring firms

C. The existence of banks as providers of liquidity insurance and the possibility of bank runs

D. Only the role of banks in solving adverse selection

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
The Diamond-Dybvig model shows that banks transform illiquid assets into liquid liabilities, providing liquidity insurance to depositors, but that this arrangement is vulnerable to self-fulfilling runs.

This question belongs to: Economy GK Economy Set 1