Which of the following is a measure to control inflation? MCQ with Answer and Explanation

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Which of the following is a measure to control inflation?

A. Reduction in taxes during high inflation

B. Increase in government expenditure

C. Increase in CRR and SLR

D. Reduction in bank rate

Answer: Option C

Solution (By JKSSB Mock Tests)

Raising CRR and SLR reduces the lending capacity of banks, thereby contracting money supply and helping to control inflation.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Immediate Payment Service' is an interbank electronic fund transfer service available:

A. 24x7

B. only during banking hours

C. only at branches

D. only on weekdays

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Correct Answer: Option A

Explanation:
IMPS is available 24x7 for instant interbank fund transfers.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Digital India' programme includes which of the following pillars?

A. Only agriculture

B. Digital infrastructure, governance and digital empowerment

C. Only defence

D. Only manufacturing

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Correct Answer: Option B

Explanation:
Digital India rests on digital infrastructure, digital governance and digital empowerment.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'investment multiplier' is greater when the marginal propensity to consume is:

A. higher

B. lower

C. negative

D. zero

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Correct Answer: Option A

Explanation:
The multiplier is higher when MPC is higher because more of each income increase is spent.

This question belongs to: Economy GK Economy Set 1

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