Question
Which of the following can be the outcomes of very high inflation in the economy? (1) Reduction in economic growth (2) Increase in savings (3) Reduction in exports Select the correct answer using the codes below :
Solution
Inflation is a persistent increase in the general price level of goods and services in an economy over a period of time . When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value .High inflation means excessive supply of money and thus leads to rise in the cost of credit and interest rates.
More ESI Questions
- The Reserve Bank of India’s recent directives relating to ‘Storage of Payment System Data’, popularly known as data diktat command the payment system provi...
- What is the primary objective of the Open Network for Digital Commerce (ONDC)?
- In the context of Indian economy, which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’? 1. To enable the Central Bank to...
- The Reserve Bank of India regulates the commercial banks in matters of : 1. liquidity of assets 2. branch expansion 3. merger of banks 4. winding-up of b...
- What is the name of RBI’s first Global Hackathon?
- Pradhan Mantri Matsya Sampada Yojana (PMMSY) was launched in ________________.
- Commercial banks create money in the following ways:
- RBI recently cancelled the license of Sarjeraodada Naik Shirala Sahakari Bank. It is based in ____________.
- Which of the following is not one of the Domestic Systemically Important Banks (D-SIBs)?
- Which of the following services are provided at Sahaj Jan Seva Kendra under the flagship of NeGP of the Government of India? 1. Banking and Financial Servi...
