QUIZ – 2019: INSIGHTS STATIC QUIZ, 14 DECEMBER 2019 – ECONOMY

Solution: d)

A reserve tranche is a portion of the required quota of currency each member country must provide to the International Monetary Fund (IMF) that can be utilized for its own purposes—without a service fee or economic reform conditions.

Solution: d)

Printing money just for meeting a deficit creates over flow of money into the market creating hyperinflation. So, RBI usually don’t take such measure.

Solution: d)

A prime rate or prime lending rate is an interest rate used by banks, usually the interest rate at which banks lend to favoured customers—i.e., those with good credit.

Solution: b)

The all India index of Industrial Production (IIP) is compiled and published monthly by the Central Statistical Organization (CSO).

CPI(Urban) and CPI(Rural) are compiled by Central Statistical Organisation.

CPI for Industrial workers CPI(IW) compiled by Labour Bureau.

In India, Office of Economic Advisor (OEA), Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry calculates the Wholesale Price Index (WPI).

Solution: b)

Retail inflation had surged to a 40-month high of 5.54% in November 2019, driven by rising food inflation.

This combination of contraction in industrial activity and rising inflation has led experts to fear that India is entering a phase of stagflation (a situation in which there is persistent high inflation combined with stagnant or declining demand).

Source