Previous year MCQs

Economy UPPSC 1993 GS-I
Question

In deficit financing, the difference between expenditure and revenue is covered by printing new notes. Meaning of this sentence is Economic development. But if it is unsuccessful then the condition arise is known as?

Answer & Solution

Answer: (Detailed Solution Below)

Option D: Currency inflation

Detailed Solution:

The correct answer is “Currency inflation”.
In deficit financing, when the government covers the difference between expenditure and revenue by printing new currency, it can lead to an increase in the money supply. If this approach is unsuccessful, it typically results in currency inflation, where the value of money decreases and prices rise due to an excess supply of money in the economy.

Similar Questions:

Which one of the following is different from the others from the point of view of Tax relief to individuals:
  1. A) National Savings Certificate
  2. B) Public Provident Fund
  3. C) Indira Vikas Patra
  4. D) National Savings Scheme
Assertion (A): Presently, there is no clear picture about the extent of poverty in India.
Reason (R): There have been major shifts in the strategy of poverty eradication programmes.

Code:
  1. A) Both A and R are true and R is the correct explanation of A
  2. B) Both A and R are true but R is not the correct explanation of A
  3. C) A is true but R is false
  4. D) A is false but R is true
The Hindu rate of growth refers to the growth rate of:
  1. A) Per Capita Income
  2. B) National Income
  3. C) Population
  4. D) Literacy
Balance of Payment includes
  1. A) Visible Trade
  2. B) Invisible Trade
  3. C) Debts
  4. D) All the above
Motilal Nehru was the leader of Swaraj Dal. Which of the following was not included in the Swaraj Party?
  1. A) Srinivasa Ayangar
  2. B) Chittaranjan Das
  3. C) Vitthal Bhai Patel
  4. D) C. Rajagopalachari
Given below are two statements, one is labeled as Assertion (A) and the other as Reason (R).

Assertion (A): During the 20th century, poverty and poor people have become the subject of our concern and duty,
Reason (R) : Strategically there was lack of targeted actions due to which this issue got momentum.

Select the correct answer from the code given below :
Code:
  1. A) (A) is false but (R) is true
  2. B) (A) is true but (R) is false
  3. C) Both (A) and (R) are true but (R) is not the correct explanation of (A)
  4. D) Both (A) and (R) are true and (R) is the correct explanation of (A)
Highest Silver producing country in the World is:
  1. A) Canada
  2. B) India
  3. C) Mexico
  4. D) America
In 1919, who was elected as the president of All India Khilafat Movement?
  1. A) Mahatma Gandhi
  2. B) Mohammad Ali Jinnah
  3. C) Maulana Shaukat Ali
  4. D) Moti Lal Nehru
Source of Vitamin D is:
  1. A) Lemon
  2. B) Sun rays
  3. C) Orange
  4. D) Cashew nut
In February 1922 Gandhiji was forced to postpone Non-Cooperation Movement because of the:
  1. A) Violence at Chauri Chaura and other places
  2. B) Disputes
  3. C) Government suppression
  4. D) Rush in the jails
Which among the following are the sources of current revenue for the Central Govt?

I. Corporate Tax
II. Profit from Public Enterprises
III. Sale of National Savings Certificates
IV. Loans received from the World Bank
V. Excise duties

Select the correct answer from the codes given below:
Codes:
  1. A) I, II and III
  2. B) II, III and IV
  3. C) III, IV and V
  4. D) I, II and V
Given below are two statements one is labelled as Assertion (A) and other as Reason (R) :

Assertion (A) : The government faces a tough time tackling the bottleneck inflation.
Reason (R) : The situation is due to deficiencies existing in the economy such as supply bottleneck and inefficient distribution.

Select the correct answer from the codes given below.
Codes :
  1. A) Both (A) and (R) are true and (R) is correct explanation of (A)
  2. B) Both (A) and (R) are true, but (R) is not correct explanation of (A)
  3. C) (A) is true, but (R) is false
  4. D) (A) is false, but (R) is true