1st April Static Quiz 2021
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1st April Static Quiz 2021 for UPSC Prelims
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- Question 1 of 5
1. Question
Consider the following statements with reference to inflation:
1. Inflation reduces the purchasing power of the currency.
2. Producers are worst affected by inflation.
Which of the statements given above is/are correct?CorrectAnswer: A
Producers are worst affected by fall in prices or deflation. Their profit level falls due to fall
in prices forcing them to reduce investment. Hence, statement 2 is not correct.IncorrectAnswer: A
Producers are worst affected by fall in prices or deflation. Their profit level falls due to fall
in prices forcing them to reduce investment. Hence, statement 2 is not correct. - Question 2 of 5
2. Question
With reference to Special Drawing Rights (SDR), consider the following statements:
1. It is used as an international currency to facilitate smooth trade between nations.
2. Its value is determined by a basket of currencies which includes the Indian Rupee.
Which of the statements given above is/are correct?CorrectAnswer: D
Statement 1 is not correct: The SDR serves as the unit of account of the IMF and some other
international organizations. The SDR is neither a currency nor a claim on the IMF. Rather, it is a
potential claim on the freely usable currencies of IMF members. SDRs can be exchanged for these
currencies.Statement 2 is not correct: SDR basket currencies are shown below. It does not include the Indian
Rupee.IncorrectAnswer: D
Statement 1 is not correct: The SDR serves as the unit of account of the IMF and some other
international organizations. The SDR is neither a currency nor a claim on the IMF. Rather, it is a
potential claim on the freely usable currencies of IMF members. SDRs can be exchanged for these
currencies.Statement 2 is not correct: SDR basket currencies are shown below. It does not include the Indian
Rupee. - Question 3 of 5
3. Question
Which of the following is/are correct with reference to the National Disposable Income?
1. It gives an idea of what is the maximum amount of goods and services the domestic economy has at its disposal.
2. It includes transfers from the rest of the world such as aids and gifts.
Select the correct answer using the code given below.CorrectWhich of the following is/are correct with reference to the National Disposable Income?
1. It gives an idea of what is the maximum amount of goods and services the domestic economy has at its disposal.
2. It includes transfers from the rest of the world such as aids and gifts.Answer: C
Both the statements are correctIncorrectWhich of the following is/are correct with reference to the National Disposable Income?
1. It gives an idea of what is the maximum amount of goods and services the domestic economy has at its disposal.
2. It includes transfers from the rest of the world such as aids and gifts.Answer: C
Both the statements are correct - Question 4 of 5
4. Question
Which of the following statements is/are correct with reference to Stagflation?
1. Stagflation refers to a state of an economy that is experiencing a simultaneous increase in inflation and
rising unemployment.
2. The occurrence of stagflation proves the theory behind the Philips curve.
Select the correct answer using the code given below.CorrectAnswer: A
The theory claims that economic growth comes with inflation, which in turn should lead to more jobs and
less unemployment. However, the concept has been somewhat disproven empirically due to the
occurrence of stagflation in the 1970s, when there were high levels of both inflation and
unemployment. Hence, statement 2 is not correct.IncorrectAnswer: A
The theory claims that economic growth comes with inflation, which in turn should lead to more jobs and
less unemployment. However, the concept has been somewhat disproven empirically due to the
occurrence of stagflation in the 1970s, when there were high levels of both inflation and
unemployment. Hence, statement 2 is not correct. - Question 5 of 5
5. Question
Which of the following indices is/are published by the World Bank?
1. Ease of Doing Business Index
2. Human Development Index
3. Logistics Performance Index
Select the correct answer using the code given below.CorrectAnswer: B
IncorrectAnswer: B
