Inflation Quiz
Practice quiz on Inflation (General Knowledge). 10 exam-style questions with explanations.
About This Quiz
Inflation Quiz — Questions with Solutions
All 10 questions from this quiz with the correct answer and explanation. Attempt them yourself first, then open each solution to check your reasoning.
Q1.Inflation means a continuous rise in
- A.Price level
- B.Production
- C.Exports
- D.Employment
Show answer
Answer: A. Price level
General price rise.
Q2.Inflation in India is mainly measured by
- A.Sensex
- B.CPI and WPI
- C.Repo rate
- D.GDP
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Answer: B. CPI and WPI
Consumer and Wholesale Price Indices.
Q3.Deflation means
- A.Fall in the general price level
- B.Increase in output
- C.Increase in wages
- D.Rise in prices
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Answer: A. Fall in the general price level
Falling prices.
Q4.Which of the following helps control inflation?
- A.Printing more money
- B.Lowering taxes only
- C.Increasing subsidies
- D.Raising interest rates
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Answer: D. Raising interest rates
Tight monetary policy.
Q5.The RBI's inflation target under the flexible framework is
- A.0%
- B.10%
- C.20%
- D.4% (+/- 2%)
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Answer: D. 4% (+/- 2%)
4% with a band of 2-6%.
Q6.Stagflation is a combination of
- A.Low inflation and growth
- B.High inflation and high unemployment
- C.Deflation
- D.High growth and low prices
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Answer: B. High inflation and high unemployment
Stagnation plus inflation.
Q7.Demand-pull inflation occurs when
- A.Demand exceeds supply
- B.Taxes fall
- C.Costs fall
- D.Supply exceeds demand
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Answer: A. Demand exceeds supply
Too much demand.
Q8.WPI stands for
- A.Weighted Price Index
- B.Wholesale Price Index
- C.Wage Price Index
- D.World Price Index
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Answer: B. Wholesale Price Index
WPI.
Q9.Hyperinflation is
- A.Extremely rapid price rise
- B.Falling prices
- C.Slow inflation
- D.No inflation
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Answer: A. Extremely rapid price rise
Very high inflation.
Q10.The CPI is released by
- A.SEBI
- B.MoSPI / NSO
- C.NITI Aayog
- D.RBI
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Answer: B. MoSPI / NSO
National Statistical Office.
Frequently Asked Questions
Is Inflation Quiz free to attempt on AajExam?
Yes. Inflation Quiz is completely free. You only need a free AajExam account to track your score, view detailed solutions and unlock cross-attempt analytics.
How long does it take to complete Inflation Quiz?
Inflation Quiz runs on a 10-minute timer in real exam-style conditions. The clock starts the moment you click Start, mirroring the time pressure of the actual exam.
Are detailed solutions provided?
Yes. Every question on Inflation Quiz ships with a complete step-by-step solution, the underlying concept, and (where applicable) shortcut tricks. You can also discuss any question with the AajExam community.
Can I attempt Inflation Quiz multiple times?
Yes. You can attempt this quiz as many times as you like. Each attempt is recorded separately so you can track improvement in score, accuracy and time-management.
Which government exams does this quiz prepare me for?
Inflation questions appear regularly in SSC CGL, CHSL, MTS, GD; IBPS PO, Clerk; SBI PO, Clerk; RRB NTPC, Group D; UPSC prelims and most State PSC exams. The specific weightage varies by exam — check the exam pattern on the corresponding AajExam exam page for details.