Suppose that the unemployment rate falls from 6 percent to 5 percent and the inflation rate falls from 3 percent to 2 percent. Which of the following best explains these trends?

Consider the following with respect to the term 'Core Inflation': A) Core Inflation is the inflation rate of a particular basket of commodities. B) Core Inflation is the sudden increase in prices of certain items of food grains.C) Core inflation is caused by supply shock in certain essential commodities.

A

Only A

B

Only B

C

Only C

D

Only A and B

Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer:
Assertion (A) The nominal interest rate comprises of a real interest rate and an expected rate of inflation and it adjusts when the inflation rate is expected to change. Hence, in the perfect international capital markets, real rate of returns are equal in the two countries.
Reason (R) The international fisher effects states that the nominal interest rate differential must be equal to the expected inflation rate differential In the two countries.

A

Both (A) and (R) are correct and (R) is the right explanation of (A)

B

Both (A) and (R) are correct, but (R) is not the right explanation of (A)

C

(A) is correct, but (R) is not correct

D

Both (A) and (R) are incorrect

Read the following.
Unions demand high wages to counter inflationary pressures on the economic conditions of the working class. Higher wages enhance the purchasing power of the workers, there by raising inflation.
Which of the following inferences are wrong?
1. Unions have the sole purpose of improving the economic conditions of workers.
2. Enhanced wages increase the purchasing power of workers.
3. Inflation and purchasing power are negatively correlated.
4. Inflation drives unions to go for demanding higher wages.

A

1 and 3

B

2 and 3

C

3 and 4

D

Only 3

Direction : Two statements I and II are given. These statement may be either independent causes or may be effects of independent causes or a common cause. One of these statements may be the effect of the other statements. Read both the statements and decide which of the following answer choice correctly depicts the relationship between these two statements. Mark answer :

I. The Government has reduced the prices of petroleum products by five percent a week after increasing the prices by ten percent.
II. The rate of inflation dropped marginally during the last week.

A

Statement I is the cause and statement II is its effect.

B

Statement II is the cause and statement I is its effect.

C

Both the statements I and II are independent causes.

D

Both the statements I and II are effects of independent causes.

E

Both the statements I and II are effects of some common cause.

With reference to inflation, which of the following statement is/are correct?
1. Expansion of credit increase inflation
2. Inflation leads favourable trade surplus
Select the correct answer

A

Only 1

B

Only 2

C

Both 1 and 2

D

Neither 1 nor 2

The rate of increase of the price of sugar is observed to be two percent more than the inflation rate expressed in percentage. The price of sugar, on January 1, 1994 is Rs. 20 per kg. The inflation rates of the years 1994 and 1995 are expected to be 8% each. The expected price of sugar on January 1, 1996 would be

A

Rs. 23.60

B

Rs. 24

C

Rs. 24.20

D

Rs. 24.60

E

None of these

In the following question the 1st and the last part of the sentence/passage are numbered 1 and 6. The rest of the sentence/ passage is split into fourparts and named P, Q, R and S. These four parts are not given in their proper order. Read the sentence/passage and find out which of the four combinations iscorrect. 1. Prices of food products are going up.
P. Seven straight weeks of rising prices have burnt holes in common man's pockets.
Q. But it ruled out any "blind control" to rein in the increasing rates.
R. Wholesale price-based inflation has already touched over a three-year high.
S. The government has admitted that containing inflation would be a more difficult task.
6. This may hurt economic growth and reforms.

A

SQRP

B

PQRS

C

PRSQ

D

RSQP

The question below consists of a set of labelled sentences. These sentences, when properly sequenced form a coherent paragraph. Select the mostlogical order of sentences from among the options. P: All these ensure that the world we live in grows a new skin every few years.
Q: These influences do, of course, work on humankind but they have the greatest impact on that section of society which is on the threshold of discovery-discoveryof the self, of life and of living.
R: The life and times of two generations cannot be identical or even similar, thanks to modern research, progress in science, faster and easier communications andeven distasteful things like inflation and population explosion.
S: These changes in due course affect our thinking and influence our attitudes, expectations, behavioural patterns and values.

A

PSQR

B

RPSQ

C

QSPR

D

QPSR

Company P and Q are two famous clothing companies in the city. Customers have complained that the staff at Company P are unaware of modern trends and seem to take no interest in understanding customer expectations. The staff at Company Q is knowledgeable and is aware of modern trends. What can you infer?

A

Company P is more competent than Company Q

B

Company Q is more competent than Company P

C

Company P is at the same level as Company Q in terms of competency

D

Competency cannot be compared

An inflation rate including in quoted interest rate on security, is inflation rate

A

expected over security life

B

expected at deferred call

C

at bond issuance

D

expected at time of maturity