Inflation and price levels — UPSC Prelims PYQs
10 questions in this bank come from Inflation and price levels, spanning UPSC Prelims papers from 2011 to 2022. Every question here carries all four options, the correct answer and a full explanation.
It has appeared in 6 of the last 16 papers, most heavily in 2011 with 3 questions. That makes it an occasional area rather than a fixture.
The themes examined most often within it are economic implications of inflation (3), effects of inflation on financial instruments (3), causes of inflation (2), inflation measurement indices (2) and Agricultural Policy and Food Economy (1). Those counts are of questions in which the theme is examined, not merely mentioned.
Between them they draw on 11 distinct themes, so this is a broader area than a single revision note can cover. That is 0.7% of the 1433 questions in the bank — useful for deciding how much revision time it deserves.
Its weight has held steady, at roughly 0.8 questions a year across the last five papers.
It was not examined in 10 of those papers. Each question below links to its full explanation and to related questions on the same theme from other years, so a weak area can be worked through in one pass rather than hunted for paper by paper.
UPSC Prelims 20222 questions
- Economy
With reference to Convertible Bonds, consider the following statements: 1. As there is an option to exchange the bond for equity, Convertible Bonds pay a lower rate of interest. 2. The option to convert to equity affords the bondholder a degree of indexation to rising consumer prices. Which of the statements given above is/are correct?
- Economy
With reference to the Indian economy, what are the advantages of “Inflation-Indexed Bonds (IIBs)”? 1. Government can reduce the coupon rates on its borrowing by way of IIBs. 2. IIBs provide protection to the investors from uncertainty regarding inflation. 3. The interest received as well as capital gains on IIBs are not taxable. Which of the statements given above are correct?
UPSC Prelims 20211 question
UPSC Prelims 20201 question
UPSC Prelims 20141 question
UPSC Prelims 20132 questions
- Economy
Consider the following statements: 1. Inflation benefits the debtors. 2. Inflation benefits the bond-holders. Which of the statements given above is/are correct?
- Economy
A rise in the general level of prices may be caused by: 1. An increase in the money supply 2. A decrease in the aggregate level of output 3. An increase in the effective demand Select the correct answer using the codes given below:
UPSC Prelims 20113 questions
- Economy
A rapid increase in the rate of inflation is sometimes attributed to the “base effect”. What is “base effect”?
- Economy
Economic growth is usually coupled with:
- Economy
India has experienced persistent and high food inflation in the recent past. What could be the reasons? 1. Due to a gradual switchover to the cultivation of commercial crops, the area Under cultivation of food grains has steadily decreased in the last five years by about 30%. 2. As a consequence of increasing incomes, the consu- mption patterns of the people have undergone a significant change. 3. The food supply chain has structural constraints. Which of the statements given above are correct?