List of top Economics Questions on Money and Inflation asked in CUET (PG)

In the case of classical economics, an increase in the nominal money stock causes

What does a bank do if there are no excess reserves?

Why is the Phillips curve negatively sloped?

Which of the followings are correct in the context of inflation?
(A) Higher aggregate demand may lead to demand-pull inflation.
(B) Higher cost of production may lead to cost-push inflation.
(C) Higher international food and fuel prices may lead to inflation.
(D) Higher indirect taxes and lower subsidy may lead to inflation.

Arrange the following rates in ascending order.
(A) Repo Rate
(B) Lending Rate
(C) Deposit Rate
(D) Reverse Repo Rate

What would happen to the rate of interest, in new equilibrium, if the money supply rises in the Mundell-Fleming model under the flexible exchange rate and absolutely free capital mobility, if the international interest rate remains the same?

If the expected rate of return from the investment projects in India be 10% per annum, and if the exchange rate becomes Rs.88 per USD from Rs.80 per USD in one year, what would be the expected amount of profit in terms of US Dollar from an investment project of 100 Million USD in India from the point of view of an investor from the USA?

Match List-I with List-II:

List-I		List-II
A	Money supply is exogenously given.	I	Post-Keynesian school
B	Money supply is demand driven and credit led.	II	Say’s law
C	Rational expectation.	III	Monetarism
D	Supply creates its own demand	IV	Neo-classical school

Choose the correct answer from the options given below

The existence of purchasing power parity in an open economy implies that
(A) The purchasing power of individuals depends on inflation rate
(B) The exchange rate between two countries' currency is equal to the ratio of their price levels
(C) Law of one price holds
(D) The price levels of all countries are equal when measured in terms of the same currency
Choose the correct answer from the options given below: