05th December, 2016 (CSAT)



Many Asian nations transformed from poverty into global competitors over the past few years. From past ten years, Asian economies expanded at average annual rates that are several times that of advanced economies over the same period. Inflation in Asia started soaring due to spikes in oil and food prices. Policy makers and central bankers are forced to raise interest rates and limit credit to get inflation under control but these same measures suppress the investment and consumption that generates growth. The combination of slowing growth and soaring inflation makes economic policy drafting tricky. Inflation stirs up the middle classes because it can quickly erase years of hard-won personal gains. Inflation is cruel to the poor because families have to spend a larger share of their meagre incomes on necessities.

1. According to the passage, which of the following is/are true?

I. Growth rate in advanced countries was low so the effects of inflation were not felt.

II. Closing the economy to global markets will reduce inflation.

III. India has been the most severely affected by inflation.

(a) None follow

(b) Only I

(c) Only II

(d) Only III


2. A man plants 15376 apple trees in his garden and arranges them so that there are as many rows as there are apples trees in each row. The number of rows is :

(a) 124

(b) 126

(c) 134

(d) 144

Tomorrow: Next questions for practice

For previous questions refer yesterday’s post

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