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GS Paper IUPSC Prelims 2010
Banking & Financial System
Question No. 119Interactive Test Mode
00:00
+2-0.66

Q119. Which one of the following statements is an appropriate description of deflation?

Which one of the following statements is an appropriate description of deflation?

Select the correct option below (or cross out options to eliminate)
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Official Answer Key & Detailed Solution

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Official UPSC Answer KeyUPSC Prelims 2010 • Indian Economy

Correct Answer: Option (C) — It is a persistent fall in the general price level of goods and services

Concept & Option Breakdown

Standard Reference Verified

• Deflation is defined as a sustained and persistent decrease in the general price level of goods and services across the economy (negative inflation rate). • A sudden fall in currency value against foreign currencies is currency depreciation/devaluation. • A prolonged, deep recession is termed an economic depression. • A reduction in the rate of inflation while prices are still rising is termed disinflation.

Elimination Heuristic & Exam Approach

Distinguish key economic terms: Deflation = negative inflation (falling price level); Disinflation = slowing rate of inflation.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2010 (Q119)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Banking & Financial System
Official Answer KeyOption (C) — It is a persistent fall in the general price level of goods and services

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Frequently Asked Questions — UPSC Prelims 2010 Q119

What is the official answer for UPSC Prelims 2010 GS Paper I Question 119 (Indian Economy)?

The official UPSC answer key for this 2010 Indian Economy (Banking & Financial System) question is Option (C): "It is a persistent fall in the general price level of goods and services". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2010 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Banking & Financial System". You can explore all repeated questions from Banking & Financial System in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Banking & Financial System UPSC Prelims question using option elimination?

Distinguish key economic terms: Deflation = negative inflation (falling price level); Disinflation = slowing rate of inflation.

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