XII - ECONOMICS : Board Practice Qns. (Dr.R.Mohan-8608119614)

A landmark outcome of the 2023 G20 New Delhi Summit was the formal inclusion of a major regional bloc as a permanent member. This reflects a push for greater global governance inclusivity, making G20 into "G21". Which bloc was added, in the summit?

• The Association of Southeast Asian Nations (ASEAN)
  

• The African Union (AU)

• The European Union (EU) – with enhanced status

• The Gulf Cooperation Council (GCC)

If the Reserve Bank of India wants to curb the speculative rise in silver prices driven by excess liquidity, which monetary policy tool is it most likely to use?

• Reduce Cash Reserve Ratio (CRR)

• Increase Repo Rate

• Buy government securities via Open Market Operations (OMOs)

• Decrease the Marginal Standing Facility (MSF) rate

Assertion (A) Railways brought a significant change

in the structure of the Indian economy.

Reason (R) It enabled people to break geographical

and cultural barriers and promoted commercialisation

of agriculture.

Alternatives

• Assertion is true, but Reason is false

• Assertion is false, but Reason is true

• Both Assertion and Reason are true and Reason

  is the correct explanation of Assertion.

• Both Assertion and Reason are true, but Reason is

  not the correct explanation of Assertion.

Read the following statements carefully:

Statement 1 – Stock variables are those variables whose quantity is measured at a particular point of time.

Statement 2 - we can measure a change in stock over a specific period of time. Such changes in stocks are flows.

In the light of the given statements, choose the correct alternative from the following:

• Statement 1 is true and statement 2 is false

• Statement 1 is false and statement 2 is true

• Both statements 1 and 2 are true

• Both statements 1 and 2 are false

Read the following statements carefully:

Statement 1 – Mixed income of self-employed is the income of own account workers and unincorporated enterprises.

Statement 2 – Mixed income of self-employed is not included in the estimation of national income.

In the light of the given statements, choose the correct alternative from the following:

• Statement 1 is true and statement 2 is false

• Statement 1 is false and statement 2 is true

• Both statements 1 and 2 are true

• Both statements 1 and 2 are false

A company located in India receives a loan from a company located abroad. How is this transaction recorded in India’s balance of payments account?

(Choose the correct alternative)

• Credit side of current account            

• Debit side of current account

• Credit side of capital account             

• Credit side of capital account

An Indian company located in India invests in a company located abroad. This transaction is entered in India’s balance of payments account on:

(Choose the correct alternative).

• Credit side of current account            

• Debit side of current account

• Credit side of capital account             

• Debit side of capital account

Statement 1: AD is a flow concept

Statement 2: AD and AS are the major tools of macroeconomics analysis.

In the light of the given alternatives, choose the correct alternative from the following:

• Reserve Bank of IndiaStatement 1 is true and statement 2 is false.

• Statement 1 is false and statement 2 is true

• Both statements 1 and 2 are true

• Both statements 1 and 2 are false

The Government can achieve its budget objective of ‘Redistribution of Income’ by____________

(Fill up the blank with correct alternative)

• Managing the General Price Level in the economy to the desired level.

• Increasing the Gross Domestic Products (GDP) of the economy.

• Bringing the production of goods and services under its direct and absolute control.

• Rationalisation of taxes in pro-poor direction.

If the consumption function of an economy is C = 100+0.4Y, then find out value of investment multiplier>                                                       (Choose the correct alternative)

• 0.4

• 2.5

• 0.6

• 1.67