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

The ratio of total deposits that a commercial bank has to keep with Reserve Bank of India is called :                                                                                            (choose the correct alternative)

• Statutory liquidity ratio                        

• Deposit ratio

• Cash reserve ratio

• Legal reserve ratio

Assertion (A) Railways brought a signifi cant 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

• (a) Assertion is true, but Reason is false

• (b) Assertion is false, but Reason is true

• (c) Both Assertion and Reason are true and Reason

  is the correct explanation of Assertion.

• (d) 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:

• (a) Statement 1 is true and statement 2 is false

• (b) Statement 1 is false and statement 2 is true

• (c) Both statements 1 and 2 are true

• (d) 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:

• (a) Statement 1 is true and statement 2 is false

• (b) Statement 1 is false and statement 2 is true

• (c) Both statements 1 and 2 are true

• (d) Both statements 1 and 2 are false

Desired saving during an accounting year is called:

                             

                                

• (A) ex-ante saving 

• (B) ex-post saving

• (C) actual saving

• (D) none of these

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)

• (a)    Credit side of current account            

• (b) Debit side of current account

• (c) Credit side of capital account             

• (d) 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).

•             (a) Credit side of current account            

• (b) Debit side of current account

•             (c) Credit side of capital account             

• (d) 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)

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

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

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

• (d) 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