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MACRO AND IED

Total questions: 40

Worksheet time: 23mins

Name
Class
Date
1.

What is the Cash Reserve Ratio (CRR)?

a)

the fraction of the deposits that commercial banks lend to the customers

b)

the fraction of the deposits that RBI must keep with commercial banks

c)

the fraction of the deposits that commercial banks must keep with RBI

2.

What is the reserve deposit ration (rdr)?

a)

the proportion of money RBI lends to commercial banks

b)

the proportion of total deposits commercial banks keep as reserves

c)

the total proportion of money that commercial banks lend to the customers

3.

What possess general acceptability?

a)

Bank draft

b)

Money

c)

Bill of exchange

4.

Which bank is called lender of last resort?

a)

Commercial bank

b)

Agricultural bank

c)

Central bank

5.

Which bank enjoys monopoly power of Note issue?

a)

NABARD

b)

Commercial Bank

c)

Central Bank

6.

What is the name of Central Bank in India?

a)

SBI

b)

RBI

c)

PNB

7.

Deposits which are payable after the expiry of a fixed period are called -

a)

time deposits.

b)

demand deposits.

c)

NONE

8.

What is the ratio of deposits which commercial banks are required to keep with themselves called?

a)

CRR

b)

SLR

c)

both

9.

The rate at which central bank lends to commercial banks is called?

a)

SLR

b)

CRR

c)

bank rate

10.

Buying and selling of government securities by the central bank from/to banks is called?

a)

open market operations

b)

margin

c)

banking

11.
What is inflation?
a)
rise in all prices
b)
rise in most prices
c)
rise in some prices
d)
rise in general prices
12.
Who is most likely to be hurt by inflation?
a)
someone who borrowed money
b)
a retiree on a fixed income
c)
a business owner
d)
the U.S. government
13.

While calculating NNP(FC) Using Income Method, we always focus on items of:

a)

Expenditure

b)

Income

c)

Value added

d)

All of the above

14.

Income from sale of shares, bond and Debentures will not be included in National Income.

a)

True

b)

False

15.

Durable goods purchased by government for military purposes are?

a)

final goods

b)

intermediate goods

c)

material goods

d)

non material goods

16.

Flow of factor services from households to firms and the flow of goods and services from firms to households is called

a)

money flow

b)

income flow

c)

product flow

d)

real flow

17.

Which of the following is not one of the classifications of factor incomes?

a)

compensation of employees

b)

subsidies

c)

mixed income

d)

operating surplus

18.

The Circular Flow Diagram is a model showing

a)

that the different sectors of the economy are interdependent.

b)

how the market system works.

c)

the relationship between major sectors of the economy.

d)

the relative importance of the different sectors of the economy.

19.

GNP at MP = ______

a)

GDPMP – Depreciation

b)

GDPMP + Depreciation

c)

GDPMP ÷ Depreciation

d)

GDPMP + Net factor income from abroad

20.

Who all are normal citizens of india?

1. An Indian girl studying in USA since 2019

2. A korean working in WHO office in delhi for 2 years

3. An american diplomat working in india since 2017

4. Indian ambassador working in singapore

a)

2. and 4.

b)

1. 2. and 4.

c)

2. 3. and 4.

d)

all of the above

21.

Which services are provided by families to a firm?

a)

land

b)

labour

c)

capital and enterprise

d)

all of the above

22.

1. Read the following statement- Assertion (A) and Reason (R). Choose one of the correct alternatives given below

Assertion: Some efforts were made by the Colonial Regime to improve infrastructure facilities in India.

Reason: The real objective of the British was to subserve various Colonial interests.

a)

Both A and R are true but R is the correct explanation of A.

b)

Both A and R are true but R is not correct explanation of A.

c)

A is true but R is false.

d)

A is false bu

23.

1. Assertion (A): The two important industries which were adversely affected by partition were Cotton textile and Jute industry.

Reason (R): India faced problem of rehabilitation of large number of refugees from Pakistan.

a)

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

b)

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion

c)

Assertion (A) is true but Reason (R) is false.

d)

Assertion (A) is false but Reason (R) is true

24.

1. Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:

Assertion (A): The construction of railways led to huge economic losses to the Indian economy.

Reason (R): It enhanced commercialization of Indian agriculture, which adversely affected the comparative self-sufficiency of the village economies in India.

a)

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

b)

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

c)

Assertion (A) is true but Reason (R) is false.

d)

Assertion (A) is false but Reason (R) is true.

25.

Assertion (A): Railways was the most important infrastructure developed during the British period.

Reason (R) : Railways enabled people to undertake long distance travel. It broke geographical and cultural barriers which promoted national integration.

a)

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

b)

Both Assertion (A) and Reason (R) are true and Reason (R) is not the

c)

Assertion (A) is true but Reason (R) is false. correct explanation of Assertion(A).

d)

Assertion (A) is false but Reason (R) is true.

26.

10. Assertion (A): India inherited a well-developed infrastructure from the British.

Reason (R): Britishers developed roads and introduced railways in India.

a)

A and R both correct. R is correct explanation of A.

b)

A and R both correct. R is not the correct explanation of A.

c)

A is true but R is false.

d)

A is false but R is true.

27.

1. Read the following statement- Assertion (A) and Reason (R). Choose one of the correct alternatives given below

Assertion: Some efforts were made by the Colonial Regime to improve infrastructure facilities in India.

Reason: The real objective of the British was to subserve various Colonial interests.

a)

Both A and R are true but R is the correct explanation of A.

b)

Both A and R are true but R is not correct explanation of A.

c)

A is true but R is false.

d)

1) A is false but R is true.

28.

10. Assertion (A) : The restrictive policies of commodity production, trade and tariff pursued by the Colonial government adversely affected the structure, composition and volume of India’s foreign trade.

Reason (R) : The export surplus generated during colonial period did not result in any flow of gold or silver into India.

a)

b)

c)

d)

a)

Both Assertion (A) and Reason (R) are true and the Reason (R) is the correct explanation of Assertion (A)

b)

Both Assertion (A) and Reason (R) are true and the Reason (R) is not the correct explanation of Assertion (A)

c)

Assertion (A) is true but Reason (R) is false

d)

Assertion (A) is false but Reason (R) is true

29.

1. Assertion: Colonial government levied 0% import duty on British goods imported in India.

Reason: Colonial government systematically destroyed Indian handicraft industry.

a)

Both A and R are true and R is the correct explanation of A.

b)

Both A and R are true but R is NOT the correct explanation of A.

c)

A is true but R is false.

D - A is false but R is true

d)

Both A and R are false

30.

Assertion (A): Railways was the most important infrastructure developed during the British period.

Reason (R) : Railways enabled people to undertake long distance travel. It broke geographical and cultural barriers which promoted national integration.

a)

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

b)

Both Assertion (A) and Reason (R) are true and Reason (R) is not the

c)

Assertion (A) is true but Reason (R) is false. correct explanation of Assertion(A).

d)

Assertion (A) is false but Reason (R) is true.

31.

1. Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:

Assertion (A): The construction of railways led to huge economic losses to the Indian economy.

Reason (R): It enhanced commercialization of Indian agriculture, which adversely affected the comparative self-sufficiency of the village economies in India.

a)

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

b)

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

c)

Assertion (A) is true but Reason (R) is false.

d)

Assertion (A) is false but Reason (R) is true.

32.

Which services are provided by families to a firm?

a)

land

b)

labour

c)

capital and enterprise

d)

all of the above

33.

A straight line across the width of the note is called __________

a)

Secure mark

b)

Security thread

c)

Silver thread

34.

Demonetisation refers to withdrawal of:

a)

Limited Legal Tender from the currency

b)

Legal Tender from the currency

c)

Debt from government

d)

None of the above

35.

Which body (authority) supervises the functioning of formal sources of loans?

a)

Finance Ministry

b)

Head Office of each Bank

c)

Reserve Bank

d)

Cooperative Societies

36.

Who issues the currency notes in India?

a)

Currency notes are issued by the Finance Commission.

b)

All the nationalized banks can issue the currency notes.

c)

Only Reserve Bank of India can issue currency notes.

d)

Any individual or organization can issue currency notes with the permission of the govt.

37.

People also have the provision to withdraw the money as and when they require the deposits in the bank accounts to be withdrawn, what are these deposits called?

a)

Fixed Deposits

b)

Savings

c)

Demand Deposits

d)

Demand Drafts

38.

A ………... is a paper instructing the bank to pay a specific amount from the person’s account to the person in whose name it has been issued?

a)

Deposit slip

b)

Withdrawal slip

c)

ATM facility

d)

Cheque

39.

What came after grains and cattle as a medium of exchange in India?

a)

Currency notes

b)

metallic coins — gold, silver, copper

c)

Barter System

d)

Value for land

40.

Demonetisation refers to withdrawal of:

a)

Limited Legal Tender from the currency

b)

Legal Tender from the currency

c)

Debt from government

d)

None of the above