The Sermon at Benares Class 10 MCQ Questions with Answers English Chapter 10

The Sermon at Benares Class 10 MCQ Questions with Answers English Chapter 10

Check the below Online Education NCERT MCQ Questions for Class 10 English First Flight Chapter 10 The Sermon at Benares with Answers Pdf free download. MCQ Questions for Class 10 English with Answers were prepared based on the latest exam pattern. We have provided The Sermon at Benares Class 10 English MCQs Questions with Answers to help students understand the concept very well. https://ncertmcq.com/mcq-questions-for-class-10-english-with-answers/

MCQ Questions for Class 10 English First Flight Chapter 10 The Sermon at Benares with Answers

The Sermon At Benares MCQ Class 10 Question 1.
Why was Kisa Gotami sad?
(a) her only son had died.
(b) her all property was snatched.
(c) she was beaten up.
(d) None of the Above

Answer

Answer: (a) her only son had died.

Sermon At Benares MCQ Class 10 Question 2.
Where did Buddha preach his first sermon?
(a) Haridwar
(b) Benares
(c) Chennai
(d) Patliputra

Answer

Answer: (b) Benares

The Sermon At Benares Class 10 MCQ Question 3.
What is the world afflicted with?
(a) Love
(b) Diseases
(c) Death and decay
(d) None of the Above

Answer

Answer: (c) Death and decay

The Sermon At Benaras MCQ Class 10 Question 4.
What does the ripe fruit fear?
(a) Someone will eat them
(b) They will rot
(c) Falling down
(d) None of the Above

Answer

Answer: (c) Falling down

What does the ripe fruit fear?

MCQ Based On The Sermon At Benares Class 10 Question 5.
Where did Budhha sit?
(a) Peepal Tree
(b) Fig Tree
(c) Mango Tree
(d) Deodar cedar

Answer

Answer: (b) Fig Tree

MCQ Of The Sermon At Benares Class 10 Question 6.
According to Buddha, what is an inscrutable kind of suffering?
(a) loss of a loved one
(b) beating
(c) hatred
(d) verbal abuse

Answer

Answer: (a) loss of a loved one

English MCQs 10th Class  Question 7.
Those who do not grieve are _____.
(a) arrogant
(b) proud
(c) happy
(d) wise

Answer

Answer: (d) wise

Question 8.
Who is free from sorrow?
(a) who overcomes sorrow
(b) who does not see sorrow
(c) who remains happy
(d) who gives sorrow to others

Answer

Answer: (a) who overcomes sorrow

Question 9.
What did Kisa ask for to bring her son back to life?
(a) medicine
(c) money
(c) doctor
(d) prayers

Answer

Answer: (a) medicine

Question 10.
He got enlightenment after how many days?
(a) 10
(b) 15
(c) 7
(d) 1

Answer

Answer: (c) 7

Question 11.
“The wise do not _____, knowing the terms of the world”
(a) laugh
(b) smile
(c) grieve
(d) all of the above

Answer

Answer: (c) grieve

Question 12.
What does Kisa search for from house to house in the first place?
(a) mustard seed
(b) a medicine to bring her son back to life
(c) pumpkin seeds
(d) None of the above

Answer

Answer: (b) a medicine to bring her son back to life

Question 13.
Both young and adults, fools and wise fall into the power of _____
(a) life
(b) death
(c) food
(d) all of the above

Answer

Answer: (b) death

Question 14.
What did the flickering lights made her realise?
(a) she is being selfish
(b) death is common to all
(c) men are mortals
(d) all of the above

Answer

Answer: (d) all of the above

Question 15.
What was the condition imposed upon the source of the seeds?
(a) to be borrowed from a man
(b) to be borrowed from a woman
(c) to be borrowed from a child
(d) None of the above

Answer

Answer: (d) None of the above

Question 16.
What did he name the tree?
(a) Bodhi tree
(b) Buddha tree
(c) Gautama tree
(d) Siddhartha tree

Answer

Answer: (a) Bodhi tree

Question 17.
For how many years did he wander?
(a) 7
(b) 8
(c) 9
(d) 6

Answer

Answer: (a) 7

Question 18.
What was Gautama Buddha’s early name?
(a) Sidhha
(b) Sadhu
(c) Siddhartha
(d) Sidhanth

Answer

Answer: (c) Siddhartha

What was Gautama Buddha's early name?

We hope the given NCERT MCQ Questions for Class 10 English First Flight Chapter 10 The Sermon at Benares with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 10 English The Sermon at Benares MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

Fog Class 10 MCQ Questions with Answers English Poem 9

Fog Class 10 MCQ Questions with Answers English Poem 9

Check the below NCERT MCQ Questions for Class 10 English First Flight Poem 9 Fog with Answers Pdf free download. MCQ Questions for Class 10 English with Answers were prepared based on the latest exam pattern. We have provided Fog Class 10 English MCQs Questions with Answers to help students understand the concept very well. https://ncertmcq.com/mcq-questions-for-class-10-english-with-answers/

MCQ Questions for Class 10 English First Flight Poem 9 Fog with Answers

Fog Class 10 MCQ Question 1.
What is the name of the poet?
(a) Sylvia Plath
(b) Carl Sandburg
(c) Robert Frost
(d) Robert Burns

Answer

Answer: (b) Carl Sandburg

Fog Class 10 Pdf Question 2.
What does the fog look over?
(a) Over houses
(b) Over the harbour and the city.
(c) Over offices.
(d) None of the Above.

Answer

Answer: (b) Over the harbour and the city.

What does the fog look over?

Fog Poem Class 10 Pdf Question 3.
How does the fog come?
(a) Slowly and silently.
(b) Faster and silently.
(c) Faster and making noise.
(d) None of the Above.

Answer

Answer: (a) Slowly and silently.

Fog Class 10 Question 4.
What is the rhyme scheme of the poem ‘Fog’?
(a) aabbccdd
(b) abcd
(c) aabc aabc
(d) no rhyme scheme

Answer

Answer: (d) no rhyme scheme

Question 5.
What does the fog do while it looks over the city and the harbour?
(a) sits
(b) moves
(c) stands
(d) dances

Answer

Answer: (a) sits

Question 6.
What has been personified in the poem?
(a) fog
(b) city
(c) cat
(d) harbour

Answer

Answer: (a) fog

Question 7.
How does the fog arrive and depart?
(a) by announcing its arrival
(b) silently
(c) loudly
(d) both1 and 3

Answer

Answer: (b) silently

Question 8.
What has the poet compared the fog with?
(a) dog
(b) cat
(c) woman
(d) none of the above

Answer

Answer: (b) cat

Question 9.
After sitting, the fog ___
(a) Disappears
(b) sits there only
(c) moves on
(d) gets dense

Answer

Answer: (c) moves on

Question 10.
The feet of the fog are like __ feet.
(a) cat
(b) lion
(c) tiger
(d) dog

Answer

Answer: (a) cat

The feet of the fog are like __ feet.

We hope the given NCERT MCQ Questions for Class 10 English First Flight Poem 9 Fog with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 10 English Poem Fog MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

Fire and Ice Class 10 MCQ Questions with Answers English Poem 2

Fire and Ice Class 10 MCQ Questions with Answers English Poem 2

Check the below Online Education NCERT MCQ Questions for Class 10 English First Flight Poem 2 Fire and Ice with Answers Pdf free download. MCQ Questions for Class 10 English with Answers were prepared based on the latest exam pattern. We have provided Fire and Ice Class 10 English MCQs Questions with Answers to help students understand the concept very well. https://ncertmcq.com/mcq-questions-for-class-10-english-with-answers/

MCQ Questions for Class 10 English First Flight Poem 2 Fire and Ice with Answers

Question 1.
What is the name of the poet?
(a) Sylvia Plath
(b) W.B Yeats
(c) Robert Frost
(d) Robert Burns

Answer

Answer: (c) Robert Frost

What is the name of the poet?

Question 2.
Why do some people say that the world will end in ice?
(a) because love among people is increasing fast.
(b) because hatred among people is increasing fast.
(c) because lust among people is increasing fast.
(d) None of the Above

Answer

Answer: (b) because hatred among people is increasing fast.

Question 3.
What is ‘Ice’ a symbol of?
(a) Lust
(b) Love
(c) Desire
(d) Hatred

Answer

Answer: (d) Hatred

Question 4.
What is ‘fire’ a symbol of?
(a) love and new desires
(b) lust and endless desires
(c) love and beginning of a new thing.
(d) Revolution

Answer

Answer: (b) lust and endless desires

Question 5.
Where has he used personification?
(a) fire
(b) ice
(c) earth
(d) both 1 and 2

Answer

Answer: (d) both 1 and 2

Question 6.
Name the poetic device used in the line “Some say the world will end in fire”.
(a) Metaphor
(b) Imagery
(c) Alliteration
(d) Oxymoron

Answer

Answer: (b) Imagery

Question 7.
What is the rhyming scheme of the poem?
(a) abaa bcbcb
(b) aaba bcbcb
(c) aaab bcbcb
(d) abab bcbcb

Answer

Answer: (a) abaa bcbcb

Question 8.
What would suffice if the world were to perish twice?
(a) ice
(b) fire
(c) hatred
(d) both 1 and 2

Answer

Answer: (d) both 1 and 2

Question 9.
What does the poet compare fire with?
(a) hatred
(b) desire
(c) hot
(d) both 1 and 3

Answer

Answer: (b) desire

Question 10.
Name the poetic device used in the line “To say that for destruction ice is also great”.
(a) Metaphor
(b) Imagery
(c) Alliteration
(d) Oxymoron

Answer

Answer: (b) Imagery

Name the poetic device used in the line "To say that for destruction ice is also great".

We hope the given NCERT MCQ Questions for Class 10 English First Flight Poem 2 Fire and Ice with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 10 English Poem Fire and Ice MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

MCQ Questions for Class 12 Economics Unit 6 Development Experience (1947-90) and Economic Reforms Since 1991 with Answers

MCQ Questions for Class 12 Economics Unit 6 Development Experience (1947-90) and Economic Reforms Since 1991 with Answers

Check the below NCERT MCQ Questions for Class 12 Economics Unit 6 Development Experience (1947-90) and Economic Reforms Since 1991 with Answers Pdf free download. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest exam pattern. We have provided Development Experience (1947-90) and Economic Reforms Since 1991 Class 12 Economics MCQs Questions with Answers to help students understand the concept very well.

Development Experience (1947-90) and Economic Reforms Since 1991 Class 12 MCQs Questions with Answers

Economic Reforms Since 1991 Class 12 MCQs Question 1.
Industrial revolution came first in:
(a) France
(b) Germany
(c) England
(d) America.

Answer

Answer: (c) England

Industrial revolution came first in:

Economic Reforms Since 1991 MCQ Questions Question 2.
In which year first train ran on rails in India:
(a) 1950
(b) 1953
(c) 1853
(d) 1901.

Answer

Answer: (c) 1853

New Economic Policy 1991 Class 12 MCQ Question 3.
Development plans started in India in which year:
(a) 15 August 1947
(b) 1 April 1951
(c) 26 January 1950
(d) 15 July 1969.

Answer

Answer: (b) 1 April 1951

Development Experience (1947-90) And Economic Reforms Since 1991 MCQ Question 4.
Which of the following organisation frame 5 year plan:
(a) Yojana Ayog
(b) National development
(c) Finance ministry
(d) Home ministry.

Answer

Answer: (a) Yojana Ayog

MCQs On Economic Reforms In India Question 5.
In the year 1951 what % of contribution was from agriculture towards national income:
(a) 72%
(b) 65%
(c) 59%
(d) 51%.

Answer

Answer: (c) 59%

MCQ On Economic Reforms In India Question 6.
In India green revolution was successful for:
(a) Wheat and Potato
(b) Wheat and Rice
(c) Cereals and Rice
(d) Pulses and Com.

Answer

Answer: (b) Wheat and Rice

Economic Reforms Since 1991 MCQ Questions Class 12 Question 7.
Small scale industry is:
(a) Labour intensive
(b) Capital intensive
(c) Complementary to large scale industries
(d) None of these.

Answer

Answer: (a) Labour intensive

Small scale industry is:

Fill in the blanks:

1. In India iron production company TISCO was established in the year …………………….

Answer

Answer: 1907

2. In case of economic immobility industrial structure is ……………………………

Answer

Answer: Weak

3. Before British rule condition of cottage industry was ………………………..

Answer

Answer: High

4. Indian Poster Act was framed in the year ……………………………

Answer

Answer: 1898

5. In India till date use have ……………………… five year plans.

Answer

Answer: 12

6. In India during independence …………………………… was the area on which population independance was least.

Answer

Answer: Secondary

7. In planning period rate of savings and investment got ………………………………. times increased.

Answer

Answer: 2

8. ………………………….. is the main programme for organisational remedy for agriculture.

Answer

Answer: Land development

9. Declaration of National policy for farmers was done in the year …………………………..

Answer

Answer: 2007

10. At present only Number of private public sector is ……………………………..

Answer

Answer: 235

11. …………………………….. business has fear of Deflation.

Answer

Answer: International

12. At present only ………………………. type of industries are reserved.

Answer

Answer: Two

State true or false:

1. During independence 90% of working population was engaged in manufacturing unit.

Answer

Answer: False

2. Main aim of planning in India was to achieve equality.

Answer

Answer: False

3. Fourth plan started in 1969.

Answer

Answer: True

4. Indian agriculture is dependant on Monsoon.

Answer

Answer: True

5. NABARD is the best bank for agriculture.

Answer

Answer: True

6. Raw materials were exported during British rule.

Answer

Answer: False

7. In 1951 estimated age was 32 years.

Answer

Answer: True

8. First railway train ran in India from Bombay to Thane.

Answer

Answer: True

9. Chairman of Planning commission is President.

Answer

Answer: False

10. At present Planning commission has been discontinued in India.

Answer

Answer: True

11. Zamindari eradication Act was enforced first in Chennai in 1951.

Answer

Answer: True

12. Green revolution is related to food grains.

Answer

Answer: True

13. India is exporter of petroleum.

Answer

Answer: False

14. In 1991 India’s devaluation took place in three phases.

Answer

Answer: False

Match the columns:

Column A Column B
1. Colonialism (a) 18.3%
2. Literacy rate in 1951 (b) 50%
3. Year of Bombay plan (c) Economic exploitation
4. Industrial development Act (d) Investment in shares
5. Employment in agriculture (e) 1944
6. Second industrial policy (f) 1951
7. Privitization (g) 1956
8. Economic development programme (h) Economic immobility
9. Destructive effect of British rule (i) Liberalization, privatisation and globalisation.
Answer

Answer:

Column A Column B
1. Colonialism (c) Economic exploitation
2. Literacy rate in 1951 (a) 18.3%
3. Year of Bombay plan (e) 1944
4. Industrial development Act (f) 1951
5. Employment in agriculture (b) 50%
6. Second industrial policy (g) 1956
7. Privitization (d) Investment in shares
8. Economic development programme (i) Liberalization, privatisation and globalisation.
9. Destructive effect of British rule (h) Economic immobility

Answer in one word:

1. Main problem arised due to partition of country?

Answer

Answer: Scarcity of raw material

2. When did Air transport started in India?

Answer

Answer: 1927

3. Who is the chairman of Planning commission?

Answer

Answer: Prime Minister

4. Full form of M.R.T.P?

Answer

Answer: Monopoly and restrictional business

5. Iron, Coal, Cement are which type of industry?

Answer

Answer: behaviour act

6. Which are the main crops of India?

Answer

Answer: Primary industry

7. When was New Industrial Policy declared?

Answer

Answer: 1991

8. What is selling of goods to other countries called ?

Answer

Answer: Foreign trade

9. How are the natural resources utilized in International trade ?

Answer

Answer: Complete

10. What is selling of goods at low prices to other nations called ?

Answer

Answer: Deflation

11. What was trade balance in 1950-51?

Answer

Answer: -2

12. What is called the interaction among economics of the world ?

Answer

Answer: Globalization

13. When was new economic policy enforced.

Answer

Answer: 1991

Question 14.
Which is regarded as the defining year to mark the demographic transition from its first to the second decisive stage?

Answer

Answer: 1921 is regarded as the defining year to mark the demographic transition from its first to the second decisive stage.

Question 15.
When was India’s first official census operation undertaken?

Answer

Answer: In 1881.

We hope the given NCERT MCQ Questions for Class 12 Economics Unit 6 Development Experience (1947-90) and Economic Reforms Since 1991 with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 12 Economics Development Experience (1947-90) and Economic Reforms Since 1991 MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

MCQ Questions for Class 12 Economics Unit 7 Current Challenges Facing Indian Economy with Answers

MCQ Questions for Class 12 Economics Unit 7 Current Challenges Facing Indian Economy with Answers

Check the below NCERT MCQ Questions for Class 12 Economics Unit 7 Current Challenges Facing Indian Economy with Answers Pdf free download. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest exam pattern. We have provided Current Challenges Facing Indian Economy Class 12 Economics MCQs Questions with Answers to help students understand the concept very well.

Current Challenges Facing Indian Economy Class 12 MCQs Questions with Answers

Current Challenges Facing Indian Economy MCQ Question 1.
It is found in rural areas of India:
(a) Educated unemployment
(b) Disguised unemployment
(c) Seasonal unemployment
(d) Frictional unemployment.

Answer

Answer: (b) Disguised unemployment

It is found in rural areas of India:

Current Challenges Facing Indian Economy Class 12 MCQ Question 2.
What is important in organic farming:
(a) Crop rotation
(b) Animal manure
(c) Mechanical agriculture and Natural fertilizer control
(d) All of the above.

Answer

Answer: (d) All of the above.

Current Challenges Facing Indian Economy Class 12 Pdf Question 3.
Fair in villages are held:
(a) Weekly
(b) Fortnightly
(c) Daily
(d) On special occasions.

Answer

Answer: (a) Weekly

Current Challenges Facing Indian Economy Class 12 Question 4.
In 1951 number of universities in country:
(a) 25
(b) 27
(c) 36
(d) 53.

Answer

Answer: (b) 27

Current Challenges Facing Indian Economy Class 12 Important Questions Question 5.
When was state of Madhya Pradesh established:
(a) 1948
(b) 1956
(c) 1961
(d) 1856.

Answer

Answer: (b) 1956

Current Challenges Facing Indian Economy Class 12 Notes Question 6.
When price index increases it means:
(a) Value of currency increases
(b) Value of currency decreases
(c) No effect of value of currency
(d) None of the these.

Answer

Answer: (b) Value of currency decreases

MCQ Questions For Class 12 Economics Pdf Question 7.
Element of commercial energy:
(a) Coal
(b) Petroleum
(c) Gas and electricity
(d) All.

Answer

Answer: (d) All.

MCQ On Macroeconomics For Class 12 With Answers Question 8.
Energy from hot spring:
(a) Small hydro power
(b) Biomass
(c) Geothermal energy
(d) Hydro – electricity

Answer

Answer: (c) Geothermal energy

Economics Class 12 MCQ Questions Question 9.
In India supply of electricity started first:
(a) In Delhi
(b) In Chennai
(c) In Darjeeling
(d) In Bhopal.

Answer

Answer: (c) In Darjeeling

MCQ Questions For Class 12 Economics Chapter Wise Question 10.
National literacy mission is related to:
(a) Primary education
(b) High education
(c) Rural
(d) Adult education.

Answer

Answer: (d) Adult education.

National literacy mission is related to:

Fill in the blanks:

1. Economic development is ……………………..

Answer

Answer: Continuous

2. Percapita income = ……………………….. /Total population.

Answer

Answer: National income

3. Universal indicator of Quality of life is ………………………….

Answer

Answer: Three

4. Economic development leads to …………………….. pollution.

Answer

Answer: Environment

5. In approx ……………………….. % cities of India amount of sulphur – dioxide and S.P.M. is maximum.

Answer

Answer: 20

6. …………………… is a challenge for Indian economy.

Answer

Answer: Unemployment

7. For poverty eradication in Aug 1979 ………………………… plan was started.

Answer

Answer: Trisem

8. Nehru employment plan was started in …………………………

Answer

Answer: 28 April 1989

9. …………………………… % of Indian population lives in villages.

Answer

Answer: 74 – 3%

10. Main problems of farmers is …………………….. and ………………………..

Answer

Answer: Agriculture finance

11. Duration of ………………………….. loan is 15 months to 5 years.

Answer

Answer: Temporary

12. ………………………. is physical capital.

Answer

Answer: Dynamic

13. In order to improve quality of school education ……………………….. is the best organisation.

Answer

Answer: NCERT

14. In India for every 100 people there are ………………………………

Answer

Answer: 40

15. Repo Rate causes increase in consumption expenditure and …………………………… expenditure.

Answer

Answer: Investment

State true or false:

1. Poverty line is same for rural and urban areas.

Answer

Answer: False

2. Trisem plan is working at present.

Answer

Answer: False

3. Bio farming and organic farming are different.

Answer

Answer: False

4. Proportion of man in working population is higher to woman.

Answer

Answer: False

5. Rate of participation of women in rural areas as compared to urban area is higher.

Answer

Answer: True

6. By the end of 11 plan no. of unemployed people will be 480 lakh.

Answer

Answer: True

7. Inflation results in favourable settlement.

Answer

Answer: False

8. Economic development is a short term process.

Answer

Answer: False

9. Indian medical has six recognition system.

Answer

Answer: True

10. With the passing time use of electricity is decreasing in agriculture.

Answer

Answer: False

11. Life expectancy of women is less as compared to man.

Answer

Answer: False

12. Forest destruction is a result of soil erosion.

Answer

Answer: True

13. Environment includes biological and non – biological elements.

Answer

Answer: True

14. Midday meal programme started from 15 August 1995.

Answer

Answer: True

Match the columns:

Column A Column B
1. Employment Insurance Policy (a) 69%
2. Reason for poverty in India (b) 1994
3. Agriculture marketing (c) Natural reasons
4. Agriculture input (d) 16
5. According to 2011 least women women literacy rate in India (e) Biomass
6. According to 2011 Rural literacy rate (f) Shendi
7. Jawahar employment plan (g) Hybrid seed
8. Prime minister Gramoday ¥ojna (h) 64 years
9. Contingent unemployment (i) 69%
10. Non-conventional energy (j) Increase in living standard
11. Indicator of good health (k) High life expectancy
12. Life expectancy of women (l) 28 April, 1989
13. Sustainable development (m) Industrialization
14. Non-renewable resources (n) 2000-2001
15. Reasons for environment degration (o) Get finished with use.
Answer

Answer:

Column A Column B
1. Employment Insurance Policy (b) 1994
2. Reason for poverty in India (d) 16
3. Agriculture marketing (f) Shendi
4. Agriculture input (g) Hybrid seed
5. According to 2011 least women women literacy rate in India (a) 69%
6. According to 2011 Rural literacy rate (i) 69%
7. Jawahar employment plan (l) 28 April, 1989
8. Prime minister Gramoday yojna (n) 2000-2001
9. Contingent unemployment (c) Natural reasons
10. Non-conventional energy (e) Biomass
11. Indicator of good health (k) High life expectancy
12. Life expectancy of women (h) 64 years
13. Sustainable development (j) Increase in living standard
14. Non-renewable resources (o) Get finished with use.
15. Reasons for environment degration (m) Industrialization

Answer in one word:

1. Reason for poverty in India.

Answer

Answer: Increase in population

2. Person who is willing to work and have qualification too but could not get job.

Answer

Answer: Unemployed

3. Farming were chemical fertilizer and insecticides are not used.

Answer

Answer: Organic farming

4. This type of marketing started in 1912 in India.

Answer

Answer: Agriculture

5. Reason for rural unemployment.

Answer

Answer: Mechanization of agriculture

6. When was NABARD was established.

Answer

Answer: 12 July

7. Define Poverty?

Answer

Answer: Poverty refers to a state in which an individual is unable to fulfill even the basic necessities of life.

8. What are the two sources of Human capital of a nation?

Answer

Answer: 1. Investment in Education
2. Investment in health.

9. Name two indicators of educational achievement of a nation?

Answer

Answer: 1. Primary Education
2. Youth literacy rate
3. Adult literacy rate.

10. What is worker?

Answer

Answer: All those persons who are engaged in various economic activities and hence . contribute to gross domestic products, are workers.

We hope the given NCERT MCQ Questions for Class 12 Economics Unit 7 Current Challenges Facing Indian Economy with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 12 Economics Current Challenges Facing Indian Economy MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

MCQ Questions for Class 12 Economics Chapter 6 Open Economy Macroeconomics with Answers

Open Economy Macroeconomics Class 12 MCQ Online Test With Answers Questions

Check the below NCERT MCQ Questions for Class 12 Economics Chapter 6 Open Economy Macroeconomics with Answers Pdf free download. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest exam pattern. We have provided Open Economy Macroeconomics Class 12 Economics MCQs Questions with Answers to help students understand the concept very well. https://ncertmcq.com/mcq-questions-for-class-12-economics-with-answers/

Class 12 Economics Chapter 6 Open Economy Macroeconomics MCQ With Answers

Economics Class 12 Chapter 6 MCQs On Open Economy Macroeconomics

Question 1.
The price of one currency in terms of another is known as _________
(A) Foreign exchange rate
(B) Trade rate
(C) Interest rate
(D) Balance of Payment

Answer

Answer: (A) Foreign exchange rate

Question 2.
The market where the national currencies are traded for one another is known as ________
(A) Domestic exchange market
(B) Foreign exchange market
(C) Bazaar
(D) Shop

Answer

Answer: (B) Foreign exchange market

Question 3.
Increase in the value of foreign commodities is known as _________
(A) Revaluation
(B) Devaluation
(C) Inflation
(D) None of these

Answer

Answer: (B) Devaluation

Question 4.
Decrease in the value the foreign commodities is known as _________
(A) Revaluation
(B) Devaluation
(C) Deflation
(D) All of these

Answer

Answer: (A) Revaluation

Decrease in the value the foreign commodities is known as _________

Question 5.
What is the cause of the devaluation of any country’s currency?
(A) Increase in the domestic inflation rate
(B) Domestic real interest rates are less than foreign interest rates
(C) Much increase in the income
(D) All of these

Answer

Answer: (D) All of these

Question 6.
The operation of daily nature in the foreign exchange market is known as ________
(A) Spot market
(B) Forward market
(C) Domestic market
(D) International market

Answer

Answer: (A) Spot market

Question 7.
The operation of future delivery in the foreign exchange market is known as ________
(A) Spot market
(B) Current market
(C) Forward market
(D) Domestic market

Answer

Answer: (C) Forward market

Question 8.
Hybrid in management of fixed and flexible exchange rate is known as ________
(A) Managed to float
(B) Crawling Peg
(C) Wider Bands
(D) None of these

Answer

Answer: (A) Managed floating

Question 9.
When was the gold standard abandoned?
(A) 1930’s
(B) 1920’s
(C) 1940’s
(D) 1950’s

Answer

Answer: (B) 1920’s

Question 10.
Trade of visible items between the countries is known as ________
(A) Balance of Payment
(B) Balance of Trade
(C) Deficit Balance
(D) All of these

Answer

Answer: (B) Balance of Trade

Question 11.
When the import and export of visible items are equal, the situation is known as _______
(A) Balance of Trade
(B) Balance of Payment
(C) Trade Surplus
(D) Trade Deficit

Answer

Answer: (A) Balance of Trade

Question 12.
When there is a favourable balance of trade?
(A) X > M
(B) X = M
(C) X < M
(D) None of these

Answer

Answer: (A) X > M

Question 13.
When there is unfavourable balance of trade?
(A) X > M
(B) X = M
(C) X < M
(D) None of these

Answer

Answer: (C) X < M

Question 14.
The trade of visible and invisible items is known as _________
(A) Balance of Payments
(B) Balance of Trade
(C) Deficit of interest
(D) Profit

Answer

Answer: (A) Balance of Payments

Question 15.
Other things remaining unchanged, when in a country the price of foreign currency rises, national income is:
(A) Likely to rise
(B) Likely to fall
(C) Likely to rise and fall both
(D) Not affected

Answer

Answer: (A) Likely to rise

Question 16.
Other things remaining the same, when in a country the market price of foreign currency falls, national income is likely:
(A) To rise
(B) To fall
(C) To rise or to fall
(D) To remain affected

Answer

Answer: (B) To fall

Question 17.
Which one is the king of the exchange rate?
(a) Fixed Exchange Rate
(b) Flexible Exchange Rate
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (c) Both (a) and (b)

Question 18.
Which of the following is true?
(a) Fixed exchange rate is determined by the government
(b) Flexible exchange rate is determined by market forces (demand and supply of foreign exchange)
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (c) Both (a) and (b)

Question 19.
Which one is a kind of fixed exchange rate?
(a) Gold Standard System of Exchange Rate
(b) Bretton Woods System of Exchange Rate
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (c) Both (a) and (b)

Question 20.
Which one is a merit of the fixed exchange rate?
(a) Promotes Foreign Trade
(b) Induces Foreign Capital
(c) Increases Capital Formation
(d) All the above

Answer

Answer: (d) All the above

Question 21.
Which one is a demerit of the fixed exchange rate?
(a) Ignores National Interests
(b) Restricted Movement of Capital
(c) Sudden Fluctuations in Exchange Rates
(d) All the above

Answer

Answer: (d) All the above

Question 22.
Which one is a merit of the flexible exchange rate?
(a) Simple System
(b) Continuous Adjustments
(c) Improves Balance of Payments
(d) All the above

Answer

Answer: (d) All the above

Question 23.
Which one is a demerit of the flexible exchange rate?
(a) Bad Results of Low Rate
(b) Uncertainty
(c) Instability in Foreign Exchange
(d) All the above

Answer

Answer: (d) All the above

Question 24.
Which one is a source of the demand for foreign exchange?
(a) Imports of Goods and Services from Abroad
(b) Investment in Foreign Nations
(c) Gift Scheme to Foreign Nations
(d) All the above

Answer

Answer: (d) All the above

Question 25.
Foreign exchange is determined by:
(a) Demand for foreign currency
(b) Supply of foreign currency
(c) Demand and supply in the foreign exchange market
(d) None of the above

Answer

Answer: (c) Demand and supply in a foreign exchange market

Question 26.
The forms of foreign exchange market is/are:
(a) Spot market
(b) Forward market
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (c) Both (a) and (b)

Question 27.
The foreign exchange rate is determined by:
(a) Government
(b) Bargaining
(c) World Bank
(d) Demand and Supply forces

Answer

Answer: (d) Demand and Supply forces

Question 28.
By exchange rate we mean:
(a) How much local currency we have to pay for a foreign currency
(b) How much of a foreign currency we have to pay for another foreign currency
(c) The rate at which foreign currency is bought and sold
(d) All of these

Answer

Answer: (d) All of these

Question 29.
Balance of Trade =?
(a) Export of Visible Items – Imports of Visible Items
(b) Export of both Visible and Invisible Items – Import of both Visible and Invisible Items
(c) Import of Visible Items – Export of Visible Items
(d) None of the above

Answer

Answer: (a) Export of Visible Items – Imports of Visible Items

Question 30.
Which items are included in the Balance of Payments?
(a) Visible Items
(b) Invisible Items
(c) Capital Transfers
(d) All the above

Answer

Answer: (d) All the above

Question 31.
Which one is the visible item of Balance of Payments?
(a) Machine
(b) Cloth
(c) Cement
(d) All of these

Answer

Answer: (d) All of these

Question 32.
Which one is the invisible item of Balance of Payment?
(a) Banking
(b) Shipping
(c) Communication
(d) All of these

Answer

Answer: (d) All of these

Question 33.
Which one is the feature of Balance of Payment?
(a) Systematic Accounts
(b) Fixed Time Period
(c) Comprehensiveness
(d) All the above

Answer

Answer: (d) All the above

Question 34.
Which account is included in the composition of the Balance of Payments?
(a) Current Account
(b) Capital Account
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (c) Both (a) and (b)

Question 35.
Which one is the item of the Current Account?
(a) Import of Visible Items
(b) Expenses of Tourists
(c) Exports of Visible Items
(d) All the above

Answer

Answer: (d) All the above

Question 36.
Which one is the item of Capital Account?
(a) Government Transaction
(b) Priva Transactions
(c) Foreign Direct Investment
(d) All the above

Answer

Answer: (d) All the above

Question 37.
The component(s) of Balance of Payment is/are:
(a) Current Account
(b) Capital Account
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (c) Both (a) and (b)

Question 38.
Which items are included in the balance of trade?
(a) Invisible Item
(b) Capital Transfer
(c) Visible Item
(d) All of these

Answer

Answer: (c) Visible Item

Question 39.
Balance of Trade means:
(a) Capital Transaction
(b) Import and export of goods
(c) Total debit and credit
(d) All the above

Answer

Answer: (b) Import and export of goods

Question 40.
The reason for the imbalance in the balance of payment is:
(a) Natural Reasons
(b) Economic Reasons
(c) Political Reasons
(d) All of these

Answer

Answer: (d) All of these

Question 41.
Structure of balance of payment includes which account:
(a) Current account
(b) Capital account
(c) Both (a) and (b)
(d) None of these.

Answer

Answer: (c) Both (a) and (b)

Question 42.
Balance of trade means:
(a) Capital transactions
(b)Import and export of goods,
(c) Total credit and debit
(d) All of the above

Answer

Answer: (b)Import and export of goods,

Question 43.
Measures to improve the adverse balance of payment includes:
(a) Currency devaluation
(b) Import substitution
(c) Exchange control
(d) All of the above

Answer

Answer: (d) All of the above.

Question 44.
Foreign Exchange Rate is determined by:
(a) Demand for foreign currency
(b) Supply of foreign currency
(c) Demand and supply in the foreign exchange market
(d) None of these

Answer

Answer: (c) Demand and supply in the foreign exchange market

Question 45.
Types of Foreign Exchange Market are:
(a) Spot market
(b) Forward market
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (c) Both (a) and (b)

Types of Foreign Exchange Market are:

Fill in the blanks:

Question 1.
________ refers to the rate at which one currency is exchanged for the other.

Answer

Answer: Foreign exchange rate

Question 2.
_______ rate of exchange refers to the rate of exchange as determined by the government.

Answer

Answer: Fixed

Question 3.
_______ market deals with current sales and purchases of foreign exchange.

Answer

Answer: Foreign Exchange

Question 4.
_______ market deals with such sale and purchase of foreign exchange, which are contracted today but are implemented sometimes in the future.

Answer

Answer: Forward

Question 5.
Balance of ________ is a summary statement of all economic transactions between a country and the rest of the world.

Answer

Answer: Payment

Question 6.
The balance of _______ is the difference between visible exports and visible imports.

Answer

Answer: Trade

Question 7.
Balance of Payment is always _________

Answer

Answer: Positive

Question 8.
Balance of Payment is a ______ concept as compared to the balance of trade.

Answer

Answer: broader

Question 9.
If exports exceed imports, then BoP is _________

Answer

Answer: favourable

Question 10.
Balance of trade includes only ________ items.

Answer

Answer: visible

Question 11.
Bretton woods system is also known as ________ border system.

Answer

Answer: Adaptable

Question 12.
There is ________ relation between foreign exchange rate and the supply of foreign exchange.

Answer

Answer: Direct

Question 13.
By devaluation, the value of currency ________

Answer

Answer: Reduces

Question 14.
________ items are included in the balance of trade.

Answer

Answer: Visible

Question 15.
Balance of payment always remains ________

Answer

Answer: Balanced

Question 16.
The value of the currency of one country with that of the currency of another country is called ________

Answer

Answer: Exchange rate

State true or false:

Question 1.
Balance of Payments includes only visible items.

Answer

Answer: False

Question 2.
Balance of trade is a part of the Balance of Payments.

Answer

Answer: True

Question 3.
The balance of trade is always positive.

Answer

Answer: False

Question 4.
The balance of Payments may be positive or negative.

Answer

Answer: False

Question 5.
The current account records visible items, invisible items, and unilateral transfers.

Answer

Answer: True

Question 6.
Capital account records are such transactions, which cause a change in the asset and liability status of the residents of a country or of its government.

Answer

Answer: True

Question 7.
Exports of tea is an example of visible items.

Answer

Answer: True

Question 8.
Banking and insurance are examples of visible items.

Answer

Answer: False

Question 9.
Forward market deals with current sales and purchases of foreign exchange.

Answer

Answer: False

Question 10.
Demand for foreign exchange also depends upon payments of international loans.

Answer

Answer: True

Question 11.
Balance of trade includes both visible and invisible items.

Answer

Answer: False

Question 12.
Balance of trade is a part of the Balance of payments.

Answer

Answer: True

Question 13.
Devaluation is declared by the government.

Answer

Answer: True

Question 14.
The balance of payment is always balanced.

Answer

Answer: True

Question 15.
For export promotion, the help of devaluation is taken.

Answer

Answer: True

Question 16.
The increasing population in developing countries has a direct impact on economic growth.

Answer

Answer: False

Question 17.
Export promotion is one of the ways of correcting the Balance of payments.

Answer

Answer: False

Match the following:

Question 1.

‘A’ ‘B’
1. Balance of payments (a) Always favourable
2. Balance of Trade includes (b) Both visible and invisible items
3. India’s Balance of payments (c) Includes only visible items
4. Determination of flexible exchange rate (d) Foreign banks issue letter of credit in large demand over banks of the country
5. In favour of foreign exchange rate (e) Forces of demand and supply in foreign exchange markets.
Answer

Answer:

‘A’ ‘B’
1. Balance of payments (b) Both visible and invisible items
2. Balance of Trade includes (c) Includes only visible items
3. India’s Balance of payments (a) Always favourable
4. Determination of flexible exchange rate (e) Forces of demand and supply in foreign exchange markets.
5. In favour of foreign exchange rate (d) Foreign banks issue letter of credit in large demand over banks of the country

Question 2.

Column-I Column-II
1. Spot market (A) Risk management
2. Forward market (B) Accommodating items
3. Hedging (C) Deals with current transactions
4. Above the line items (D) Autonomous items
5. Below the line items (E) Deals with future transactions
Answer
Column-I Column-II
1. Spot market (C) Deals with current transactions
2. Forward market (E) Deals with future transactions
3. Hedging (A) Risk management
4. Above the line items (D) Autonomous items
5. Below the line items (B) Accommodating items
 

Answer:

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Determination of Income and Employment Class 12 MCQ Online Test With Answers Questions

Check the below NCERT MCQ Questions for Class 12 Economics Chapter 4 Determination of Income and Employment with Answers Pdf free download. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest exam pattern. We have provided Determination of Income and Employment Class 12 Economics MCQs Questions with Answers to help students understand the concept very well.

Class 12 Economics Chapter 4 Determination of Income and Employment MCQ With Answers

Economics Class 12 Chapter 4 MCQs On Determination of Income and Employment

Employment Theory Is Related To MCQ Question 1.
What is the shape of the Keynesian Aggregate Supply before the level of full employment is attained?
(A) Perfectly inelastic
(B) Perfectly elastic
(C) Unitary elastic
(D) More elastic

Answer

Answer: (B) Perfectly elastic

MCQ Of Aggregate Demand And Supply Class 12 Question 2.
According to classical economists, real wage rate is ______ to the Marginal Productivity of Labour.
(A) Equal
(B) More
(C) Less
(D) None of these

Answer

Answer: (A) Equal

Determination Of Income And Employment Class 12 MCQ Question 3.
What is the cause of Keynesian perfectly elastic Aggregate Supply curve?
(A) Wage price rigidity
(B) Constant Marginal Product of Labour
(C) Both of these
(D) None of these

Answer

Answer: (C) Both of these

Determination Of Income And Employment MCQ Question 4.
According to classical economists, there always exists ______ equilibrium in the economy.
(A) Full employment
(B) Underemployment
(C) Over full employment
(D) None of these

Answer

Answer: (A) Full employment

Question 5.
What will be APC when APS = 0?
(A) One
(B) Zero
(C) Two
(D) Infinite

Answer

Answer: (A) One

Question 6.
If the income is ₹ 400 crores and consumption is ₹ 250 crores, what will be the APC?
(A) 0.67
(B) 0.63
(C) 0.60
(D) 0.58

Answer

Answer: (B) 0.63

Question 7.
What is a fiscal measure of correcting deficient demand?
(A) Increase in public expenditure and decrease in taxes
(B) Decrease in public debt
(C) Deficit financing
(D) All of these

Answer

Answer: (D) All of these

Question 8.
Which is the measure of correcting excess demand?
(A) Deficit financing
(B) Reduction in taxes
(C) Increase in public expenditure
(D) Increase in public debt

Answer

Answer: (D) Increase in public debt

Question 9.
Suppose in a hypothetical economy, the income rises from ₹ 5,000 crores to ₹ 6,000 crores. As a result, the consumption expenditure rises from ₹ 4,000 crores to ₹ 4,600 crores. Marginal propensity to consume in such a case would be ______
(A) 0.8
(B) 0.4
(C) 0.2
(D) 0.6

Answer

Answer: (D) 0.6

Question 10.
On the basis of government law, the compulsory payment made by the public is known as _________
(A) Expenditure
(B) Investment
(C) Tax
(D) Subsidy

Answer

Answer: (C) Tax

Question 11.
Which among is the direct tax?
(A) Income tax
(B) Gift and Corporation tax
(C) Wealth tax
(D) All of these

Answer

Answer: (D) All of these

Which among is the direct tax?

Question 12.
The value of multiplier is:
(A) \(\frac{1}{MPC}\)
(B) \(\frac{1}{MPS}\)
(C) \(\frac{1}{1-MPS}\)
(D) \(\frac{1}{MPC-1}\)

Answer

Answer: (B) \(\frac{1}{MPS}\)

Question 13.
If MPC = 1, the value of the multiplier is:
(A) 0
(B) 1
(C) Between 0 and 1
(D) Infinity

Answer

Answer: (D) Infinity

Question 14.
Aggregate demand can be increased by:
(A) increasing bank rate
(B) selling govt, securities by RBI
(C) increasing cash reserve ratio
(D) none of these

Answer

Answer: (D) None of these

Question 15.
If the marginal propensity to consume is greater than the marginal propensity to save, the value of the multiplier will be
(A) greater than 2
(B) less than 2
(C) equal to 2
(D) equal to 5

Answer

Answer: (A) greater than 2

Question 16.
Supply creates its own Demand. Who gave this law?
(a) J.B.Say
(b) J.S.Mill
(c) Keynes
(d) Ricardo

Answer

Answer: (a) J.B.Say

Question 17.
Who is the author of the book ‘General Theory of Employment, Interest, and Money’?
(a) A.C. Pigou
(b) Malthus
(c) J.M. Keynes
(d) Marshall

Answer

Answer: (c) J.M. Keynes

Question 18.
Which of the following is true for the Classical Theory of Employment?
(a) State of full employment in the economy
(b) No possibility of over-or under-production in the economy
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (c) Both (a) and (b)

Question 19.
On which factor Keynesian Theory of Employment depends?
(a) Effective Demand
(b) Supply
(c) Production Efficiency
(d) None of the above

Answer

Answer: (a) Effective Demand

Question 20.
Which is the determining factor for investment?
(a) Marginal Efficiency of Capital
(b) Interest Rate
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (c) Both (a) and (b)

Question 21.
According to Keynes, investment implies:
(a) Financial Investment
(b) Real Investment
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (b) Real Investment

Question 22.
With the increase in investment, MEC:
(a) Rises
(b) Falls
(c) Remains Constant
(d) None of these

Answer

Answer: (b) Falls

Question 23.
Which of the following is a Read Investment?
(a) Purchasing of a Share
(b) Purchasing of Old Factory
(c) Construction of Buildings
(d) Opening Deposit Account in the Bank

Answer

Answer: (c) Construction of Buildings

Question 24.
APC + APS = ?
(a) ?
(b) 2
(c) 1
(d) 0

Answer

Answer: (b) 2

Question 25.
MPC = MPS = ?
(a) ?
(b) 2
(c) 1
(d) 0

Answer

Answer: (c) 1

Question 26.
Which or is true?
(a) MPC + MPS = 0
(b) MPC + MPS < 1
(c) MPC + MPS = 1
(d) MPC + MPS > 1

Answer

Answer: (c) MPC + MPS = 1

Question 27.
The main component of aggregate demand is:
(a) Individual consumption
(b) Public consumption
(c) Investment
(d) All the above

Answer

Answer: (d) All the above

Question 28.
Who is the writer of the book, “Trained Economic Politique”?
(a) Pigour
(b) J.B. Say
(c) Keynes
(d) Ricardo

Answer

Answer: (a) Pigour

Question 29.
IF MPC = 0.5, then Multiplier (k) will be:
(a) 1/4
(b) = 0
(c) 1
(d) 2

Answer

Answer: (d) 2

Question 30.
On which concept does classical viewpoint depend?
(a) Say’s Law of Market
(b) perfect Flexibility of Wage Rate
(c) Perfect Flexibility of Interest Rate
(d) All of these

Answer

Answer: (d) All of these

Question 31.
“Wage cut maintains full employment in the economy.” Who put forward this view?
(a) Pigou
(b) Keynes
(c) Marshall
(d) None of the above

Answer

Answer: (a) Pigou

Question 32.
Which one of the following is the determining factor of Equilibrium Income is the Keynesian Viewpoint?
(a) Aggregate Demand
(b) Aggregate Supply
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (c) Both (a) and (b)

Question 33.
In Keynesian viewpoint, the equilibrium level of income and employment in the economy will be established where:
(a) AD > AS
(b) AS > AD
(c) AD = AS
(d) None of these

Answer

Answer: (c) AD = AS

Question 34.
According to the saving-investment viewpoint, income employment equilibrium will be determined at a point where:
(a) S > I
(b) I > S
(c) S = I
(d) None of these

Answer

Answer: (c) S = I

Question 35.
An increase in aggregate demand of equilibrium level of income and employment causes an increase in:
(a) Employment
(b) Production
(c) Income
(d) All of these

Answer

Answer: (d) All of these

Question 36.
Which one is correct?
(a) Y = C + I
(b) Y = 0 = N
(c) C + S = C + I
(d) All of these

Answer

Answer: (d) All of these

Question 37.
Keynes theory is associated with :
(a) Effective demand
(b) Propensity to consume
(c) Propensity to save
(d) All of these

Answer

Answer: (d) All of these

Question 38.
Keynesian multiplier establishes a relationship between:
(a) Investment and Income
(b) Income and Consumption
(c) Saving and Investment
(d) None of the above

Answer

Answer: (a) Investment and Income

Question 39.
Which one is correct?
(a) K = \(\frac{1}{MPC}\)
(b) K = \(\frac{1}{MPS}\)
(c) K = \(\frac{1}{1-MPS}\)
(d) K = \(\frac{1}{1+MPS}\)

Answer

Answer: (b) K = \(\frac{1}{MPS}\)

Question 40.
Multiplier can be expressed as:
(a) K = \(\frac{\Delta \mathrm{S}}{\Delta \mathrm{I}}\)
(b) K = \(\frac{\Delta \mathrm{Y}}{\Delta \mathrm{I}}\)
(c) K = I – S
(d) None of these

Answer

Answer: (b) K = \(\frac{\Delta \mathrm{Y}}{\Delta \mathrm{I}}\)

Question 41.
Keynes derived Investment Multiplier from Kahn’s :
(a) Income Multiplier
(b) Consumption Multiplier
(c) Employment Multiplier
(d) None of the above

Answer

Answer: (c) Employment Multiplier

Question 42.
The value of Keynesian Investment Multiplier depends on:
(a) Income Level
(b) Marginal Productivity of Capital
(c) Marginal Propensity to Consume
(d) Investment Level

Answer

Answer: (c) Marginal Propensity to Consume

Question 43.
Which factor affects Keynesian Multiplier?
(a) Marginal Propensity to Save
(b) Marginal Propensity to Consume
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (c) Both (a) and (b)

Question 44.
Which of the following is correct?
(a) MPC and multiplier have a direct relationship
(b) MPS and multiplier have an inverse relationship
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (c) Both (a) and (b)

Question 45.
The value of MPC is:
(a) 1
(b) 0
(c) Greater than 0 but less than 1
(d) ?

Answer

Answer: (c) Greater than 0 but less than 1

Question 46.
If MPC = 0.5, then multiplier (K) will be:
(a) 1/2
(b) 1
(c) 2
(d) 0

Answer

Answer: (c) 2

Question 47.
If MPC = 0.5 and initial investment is 100 Rs crores, the income generation in the economy will be :
(a) 5 crores Rs
(b) 100 crores Rs
(c) 200 crores Rs
(d) 500 crores Rs

Answer

Answer: (c) 200 crores Rs

Question 48.
‘The theory of employment multiplier was propounded by:
(a) Keynes
(b) Kahn
(c) Hansen
(d) Marshall

Answer

Answer: (b) Kahn

Question 49.
If income equilibrium level in the economy is determined at the level before full employment, it is known as the state of:
(a) Deficit Demand
(b) Surplus Demand
(c) Partial Demand
(d) None of these

Answer

Answer: (a) Deficit Demand

Question 50.
In Keynesian economics, the state of Deficit Demand is called as:
(a) Full Employment Equilibrium
(b) Under Full Employment Equilibrium
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (b) Under Full Employment Equilibrium

Question 51.
What are the characteristics of Deficit Demand?
(a) Aggregate Demand falls short of Aggregate Demand required at full employment
(b) Aggregate Demand remains short of Aggregate Supply required of full employment level
(c) Both (a) and (b)
(d) None of above

Answer

Answer: (c) Both (a) and (b)

Question 52.
Deflationary Gap shows the measurement of:
(a) Deficit Demand
(b) Surplus Demand
(c) Full Employment
(d) None of these

Answer

Answer: (a) Deficit Demand

Question 53.
Which one is the reason for appearing Deficit Demand condition?
(a) Fall in the money supply in the country
(b) Fall in investment demand as a result of rising in bank rate
(c) Fall in disposable income and consumer demand due to increase in taxes
(d) All the above

Answer

Answer: (d) All the above

Question 54.
Which of the following is true?
(a) Employment level declines due to decrease in demand
(b) Price level falls due to deficient demand in the country
(c) Production level falls deficient demand
(d) All the above

Answer

Answer: (d) All the above

Question 55.
The ‘difference between the Aggregate Demand at above full employment and Aggregate Demand at full employment is known as:
(a) Inflationary Gap
(b) Deflationary Gap
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (a) Inflationary Gap

Question 56.
Which of the following is a reason for surplus demand?
(a) Increase in Public Expenditure
(b) Increase in Money Supply
(c) Fall in Taxes
(d) All the above

Answer

Answer: (d) All the above

Question 57.
In the situation of the deflationary gap:
(a) Demand increases rapidly
(b) Supply increase rapidly
(c) Both demand and supply are equal
(d) All of these

Answer

Answer: (d) All of these

Question 58.
Which of the following causes the trade cycle?
(a) Deflationary Conditions
(b) Inflationary Conditions
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (c) Both (a) and (b)

Question 59.
Which one is the corrective measure for Deficient Demand?
(a) Fiscal Measures
(b) Monetary Measures
(c) Both (a) & (b)
(d) None of the above

Answer

Answer: (c) Both (a) & (b)

Question 60.
Which measure is included in Fiscal Measures?
(a) Public Expenditure
(b) Taxation
(c) Public Debt
(d) All of these

Answer

Answer: (d) All of these

Question 61.
Which fiscal measure should be adopted for correcting Deficient Demand?
(a) Government should spend more on public works
(b) Taxation should be reduced
(c) Pubic debt should be reduced
(d) All the above

Answer

Answer: (d) All the above

Question 62.
With which component of Monetary Policy, Central Bank tries to attain economic stability in the country?
(a) Supply of Money
(b) Interest Rate
(c) Availability of Money
(d) All of these

Answer

Answer: (d) All of these

Question 63.
Which method Central Bank adopts for controlling quantitative credit?
(a) Bank Rate
(b) Open Market Operations
(c) Change in Cash Reserve Ratio
(d) All the above

Answer

Answer: (d) All the above

Question 64.
Which is a qualitative method of controlling credit?
(a) Change in Margin Requirements of Loanee
(b) Credit Rationing
(c) Direct Action
(d) All of these

Answer

Answer: (d) All of these

Question 65.
Which monetary measure may be adopted to correct Deficient Demand?
(a) Reduction in Bank Rate
(b) Buying Securities in Open Markey
(c) Reducing Cash Reserve Ratio
(d) All the above

Answer

Answer: (d) All the above

Question 66.
Which fiscal measure is to be adopted in correcting the Inflationary Gap?
(a) Reduction in Public Expenditure
(b) Increase in taxes
(c) Increase in Public debt
(d) All of these

Answer

Answer: (d) All of these

Question 67.
Which monetary measure is to be adopted in correcting Inflationary
(a) Increase in Bank Rate
(b) Selling of Securities in Open Market
(c) Increase in Cash Reserve Ratio
(d) All the above

Answer

Answer: (d) All the above

Question 68.
Income and employment are determined by:
(a) Total demand
(b) Total supply
(c) Total demand and total supply both
(d) By market demand

Answer

Answer: (c) Total demand and total supply both

Question 69.
The relation between consumption and savings are:
(a) Inverse
(b) Direct
(c) Inverse and direct both
(d) Neither inverse nor direct.

Answer

Answer: (a) Inverse

The relation between consumption and savings are:

Question 70.
When an economy they’re to save all its extra income then investment calculation will be:
(a) 1
(b) Uncertain
(c) 0
(d) Infinite

Answer

Answer: (a) 1

Question 71.
“Supply creates its own demand”. This statement was given by the economist:
(a) Keynes
(b) Pigou
(c) J. B.Say
(d) Adam Smith

Answer

Answer: (c) J. B.Say

Question 72.
The classical theory is based on the assumption of:
(a) Say’s the law of market
(b) Flexibility in wage rates
(c) Flexibility in interest rate
(d) All of the above

Answer

Answer: (d) All of the above.

Fill in the blanks:

Question 1.
The multiplier is the ratio between the change in income and change in _________

Answer

Answer: investment

Question 2.
There is a/an _______ relation between multiplier and MPC.

Answer

Answer: direct

Question 3.
Deficient demand refers to the situation when Aggregate Demand _______ Aggregate Supply.

Answer

Answer: short

Question 4.
Income tax is a _______ tax.

Answer

Answer: direct

Question 5.
The price will be _______ an the inflationary gap.

Answer

Answer: increased

Question 6.
In a situation of inflationary gap, the economy faces a situation of _____ output.

Answer

Answer: higher

Question 7.
The deflationary gap is a measure of _______ demand.

Answer

Answer: excess

Question 8.
Excess demand refers to the situation when AD ______ AS.

Answer

Answer: >

Question 9.
______ policy is related to revenue and expenditure of the government.

Answer

Answer: fiscal

Question 10.
Bank rate is a ________ instrument of monetary policy.

Answer

Answer: quantitative

Question 11.
Tax, public borrowings are the main components of ________ policy.

Answer

Answer: fiscal

Question 12.
Bank rate and open market operation are the main components of _______ policy.

Answer

Answer: monetary

Question 13.
Fiscal policy has a ______ bearing on all the sectors of the economy.

Answer

Answer: direct

Question 14.
Sale tax is an example of ________ tax.

Answer

Answer: Indirect

Question 15.
The _______ Propensity to Consume is the proportion of the income, which is spent on consumption.

Answer

Answer: Average

Question 16.
MPC of the lower-income group is _______ than the higher income group.

Answer

Answer: higher

Question 17.
MPC is always _________

Answer

Answer: positive

Question 18.
MPC lies between ______ and ________

Answer

Answer: zero, one

Question 19.
________ refers to the highest rate of return over cost expected from a marginal or additional unit of a capital asset.

Answer

Answer: Marginal efficiency of capital

Question 20.
Deflationary gap is the measurement of _________ demand.

Answer

Answer: Deficit

Question 21.
Deficit demand indicates _________ gap.

Answer

Answer: Deflationary gap

Question 22.
In case of excess demand bank rate _________

Answer

Answer: Increase

Question 23.
Multiplier can also _________ in opposite direction.

Answer

Answer: Work

Question 24.
The point at which aggregate demand and aggregate supply are equal is known as __________

Answer

Answer: Effective demand

Question 25.
Unemployment is the result of ________

Answer

Answer: Deficit

Question 26.
Propensity to consume shows relation between _________ and distributed income.

Answer

Answer: Consumption

State true or false:

Question 1.
Consumption is the complement of saving.

Answer

Answer: True

Question 2.
Full employment means the absence of involuntary unemployment.

Answer

Answer: True

Question 3.
MPC can be negative.

Answer

Answer: False

Question 4.
MPC of the rich class is higher.

Answer

Answer: False

Question 5.
MPC can be greater than one under abnormal conditions.

Answer

Answer: True

Question 6.
According to Keynes, “Unemployment is the cause of AD < AS.”

Answer

Answer: True

Question 7.
There is an indirect relationship between multiplier and MPC.

Answer

Answer: False

Question 8.
With the increase in investment, the multiplier increases income many times more. It is called backward action of the multiplier.

Answer

Answer: False

Question 9.
The value of K is in between 1 and ∝.

Answer

Answer: True

Question 10.
When MPC is zero multipliers is 1.

Answer

Answer: True

Question 11.
Consumption by one person becomes the income of the other.

Answer

Answer: True

Question 12.
The deflationary gap is the shortfall in AD from the level required to maintain full employment equilibrium in the economy.

Answer

Answer: True

Question 13.
Corporation tax is an indirect tax.

Answer

Answer: False

Question 14.
Monetary policy is related to the revenue and expenditure policy of the government.

Answer

Answer: False

Question 15.
When there is excess demand, the rate of taxation is to be reduced.

Answer

Answer: False

Question 16.
When there is deficient demand, public expenditure is to be generally expanded.

Answer

Answer: True

Question 17.
Full employment does not mean zero unemployment.

Answer

Answer: True

Question 18.
An increase in the interest rate in the future will reduce the savings.

Answer

Answer: False

Question 19.
Consumption expenditure does not increase in the same proportion as income increases.

Answer

Answer: True

Question 20.
Theories of employment were propounded by Marshall.

Answer

Answer: False

Question 21.
Unemployment is the result of deficit demand.

Answer

Answer: False

Question 22.
Keynes’s theory also applies to underdeveloped countries.

Answer

Answer: False

Question 23.
Keynes’s theory is based on the concept of full employment.

Answer

Answer: True

Match the following:

Question 1.

‘A’ ‘B’
1. Meaning of market demand (a) Directly related to each other
2. Income and Savings both (b) J. B. Say
3. Independent jurisdiction (c) Income is inelastic
4. Induced investment (d) By the demand of one good
5. Supply creates its own demand (e) Is ruled by
6. Effective demand = Total demand and Total supply (f) Income is elastic.
Answer

Answer:

‘A’ ‘B’
1. Meaning of market demand (d) By the demand of one good
2. Income and Savings both (a) Directly related to each other
3. Independent jurisdiction (c) Income is inelastic
4. Induced investment (f) Income is elastic.
5. Supply creates its own demand (b) J. B. Say
6. Effective demand = Total demand and Total supply (e) Is ruled by

Question 2.

Column-I Column-II
1. Components of Aggregate Demand (A) C + S
2. Components of Aggregate Supply (B) Rate of interest and MEC
3. Determinants of investment (C) AD = AS
4. Equilibrium level of income (D) C + I + G + ( X – M)
5. Investment multiplier (E) Taxes, deficit financing
6. MPC = 0.6, MPS = ? (F) 0.4
7. APC = 0.9, APS = ? (G) 0.1
8. Measures of fiscal policy (H) k = \(\frac{\Delta Y}{\Delta I}\)
9. Measures of monetary policy (I) Bank rate, CRR
10. Quantitative Instrument (J) Rationing
11. Qualitative Instrument (K) Open market operation
Answer

Answer:

Column-I Column-II
1. Components of Aggregate Demand (D) C + I + G + ( X – M)
2. Components of Aggregate Supply (A) C + S
3. Determinants of investment (B) Rate of interest and MEC
4. Equilibrium level of income (C) AD = AS
5. Investment multiplier (H) k = \(\frac{\Delta Y}{\Delta I}\)
6. MPC = 0.6, MPS = ? (F) 0.4
7. APC = 0.9, APS = ? (G) 0.1
8. Measures of fiscal policy (E) Taxes, deficit financing
9. Measures of monetary policy (I) Bank rate, CRR
10. Quantitative Instrument (K) Open market operation
11. Qualitative Instrument (J) Rationing

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MCQ Questions for Class 12 Economics Chapter 2 National Income Accounting with Answers

National Income Accounting Class 12 MCQ Online Test With Answers Questions

Check the below NCERT MCQ Questions for Class 12 Economics Chapter 2 National Income Accounting with Answers Pdf free download. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest exam pattern. We have provided National Income Accounting Class 12 Economics MCQs Questions with Answers to help students understand the concept very well.

Class 12 Economics Chapter 2 National Income Accounting MCQ With Answers

Economics Class 12 Chapter 2 MCQs On National Income Accounting

National Income MCQ Chapter 2 Class 12 Question 1.
GNP at MP = ______
(A) GDPMP – Depreciation
(B) GDPMP + Depreciation
(C) GDPMP ÷ Depreciation
(D) GDPMP + Net factor income from abroad

Answer

Answer: (A) GDPMP – Depreciation

MCQ On National Income Chapter 2 Class 12 Question 2.
NDPMP = ________
(A) GDPMP – Depreciation
(B) GDPFC + Net factor income from abroad
(C) NNPFC + Net indirect taxes
(D) All of these

Answer

Answer: (A) GDPMP – Depreciation

MCQs On National Income Chapter 2 Class 12 Question 3.
NNPMP = ________
(A) GNPMP – Depreciation
(B) NDPMP + Net factor income from abroad
(C) NNPFC + Net indirect taxes
(D) All of these

Answer

Answer: (D) All of these

MCQ On National Income Class 12 Chapter 2 Question 4.
GDPFC =
(A) GDPMP – Net indirect taxes
(B) GDPMP + Net indirect taxes
(C) GDPMP + Subsidies
(D) GDPMP – Indirect taxes

Answer

Answer: (A) GDPMP – Net indirect taxes

MCQ On National Income Pdf Chapter 2 Class 12 Question 5.
NDPFC =
(A) GDPFC – Indirect taxes
(B) GDPFC – Depreciation
(C) GDPFC + Economic subsidy
(D) All of these

Answer

Answer: (B) GDPFC – Depreciation

National Income MCQs Chapter 2 Class 12 Question 6.
NNPFC =
(A) GNPFC – Depreciation
(B) NNPMP + Economic subsidy – Indirect taxes
(C) NDPMP + Net factor income from abroad
(D) All of these

Answer

Answer: (D) All of these

Macroeconomics Class 12 Chapter 2 MCQ  Question 7.
Which of the following is the method of measuring National Income?
(A) Income method
(B) Product method
(C) Expenditure method
(D) All of these

Answer

Answer: (D) All of these

Which of the following is the method of measuring National Income?

National Income Includes MCQ Chapter 2 Class 12 Question 8.
Why are the intermediate goods not included in the National Income while measuring National Income?
(A) To avoid double accounting
(B) It decreases income
(C) Intermediate goods are not good
(D) All of these

Answer

Answer: (A) To avoid double accounting

Question 9.
Who had made the first attempt at National Income Accounting?
(A) Prof. D.R.Gadgill
(B) Simon Kuznets
(C) J.M.Keynes
(D) Gregory King

Answer

Answer: (D) Gregory King

Question 10.
Calculation of National Income at Market Prices is known as _________
(A) Money income
(B) Real income
(C) Non-monetary income
(D) None of these

Answer

Answer: (A) Money income

Question 11.
Accounting of National Income at constant prices is known as ________
(A) Money income
(B) Real income
(C) Current income
(D) Domestic income

Answer

Answer: (B) Real income

Question 12.
Which of the following items are excluded from GNP measurement?
(A) Purely financial transactions
(B) Transfer of used goods and non-market goods and services
(C) Illegal activities and the value of leisure
(D) All of these

Answer

Answer: (D) All of these

Question 13.
The subject of the Study of Macro Economics is:
(a) The Principle of National Income
(b) The Principle of Consumer
(c) The Principle of Producer
(d) None of these

Answer

Answer: (a) The Principle of National Income

Question 14.
Macro Economics Studies:
(a) Employment opportunities in the economy
(b) Theory of supply of Commodities
(c) Elasticity of demand in Scooter
(d) Price of wheat in the market

Answer

Answer: (a) Employment opportunities in the economy

Question 15.
General Price Level is studied in:
(a) Micro Economics
(b) Macro Economics
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (b) Macro Economics

Question 16.
Employment Theory is related to :
(a) Static Economics
(b) Micro Economics
(c) Macro Economics
(d) None of these

Answer

Answer: (c) Macro Economics

Question 17.
Increase in Stock of Capital is known as:
(a) Capital Loss
(b) Capital Profit
(c) Capital Formation
(d) None of these

Answer

Answer: (c) Capital Formation

Question 18.
Which of the following is sPktock ?
(a) Wealth
(b) Saving
(c) Export
(d) Profit

Answer

Answer: (a) Wealth

Question 19.
Which one of the following is included in circular flow?
(a) Real Flow
(b) Money Flow
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (c) Both (a) and (b)

Question 20.
Which one of the following is included in ‘Stock’?
(a) Quantity of Money
(b) Wealth
(c) Quantity of wheat stored in a warehouse
(d) All the above

Answer

Answer: (d) All the above

Question 21.
Which one is included inflow ?
(a) Consumption
(b) Investment
(c) Income
(d) All of these

Answer

Answer: (b) Investment

Question 22.
Which of the following is included in real flow?
(a) Flow of Goods
(b) Flow of Services
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (c) Both (a) and (b)

Question 23.
Which services are provided by families to a firm?
(a) Land
(b) Labour
(c) Capital and Enterprises
(d) All the above

Answer

Answer: (d) All the above

Question 24.
Which one is included in the three-sector model?
(a) Family
(b) Firm
(c) Government
(d) All of these

Answer

Answer: (d) All of these

Question 25.
Which one is included in the four-sector model?
(a) Family, Firm, Industry
(b) Family, Firm, Government
(c) Family, Firm, Government, Foreign Sector
(d) None of the above

Answer

Answer: (c) Family, Firm, Government, Foreign Sector

Question 26.
Which is the equilibrium condition of circular flow in the four sector model?
(a) C + I
(b) C + I + G
(c) C + I + G + (X-M)
(d) None of these

Answer

Answer: (c) C + I + G + (X-M)

Question 27.
The primary sector includes:
(a) Agriculture
(b) Retail trading
(c) Small Industries
(d) All the these

Answer

Answer: (d) All the these

Question 28.
For a four sector or open economy the condition for equilibrium is:
(a) Savings + taxes + Imports = Investment + govt, expenditure + exports
(b) Total Leakages = Total Injections
(c) Aggregate output = Aggregate Expenditure
(d) All of these

Answer

Answer: (d) All of these

Question 29.
Which service is included in Tertiary Sector?
(a) Mining
(b) Construction
(c) Communication
(d) Animal Husbandry

Answer

Answer: (c) Communication

Question 30.
Which of the following is not flow?
(a) Capital
(b) Income
(c) Investment
(d) Depreciation

Answer

Answer: (a) Capital

Question 31.
The market price of all final goods of a country in a year is known as:
(a) GDPMP
(b) GDPFC
(c) NNPFC
(d) None of these

Answer

Answer: (a) GDPMP

Question 32.
Which one is true?
(a) GNP = GDP + Depreciation
(b) NNP = GNP + Depreciation
(c) NNP = GNP – Depreciation
(d) GNP = NNP – Depreciation

Answer

Answer: (c) NNP = GNP – Depreciation

Question 33.
GNPMp =?
(a) GDPMp – Depreciation
(b) GDPMp + Net Factor Income from Abroad
(c) GNPMp + Subsidy
(d) None of the above

Answer

Answer: (b) GDPMp + Net Factor Income from Abroad

Question 34.
NNPMP = ?
(a) GNPMp – Depreciation
(b) GNPMp + Depreciation
(c) GNPMp + Indirect Tax
(d) None of the above

Answer

Answer: (a) GNPMp – Depreciation

Question 35.
Depreciation expenses are included in:
(a) GNPMp
(b) NNPMp
(c) NNPFC
(d) None of these

Answer

Answer: (a) GNPMp

Question 36.
NDPFC = ?
(a) NDPMP – Indirect Tax
(b) GNPMP – Indirect Tax + Subsidy
(c) NDPMP – Subsidy
(d) NDPMF – Depreciation

Answer

Answer: (b) GNPMP – Indirect Tax + Subsidy

Question 37.
Net National Income at Factor Cost is called?
(a) National Income
(b) Gross Investment
(c) Domestic Income
(d) None of these

Answer

Answer: (a) National Income

Question 38.
Which one is included in National Income?
(a) Rent, Wage, Interest
(b) Rent, Wage, Salary
(c) Rent, Profit, Interest
(d) Rent, Wage, Salary, Interest, Profit

Answer

Answer: (d) Rent, Wage, Salary, Interest, Profit

Question 39.
What is the consumption of fixed capital called?
(a) Capital formation
(b) Depreciation
(c) Investment
(d) All of these

Answer

Answer: (b) Depreciation

Question 40.
Which of the following is correct?
(a) Disposable Income = Personal Income – Direct Taxes
(b) Disposable Income = Private Income – Direct Taxes
(c) Disposable Income = Personal Income – Indirect Taxes
(d) Disposable Income = Private Income – Indirect Taxes

Answer

Answer: (a) Disposable Income = Personal Income – Direct Taxes

Question 41.
If for a country net factor income from abroad is negative then:
(a) GDP < GNP
(b) GDP > GNP
(c) GDP ≥ GNP
(d) GDP = GNP

Answer

Answer: (b) GDP > GNP

Question 42.
The market value of all final goods and services produced in an economy over a year is called :
(a) Gross National Product
(b) National Income
(c) Gross Domestic Product
(d) Net National Product

Answer

Answer: (c) Gross Domestic Product

Question 43.
Which method is adopted in measuring National Income?
(a) Production Method
(b) Income Method
(c) Expenditure Method
(d) All of these

Answer

Answer: (d) All of these

Question 44.
Which sector is included in an economy?
(a) Primary
(b) Secondary
(c) Tertiary
(d) All of these

Answer

Answer: (d) All of these

Question 45.
Which of the following is not included in the calculation of Gross National Product?
(a) Purchase and Sale of Old commodities
(b) Intermediate Commodities
(c) (a) and (b) both
(d) None of the above

Answer

Answer: (c) (a) and (b) both

Question 46.
Which one of the following services are included in the Secondary Sector?
(a) Insurance
(b) Manufacturing
(c) Trade
(d) Banking

Answer

Answer: (b) Manufacturing

Question 47.
Which one is included in Primary Sector?
(a) Land
(b) Forest
(c) Mining
(d) All these

Answer

Answer: (d) All these

Question 48.
To include the value of goods or services more than one time while calculating National Income is called :
(a) Single Counting
(b) Double Counting
(c) Multiple Counting
(d) None of these

Answer

Answer: (b) Double Counting

Question 49.
Which one is a component of profit?
(a) Dividend
(b) Undistributed Profit
(c) Corporate Profit Tax
(d) All of these

Answer

Answer: (d) All of these

Question 50.
Which one is included in National Income?
(a) Transfer Earnings
(b) Sale proceeds of Shares and Bonds
(c) Black Money
(d) None of the Above

Answer

Answer: (d) None of the Above

Question 51.
Which one is included in the calculation of National Income?
(a) New Final Goods and Services
(b) Earned Income of Indian Companies in Abroad
(c) Expenses made by Foreign Tourists in the country
(d) All the above

Answer

Answer: (d) All the above

Question 52.
Which one is the limitation of Macro Economics?
(a) Collective Economic Paradox
(b) Ignores Individual Units
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (c) Both (a) and (b)

Which one is the limitation of Macro Economics?

Question 53.
Macro-economics is the study of:
(a) Principle or Theories of national income
(b) Consumer’s theory
(c) Production theory
(d) None of these.

Answer

Answer: (a) Principle or Theories of national income

Question 54.
Out of the following which is not a flow:
(a) Capital
(b) Income
(c) Investment
(d) Depreciation.

Answer

Answer: (a) Capital

Question 55.
From the following which method is used for measuring national income:
(a) Production method
(b) Income method
(c) Expenditure method
(d) All of the above.

Answer

Answer: (d) All of the above.

Question 56.
Which of the following is included in the primary sector:
(a) Land
(b) Forest
(c) Mines
(d) All of the above.

Answer

Answer: (d) All of the above

Question 57.
Total national income divided by total population is known as:
(a) Private income
(b) Personal income
(c) Personal spendable income
(d) Per capita income.

Answer

Answer: (d) Per capita income

Question 58.
Production enterprises are divided in:
(a) Two sectors
(b) Three sectors
(c) Four sectors
(d) Five sectors.

Answer

Answer: (b) Three sectors

Fill in the blanks:

Question 1.
________ income is the value of current income at base-year prices.

Answer

Answer: Real

Question 2.
__________ flow shows flow of goods and services across different sectors.

Answer

Answer: Real

Question 3.
_______ sector is also known as the service sector.

Answer

Answer: Tertiary

Question 4.
_________ is an economic variable that is measured over a specific period of time. It is a dynamic concept.

Answer

Answer: Flow

Question 5.
________ is the loss of value of fixed assets due to normal wear and tear.

Answer

Answer: Depreciation

Question 6.
Environmental pollution caused by industries is a _______ externality.

Answer

Answer: negative

Question 7.
_______ are the economic assistance given by the government for the general welfare.

Answer

Answer: Subsidies

Question 8.
Investment refers to addition to the ________ of an economy. For example purchase of machinery, construction of the metro.

Answer

Answer: capital stock

Question 9.
Nominal GDP is the value of GDP at _______ prices.

Answer

Answer: current

Question 10.
________ means estimating the value of goods and services more than once.

Answer

Answer: Double counting

Question 11.
Agriculture is included in the…………… sector.

Answer

Answer: Primary

Question 12.
Pigou has divided welfare into ………….. parts.

Answer

Answer: Two

Question 13.
Chinese product is included in …………… area of the economy.

Answer

Answer: Secondary

Question 14.
National income in India is calculated by………………

Answer

Answer: Central statistical organisation

Question 15.
The total value of all final goods and services produced within the domestic territory of a country during an accounting year is known as ……….

Answer

Answer: GDP

Question 16.
……….. is an index of economic development of the country.

Answer

Answer: National income.

State true or false:

Question 1.
As compared to developed countries, India’s per capita income is quite less.

Answer

Answer: True

Question 2.
Black money has given birth to a parallel economy in the country.

Answer

Answer: True

Question 3.
The major contribution to India’s national income is from the secondary sector.

Answer

Answer: False

Question 4.
Electricity, LPG, and water supply are included in the primary sector.

Answer

Answer: False

Question 5.
Income from gifts is included in the national income.

Answer

Answer: False

Question 6.
The sale of second-hand goods is not included in the national income.

Answer

Answer: True

Match the following:

Question 1.

‘A’ ‘B’
1. Fish culture (a) Tertiary sector
2. Highest contribution in national income (b) Year 1952
3. National income committee was established in (c) Mixed method
4. National income calculation is done by (d) Year 1949
5. Establishment of C.S.O. (e) Primary sector.
Answer

Answer:

‘A’ ‘B’
1. Fish culture (e) Primary sector.
2. Highest contribution in national income (a) Tertiary sector
3. National income committee was established in (d) Year 1949
4. National income calculation is done by (c) Mixed method
5. Establishment of C.S.O. (b) Year 1952

Question 2.

Column-I Column-II
1. Real flow (A) Imports, savings, etc.
2. Money flow (B) Exports, investments, etc.
3. Examples of injections (C) Balance in the bank account as of January 1st, 2019
4. Examples of leakages (D) Income per Month
5. Examples of stock (E) Income from a self-employed person
6. Examples of flow (F) GNP at constant prices
7. GDPMP (G) The flow of goods and sen/ices
8. Mixed-income (H) GDPFC + NIT – Subsidies
9. Change in the stock (I) Depreciation
10. Nominal GNP (J) The flow of money across different sectors
11. Real GNP (K) Closing stock – opening stock
12. Consumption1 of fixed capital (L) GNP at current prices
Answer

Answer:

Column-I Column-II
1. Real flow (G) The flow of goods and sen/ices
2. Money flow (J) The flow of money across different sectors
3. Examples of injections (B) Exports, investments, etc.
4. Examples of leakages (A) Imports, savings, etc.
5. Examples of stock (C) Balance in the bank account as of January 1st, 2019
6. Examples of flow (D) Income per Month
7. GDPMP (H) GDPFC + NIT – Subsidies
8. Mixed-income (E) Income from a self-employed person
9. Change in the stock (K) Closing stock – opening stock
10. Nominal GNP (L) GNP at current prices
11. Real GNP (F) GNP at constant prices
12. Consumption1 of fixed capital (I) Depreciation

We hope the given NCERT MCQ Questions for Class 12 Economics Chapter 2 National Income Accounting with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 12 Economics National Income Accounting MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

Class 12 Macroeconomics with Answers MCQ:

MCQ Questions for Class 12 Economics Chapter 5 Government Budget and the Economy with Answers

Government Budget and the Economy Class 12 MCQ Online Test With Answers Questions

Check the below NCERT MCQ Questions for Class 12 Economics Chapter 5 Government Budget and the Economy with Answers Pdf free download. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest exam pattern. We have provided Government Budget and the Economy Class 12 Economics MCQs Questions with Answers to help students understand the concept very well.

Class 12 Economics Chapter 5 Government Budget and the Economy MCQ With Answers

Economics Class 12 Chapter 5 MCQs On Government Budget and the Economy

Government Budget Class 12 MCQ Question 1.
An annual statement of the estimated receipts and expenditure of the government over the fiscal year is known as
(A) Budget
(B) Income estimates
(C) Account
(D) Expenditure

Answer

Answer: (A) Budget

Government Budget And The Economy Class 12 MCQ Question 2.
Which of the following is an example of direct tax?
(A) VAT
(B) Excise duty
(C) Entertainment tax
(D) Wealth tax

Answer

Answer: (D) Wealth tax

Which of the following is an example of direct tax?

Govt Budget Class 12 MCQ Question 3.
What is the period of a fiscal year?
(A) 1 April to 31 March
(B) 1 January to 31 December
(C) 1 March to 28 February
(D) None of these

Answer

Answer: (A) 1 April to 31 March

Government Budget MCQ Class 12 Question 4.
When government spends more than it collects by way of revenue, it incurs ______
(A) Budget surplus
(B) Budget deficit
(C) Capital expenditure
(D) Revenue expenditure

Answer

Answer: (B) Budget deficit

Government Budget And The Economy MCQ Question 5.
The fiscal deficit is the difference between the government’s total expenditure and its total receipts excluding ______
(A) Interest
(B) Taxes
(C) Spending
(D) Borrowings

Answer

Answer: (D) Borrowings

MCQ On Government Budget Class 12 Question 6.
Which of the following is the component of a budget?
(A) Fiscal budget
(B) Capital budget
(C) Both of these
(D) None of these

Answer

Answer: (C) Both of these

Government Budget MCQ Question 7.
What is the annual statement of the government’s fiscal revenue and fiscal expenditure known?
(A) Budget
(B) Fiscal Budget
(C) Capital Budget
(D) All of these

Answer

Answer: (B) Fiscal Budget

MCQ Of Government Budget Class 12 Question 8.
How many types of revenue receipts are there?
(A) 2
(B) 3
(C) 4
(D) 6

Answer

Answer: (A) 2

Government Budget Class 12 MCQs Question 9.
The amount collected by the government as taxes and duties is known as _______
(A) Capital receipts
(B) Tax revenue receipts
(C) Non-tax revenue receipts
(D) All of these

Answer

Answer: (B) Tax revenue receipts

Class 12 Government Budget MCQ Question 10.
The amount collected by the government in the form of interest, fees, and dividends is known as ________
(A) Tax-revenue receipts
(B) Capital receipts
(C) Non-tax revenue receipts
(D) None of these

Answer

Answer: (C) Non-tax revenue receipts

MCQ Of Government Budget Question 11.
Borrowing in the government budget is:
(A) Revenue deficit
(B) Fiscal deficit
(C) Primary deficit
(D) Deficit in taxes

Answer

Answer: (B) Fiscal deficit

MCQ Of Chapter Government Budget Class 12 Question 12.
The non-tax revenue in the following is:
(A) Export duty
(B) Import duty
(C) Dividends
(D) Excise

Answer

Answer: (C) Dividends

Government Budget And Economy Class 12 MCQ Question 13.
The primary deficit in a government budget will be zero, when _______
(A) Revenue deficit is zero
(B) Net interest payments are zero
(C) Fiscal deficit is zero
(D) Fiscal deficit is equal to interest payment

Answer

Answer: (D) Fiscal deficit is equal to interest payment

Class 12 Economics Government Budget MCQ Question 14.
Direct tax is called direct because it is collected directly from:
(A) The producers on goods produced
(B) The sellers on goods sold
(C) The buyers of goods
(D) The income earners

Answer

Answer: (D) The income earners

MCQ On Government Budget Class 12 Pdf Question 15.
Financial Year in India is:
(a) April I to March 31
(b) January 1 to December 31
(c) October 1 to September 30
(d) None of the above

Answer

Answer: (a) April I to March 31

MCQ Of Govt Budget Class 12 Question 16.
Which objectives government attempts to obtain by Budget
(a) To Promote Economic Development
(b) Balanced Regional Development
(c) Redistribution of Income and Wealth
(d) All the above

Answer

Answer: (d) All the above

Government Budget Class 12 MCQ Questions Question 17.
Which is a component of Budget?
(a) Budget Receipts
(b) Budget Expenditure
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (c) Both (a) and (b)

Question 18.
Which is a component of the Budget Receipt?
(a) Revenue Receipt
(b) Capital Receipt
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (c) Both (a) and (b)

Question 19.
Tax revenue of the Government includes :
(a) Income Tax
(b) Corporate Tax
(c) Excise Duty
(d) All of these

Answer

Answer: (d) All of these

Question 20.
Which is included in the Direct Tax?
(a) Income Tax
(b) Gift Tax
(c) Both (a) and (b)
(d) Excise Duty

Answer

Answer: (c) Both (a) and (b)

Question 21.
Which is included in Indirect Tax?
(a) Excise Duty
(b) Sales Tax
(c) Both (a) and (b)
(d) Wealth Tax

Answer

Answer: (c) Both (a) and (b)

Question 22.
The expenditures which do not create assets for the government is called :
(a) Revenue Expenditure
(b) Capital Expenditure
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (a) Revenue Expenditure

Question 23.
Direct tax is :
(a) Income Tax
(b) Gift Tax
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (c) Both (a) and (b)

Question 24.
In India, one rupee note is issued by:
(a) Reserve Bank of India
(b) Finance Ministry of Government of India
(c) State Bank of India
(d) None of these

Answer

Answer: (b) Finance Ministry of Government of India

Question 25.
Capital budget consist of:
(a) Revenue Receipts and Revenue Expenditure
(b) Capital Receipts and Capital Expenditure
(c) Direct and Indirect Tax
(d) None of these

Answer

Answer: (b) Capital Receipts and Capital Expenditure

Question 26.
Which of the following is an indirect tax?
(a) Excise Duty
(b) Sales Tax
(c) Custom Duty
(d) All of these

Answer

Answer: (d) All of these

Question 27.
Which type of expenditure is made in bridge construction?
(a) Capital Expenditure
(b) Revenue Expenditure
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (a) Capital Expenditure

Question 28.
Which of the following budget is suitable for developing economies?
(a) Deficit Budget
(b) Balanced Budget
(c) Surplus Budget
(d) None of these

Answer

Answer: (a) Deficit Budget

Question 29.
What is the duration of a Budget?
(a) Annual
(b) Two Years
(c) Five Years
(d) Ten Years

Answer

Answer: (a) Annual

Question 30.
Which of the following is included in fiscal policy?
(a) Public Expenditure
(b) Tax
(c) Public Debt
(d) All of these

Answer

Answer: (d) All of these

Question 31.
Which of the following is the capital expenditure of the government?
(a) Interest Payment
(b) Purchase of House
(c) Expenses on Machinery
(d) All of the above

Answer

Answer: (a) Interest Payment

Question 32.
The budget may include:
(a) Revenue Deficit
(b) Fiscal Deficit
(c) Primary Deficit
(d) All of these

Answer

Answer: (d) All of these

Question 33.
Which of the following statement is true?
(a) Fiscal deficit is the difference between total expenditure and total receipts
(b) Primary deficit is the difference between total receipt and interest payments
(c) Fiscal deficit is the sum of primary deficit and interest payment
(d) All of these

Answer

Answer: (c) Fiscal deficit is the sum of primary deficit and interest payment

Question 34.
Budget:
(a) is a description of income-expenditure of government
(b) is a document of the economic policy of the government
(c) is a description of non-programs of the government
(d) All of these

Answer

Answer: (d) All of these

Question 35.
In an unbalanced budget:
(a) Income is greater than expenditure
(b) Expenditure is higher relative to income
(c) Deficit is covered by loans or printing of notes
(d) Only (b) and (c)

Answer

Answer: (d) Only (b) and (c)

Question 36.
Which is included in indirect tax?
(a) Income tax
(b) Wealth tax
(c) Excise Duty
(d) Gift tax

Answer

Answer: (c) Excise Duty

Question 37.
Which one of the following is a pair of direct tax?
(a) Excise duty and Wealth Tax
(b) Service Tax and Income Tax
(c) Excise Duty and Service Tax
(d) Wealth Tax and Income Tax

Answer

Answer: (d) Wealth Tax and Income Tax

Question 38.
Which of the following is not a revenue receipt?
(a) Recovery of Loans
(b) Foreign Grants
(c) Profits of Public Enterprise
(d) Wealth Tax

Answer

Answer: (a) Recovery of Loans

Question 39.
Which of the following is a correct measure of the primary deficit?
(a) Fiscal deficit minus revenue deficit
(b) Revenue deficit minus interest payments
(c) Fiscal deficit minus interest payments
(d) Capital expenditure minus revenue expenditure

Answer

Answer: (c) Fiscal deficit minus interest payments

Question 40.
The duration of the Government budget is:
(a) 5 years
(b) 2 years
(c) 1 year
(d) 10 years

Answer

Answer: (c) 1 year

Question 41.
Budget is presented in the Parliament by:
(a) Prime Minister
(b) Home Minister
(c) Finance Minister
(d) Defence Minister

Answer

Answer: (c) Finance Minister

Question 42.
Budget speech in Lok Sabha is given by:
(a) President
(b) Prime Minister
(c) Finance Minister
(d) Home Minister

Answer

Answer: (c) Finance Minister

Question 43.
Professional tax is imposed by:
(a) Central Government
(b) State Government
(c) Municipal Corporation
(d) Gram Panchayat

Answer

Answer: (b) State Government

Question 44.
From the following which is included in the direct tax:
(a) Income Tax
(b) Gift Tax
(c) Both (a) and (b)
(d) Excise Tax

Answer

Answer: (c) Both (a) and (b)

From the following which is included in the direct tax:

Question 45.
Who issues 1 rupee note in India:
(a) Reserve Bank of India
(b) Finance Ministry of India
(c) State Bank of India
(d) None of these

Answer

Answer: (b) Finance Ministry of India

Fill in the blanks:

Question 1.
A deficit budget is that in which total expenditure is ________ total receipts.

Answer

Answer: greater than

Question 2.
Revenue deficit is that in which revenue receipts are ________ revenue expenditure.

Answer

Answer: less than

Question 3.
_______ tax is that in which the final burden of the tax fall on the person who pays it.

Answer

Answer: Direct

Question 4.
Tax is a legally compulsory payment imposed by the _______ on income and property of persons and companies.

Answer

Answer: Government

Question 5.
Recovery of loan is treated as capital receipt because it leads to __________

Answer

Answer: reduction of assets

Question 6.
Primary Deficit = Fiscal Deficit minus __________

Answer

Answer: Interest on Debt

Question 7.
________ are levied on goods and services.

Answer

Answer: Indirect taxes

Question 8.
_________ does not have any impact on the asset-liability status of the government.

Answer

Answer: Revenue budget

Question 9.
The government can influence the allocation of resources through the implementation of appropriate _________

Answer

Answer: fiscal policy

Question 10.
__________ is a document containing income and expenditure of the government.

Answer

Answer: Budget

Question 11.
Income tax is _________ tax.

Answer

Answer: Direct

Question 12.
_________ tax is levied on the value of the goods.

Answer

Answer: Advalorem

Question 13.
Service tax is levied by the ________

Answer

Answer: Central

Question 14.
_________ budget is considered good for the country.

Answer

Answer: Deficit

Question 15.
Finance bill contains _________ proposals.

Answer

Answer: Tax

Question 16.
Government budget is presented on the last day of _________

Answer

Answer: February

State true or false :

Question 1.
Public goods are collectively consumed.

Answer

Answer: True

Question 2.
There is a feasible way of excluding anyone from enjoying the benefits of public goods.

Answer

Answer: False

Question 3.
The three functions of allocation, redistribution, and stabilization are operated through the expenditure and receipts of the government.

Answer

Answer: True

Question 4.
The deficit decreases in a recession and increases in a boom, even without any change in fiscal policy.

Answer

Answer: False

Question 5.
Indirect taxes are not convenient to realise.

Answer

Answer: False

Question 6.
Payment of salaries to the government employees is a capital payment.

Answer

Answer: False

Question 7.
Expenditure made on the establishment of the metro rail line in Delhi is a capital expenditure.

Answer

Answer: True

Question 8.
Public borrowing is a capital receipt.

Answer

Answer: True

Question 9.
Recovery of loan is a revenue receipt.

Answer

Answer: False

Question 10.
Service tax is a direct tax.

Answer

Answer: False

Question 11.
Grants by the government are treated as revenue expenditure.

Answer

Answer: True

Question 12.
Excess of capital expenditure over capital receipt is called revenue deficit.

Answer

Answer: False

Question 13.
A deficit budget is not considered a good budget.

Answer

Answer: False

Question 14.
Electricity tax is levied by the State Government.

Answer

Answer: True

Question 15.
The budget speech is given by the Finance Minister.

Answer

Answer: True

Question 16.
Central excise duty is a direct tax.

Answer

Answer: False

Question 17.
The interest payment is a planned item.

Answer

Answer: False

Question 18.
During deflation surplus budget is made.

Answer

Answer: True

Question 19.
The rail budget is generally not included in the annual budget.

Answer

Answer: True

Match the following

Question 1.

‘A’ ‘B’
1. Income and expenditure of the government (a) 31 March
2. First of all finance bill is presented in the (b) Budget
3. Budget is presented on (c) Details about income and expenditure
4. Aim or Objective of the budget (d) Lok sabha
5. Main feature of the budget (e) Economic development.
Answer

Answer:

‘A’ ‘B’
1. Income and expenditure of the government (b) Budget
2. First of all finance bill is presented in the (d) Lok sabha
3. Budget is presented on (a) 31 March
4. Aim or Objective of the budget (e) Economic development.
5. Main feature of the budget (c) Details about income and expenditure

Question 2.

Column-I Column-II
1. Surplus budget (A) Revenue receipts > Revenue expenditure
2. Deficit budget (B) Fiscal deficit – interest payments
3. Revenue deficit (C) Govt. Expenditure < Govt. Receipts
4. Fiscal deficit (D) Income tax, corporate profit tax
5. Primary deficit (E) Expenditure on roads and health
6. Examples of direct tax (F) Govt. Expenditure > Govt. Receipts
7. Examples of indirect tax (G) Loans granted to state governments
8. Examples of development expenditure (H) Total expenditure > total receipts
9. Examples of non-development expenditure (I) Sale tax, excise duty
10. Examples of capital expenditure (J) Sales tax, Income tax
11. Sources of tax revenue (K) Expenditure on administration and defence
Answer

Answer:

Column-I Column-II
1. Surplus budget (C) Govt. Expenditure < Govt. Receipts
2. Deficit budget (F) Govt. Expenditure > Govt. Receipts
3. Revenue deficit (A) Revenue receipts > Revenue expenditure
4. Fiscal deficit (H) Total expenditure > total receipts
5. Primary deficit (B) Fiscal deficit – interest payments
6. Examples of direct tax (D) Income tax, corporate profit tax
7. Examples of indirect tax (I) Sale tax, excise duty
8. Examples of development expenditure (E) Expenditure on roads and health
9. Examples of non-development expenditure (K) Expenditure on administration and defence
10. Examples of capital expenditure (G) Loans granted to state governments
11. Sources of tax revenue (J) Sales tax, Income tax

We hope the given NCERT MCQ Questions for Class 12 Economics Chapter 5 Government Budget and the Economy with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 12 Economics Government Budget and the Economy MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

Class 12 Macroeconomics with Answers MCQ:

MCQ Questions for Class 12 Economics Chapter 3 Money and Banking with Answers

Money and Banking Class 12 MCQ Online Test With Answers Questions

Check the below NCERT MCQ Questions for Class 12 Economics Chapter 3 Money and Banking with Answers Pdf free download. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest exam pattern. We have provided Money and Banking Class 12 Economics MCQs Questions with Answers to help students understand the concept very well.

Class 12 Economics Chapter 3 Money and Banking MCQ With Answers

Economics Class 12 Chapter 3 MCQs On Money and Banking

Money And Banking Class 12 MCQ Question 1.
What is the defect of the barter system?
(A) Lack of double coincidence of wants
(B) Difficulty in the measurement of value
(C) Difficulty in store of value
(D) All of these

Answer

Answer: (D) All of these

Money And Banking MCQ Question 2.
Which of the following is the credit money?
(A) Cheque and draft
(B) Promissory note
(C) Exchange note
(D) All of these

Answer

Answer: (D) All of these

MCQ Of Money And Banking Class 12 Question 3.
Which among the following is the near money?
(A) Bonds
(B) Insurance policy
(C) Securities
(D) All of these

Answer

Answer: (D) All of these

Money Class 12 MCQ Question 4.
Which of the following is the feature of money?
(A) General acceptability
(B) Homogeneous unit
(C) Liquid asset
(D) All of these

Answer

Answer: (D) All of these

Money And Banking Class 12 MCQ With Answers Question 5.
In order to encourage investment in the economy, the Central Bank may ________
(A) Reduce Cash Reserve Ratio
(B) Increase Cash Reserve Ratio
(C) Sell Government securities in the open market
(D) Increase Bank Rate

Answer

Answer: (A) Reduce Cash Reserve Ratio

Money MCQ Class 12 Question 6.
Institution that accepts deposits for lending purpose is known as __________
(A) Commercial Bank
(B) Central Bank
(C) Government
(D) Public

Answer

Answer: (A) Commercial Bank

Class 12 Money And Banking MCQ Question 7.
Which of the following is the function of a commercial bank?
(A) Accepting deposits
(B) Credit creation
(C) Agency function
(D) All of these

Answer

Answer: (D) All of these

Class 12 Economics Money And Banking MCQ Question 8.
The central bank can increase the availability of credit by:
(A) Rasing repo rate
(B) Raising reverse repo rate
(C) Buying government securities
(D) Selling government securities

Answer

Answer: (D) Selling government securities

MCQ On Money And Banking Class 12 Question 9.
Giving permission to withdraw money by an amount more than deposited to is known as _________
(A) Advance
(B) Overdraft
(C) Loan
(D) None of these

Answer

Answer: (B) Overdraft

MCQ Of Money And Banking Question 10.
What are the alternative measures of money supply in India?
(A) M1
(B) M2
(C) M3 and M4
(D) All of these

Answer

Answer: (D) All of these

Money And Banking MCQs Question 11.
Who circulates all mint and one rupee not in India?
(A) Ministry of Finance
(B) RBI
(C) Ministry of External Affairs
(D) State Government

Answer

Answer: (A) Ministry of Finance

Money And Banking MCQ Class 12 Question 12.
Which of the following is the narrow measure of the money supply?
(A) M2
(B) M3
(C) M1
(D) M4

Answer

Answer: (C) M1

MCQ Questions On Money And Banking Class 12 Question 13.
When was the minimum reserve system started in India?
(A) 1947
(B) 1948
(C) 1951
(D) 1957

Answer

Answer: (D) 1957

MCQ Money And Banking Class 12 Question 14.
Which is the most liquid measure of the money supply?
(A) M4
(B) M3
(C) M2
(D) M1

Answer

Answer: (D) M1

Which is the most liquid measure of the money supply?

MCQs Of Money And Banking Class 12 Question 15.
High Powered Money includes:
(A) C + DD + OD
(B) C + R + OD
(C) C + R + TD
(D) C + DD + TD

Answer

Answer: (B) C + R + OD

MCQ Of Chapter Money And Banking Class 12 Question 16.
Indian Monetary System is based on ________
(A) Paper Standard
(B) Metallic Standard
(C) Gold Standard
(D) Credit Money Standard

Answer

Answer: (A) Paper Standard

Money Chapter Class 12 MCQs Question 17.
Which of the following is the apex bank of India?
(A) RBI
(B) SBI
(C) SBP
(D) PNB

Answer

Answer: (A) RBI

Money And Banking Class 12 MCQ Pdf Question 18.
Who has the right of note issue?
(A) Central Bank
(B) Commercial Bank
(C) Government
(D) Co-operative Bank

Answer

Answer: (A) Central Bank

Question 19.
Which of the following is the function of a Central bank?
(A) Issue of notes
(B) Banker to the Government and Banks
(C) Supply and control of money
(D) All of these

Answer

Answer: (D) All of these

Question 20.
The ratio of total deposits that a commercial bank has to keep with RBI is called:
(A) Statutory liquidity ratio
(B) Deposit ratio
(C) Cash reserve ratio
(D) Legal reserve ratio

Answer

Answer: (C) Cash reserve ratio

Question 21.
Demand deposits include
(A) Saving account deposits and fixed deposits
(B) Saving account deposits and current account deposits
(C) Current account deposits and fixed deposits
(D) All type of deposits

Answer

Answer: (B) Saving account deposits and current account deposits

Question 22.
What are the necessary conditions of the Barter System?
(a) Limited Needs
(b) Limited Exchange Area
(c) Economically Backward Society
(d) All the above

Answer

Answer: (d) All the above

Question 23.
What are the advantages of the Barter System?
(a) Simple System
(b) More Mutual Co-operation
(c) No Economic Disparities
(d) All the above

Answer

Answer: (d) All the above

Question 24.
Which one is the difficulty of the Barter System?
(a) Lack of Double Coincidence
(b) Difficulty of Division of the Goods
(c) Lack of General Acceptable Measure of Value
(d) All the above

Answer

Answer: (d) All the above

Question 25.
Which is the correct order of money evolution?
(a) Commodity Money, Paper Money, Metal Money
(b) Commodity Money, Metal Money, Paper Money, Credit Money
(c) Credit Money, Metal Money, Paper Money
(d) None of the above

Answer

Answer: (b) Commodity Money, Metal Money, Paper Money, Credit Money

Question 26.
“Money is what money does.” Who said it?
(a) Hartley Withers
(b) Hawtrey
(c) Thomas
(d) Keynes

Answer

Answer: (a) Hartley Withers

Question 27.
Which one is included in the primary function of money?
(a) Medium of Exchange
(b) Measure of Value
(c) Both (a) and (b)
(d) Store of Value

Answer

Answer: (c) Both (a) and (b)

Question 28.
Which one is included in the secondary function of money?
(a) To make Deferred Payments
(b) Store of Value
(c) Transfer of Value
(d) All of these

Answer

Answer: (d) All of these

Question 29.
“Money is a pivot around which the whole economy clusters.” Who said it?
(a) Keynes
(b) Robertson
(c) Marshall
(d) Hawtrey

Answer

Answer: (c) Marshall

Question 30.
The function of money is:
(a) Medium of Exchange
(b) Measure of Value
(c) Store of Value
(d) All the above

Answer

Answer: (d) All the above

Question 31.
The functions of money include:
(a) Value determination
(b) Store of value
(c) Means of exchange
(d) All of these

Answer

Answer: (d) All of these

Question 32.
Money is a matter which is:
(a) a measure of value
(b) accepted as a means of exchange
(c) used to store wealth
(d) All of these

Answer

Answer: (d) All of these

Question 33.
By supply of money we mean :
(a) Money deposited in the bank
(b) Money available with the public
(c) Deposits with post office savings bank
(d) All of these

Answer

Answer: (d) All of these

Question 34.
Which of the following is not a function of money?
(a) Medium of exchange
(b) Price stability
(c) Store of value
(d) Unit of account

Answer

Answer: (b) Price stability

Question 35.
Which one is the Bank of the Public?
(a) Commercial Bank
(b) Central Bank
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (a) Commercial Bank

Question 36.
The primary function of Commercial Bank is?
(a) Accepting Deposits
(b) Advancing Loans
(c) Credit Creation
(d) All of these

Answer

Answer: (d) All of these

Question 37.
Deposits accepted by the Commercial Banks:
(a) Current Deposits
(b) Saving Deposits
(c) Time Deposits
(d) All of these

Answer

Answer: (d) All of these

Question 38.
What type of loan is advanced by Commercial Banks?
(a) Cash Credit
(b) Overdraft
(c) Loan and Advance
(d) All of these

Answer

Answer: (d) All of these

Question 39.
Which function is the Secondary Function of Commercial Banks?
(a) Agency Function
(b) General Utility Function
(c) Social Function
(d) All of these

Answer

Answer: (d) All of these

Question 40.
Which is the Agency Function of Commercial Banks?
(a) Advancing Loans
(b) Accepting Deposits
(c) Act as Trustee
(d) Locker Facility

Answer

Answer: (c) Act as Trustee

Question 41.
Credit Multiplier is:
(a) \(\frac{1}{\mathrm{CRR}}\)
(b) \(cash \times \frac{1}{\text { CRR }}\)
(c) Cash x CRR
(d) None of these

Answer

Answer: (a) \(\frac{1}{\mathrm{CRR}}\)

Question 42.
Credit money is increased when CRR:
(a) Falls
(b) Rises
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (a) Falls

Question 43.
The full form of ATM is:
(a) Any Time Money
(b) All Time Money
(c) Automated Teller Machine
(d) Both (a) and (b)

Answer

Answer: (c) Automated Teller Machine

Question 44.
The main function of a commercial bank is:
(a) Credit control
(b) Loaning to other banks
(c) Accept deposits from customers
(d) All the above

Answer

Answer: (c) Accept deposits from customers

Question 45.
What is the Central Bank of India?
(a) Commercial Bank
(b) Central Bank
(c) Private Bank
(d) None of these

Answer

Answer: (a) Commercial Bank

Question 46.
Commercial banks:
(a) Issue currency notes
(b) Accepts deposits from customers
(c) Provide loans to customers
(d) Only (b) and (c)

Answer

Answer: (d) Only (b) and (c)

Question 47.
What is true for the Central Bank?
(a) Apex Bank of the Country
(b) Ownership of the Government
(c) Regulates the entire banking system in the country
(d) All the above

Answer

Answer: (d) All the above

Question 48.
Central Bank of India is:
(a) Reserve Bank of India
(b) State Bank of India
(c) Central Bank of India
(d) Bank of India

Answer

Answer: (a) Reserve Bank of India

Question 49.
Which of the following is the function of the Central Bank?
(a) Monopoly of Note Issue
(b) Banker of the Government
(c) Custodian of Foreign Exchange Reserves
(d) All the above

Answer

Answer: (d) All the above

Question 50.
Which type of currency is issued by Central Bank?
(a) Currency
(b) Credit Money
(c) Coins
(d) All of these

Answer

Answer: (a) Currency

Question 51.
Which is the major objective of credit control?
(a) To maintain Price Stability
(b) To stabilize Exchange Rate
(c) To production and Employment
(d) All the above

Answer

Answer: (b) To stabilize Exchange Rate

Question 52.
Which one is true?
(a) Bank rate is a rate at which Central Bank is ready to give credit to commercial banks
(b) Bank rate and interest rates are different
(c) Bank rate is the discount rate of the Central Bank
(d) All the above

Answer

Answer: (d) All the above

Question 53.
Which is not a quantitative method of credit control?
(a) Bank Rate
(b) Moral Suasion
(c) Open Market Operations
(d) Change in CRR

Answer

Answer: (b) Moral Suasion

Question 54.
Every bank is required to maintain a fixed percentage of its assets in the form of cash is called:
(a) Cash Reserve Ratio
(b) Statutory Liquidity Ratio
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (b) Statutory Liquidity Ratio

Question 55.
Reserve Bank of India was established in :
(a) 1947
(b) 1935
(c) 1937
(d) 1945

Answer

Answer: (b) 1935

Question 56.
Monetary policy is related with:
(a) Public Expenditure
(b) Taxes
(c) Public Debt
(d) Open market operations

Answer

Answer: (d) Open market operations

Question 57.
Which of the following issue paper currency in the country?
(a) Commercial Bank
(b) Central Bank
(c) World Bank
(d) Industrial Bank

Answer

Answer: (b) Central Bank

Question 58.
The central bank controls credit through:
(a) Bank rate
(b) Open market
(c) CRR
(d) All the above

Answer

Answer: (a) Bank rate

Question 59.
Which of the following is a qualitative method of credit control?
(a) Variation in cash reserve ratio of banks
(b) Restriction on consumer credit
(c) Open market operations
(d) Variation in bank rate

Answer

Answer: (b) Restriction on consumer credit

Question 60.
The major objectives of monetary policy is/are:
(a) Increase in output and employment
(b) Stability in the foreign exchange rate
(c) Price stability
(d) All of these

Answer

Answer: (d) All of these

Question 61.
Who regulates the money supply?
(a) Govt, of India
(b) Reserve Bank of India
(c) Commercial Bank
(d) Planning Commission

Answer

Answer: (b) Reserve Bank of India

Question 62.
With which Narsimham Committee is related to?
(a) Tax Reforms
(b) Banking Reforms
(c) Agriculture Reforms
(d) Infrastructure Reforms

Answer

Answer: (b) Banking Reforms

Question 63.
In which year the second Narsimham Committee was constituted?
(a) 1978
(b) 1991
(c) 1997
(d) 1998

Answer

Answer: (d) 1998

Question 64.
Banking Ombudsman Scheme was announced in the year:
(a) 1990
(b) 1995
(c) 1997
(d) 2000

Answer

Answer: (b) 1995

Question 65.
Which was included in the purview of the Banking Ombudsman Scheme?
(a) All Scheduled Banks
(b) Co-operative Banks
(c) Commerical Banks
(d) All of these

Answer

Answer: (d) All of these

Question 66.
Which committee was constituted for suggesting consumer service improvements in banks?
(a) Raja Chelliah Committee
(b) Goiporia Committee
(c) Verma Committee
(d) Chakrabarty Committee

Answer

Answer: (b) Goiporia Committee

Question 67.
For revival and restructuring of weak banks of the public sector, which committee was constituted?
(a) Verma Committee
(b) Goiporia Committee
(c) Rekhi Committee
(d) Narsimham Committee

Answer

Answer: (a) Verma Committee

Question 68.
RBI announced the guidelines to issue licenses to new banks of the private sector on:
(a) January 22, 1993
(b) March 15, 1995
(c) April 1, 1999
(d) None of these

Answer

Answer: (a) January 22, 1993

Question 69.
Who is the custodian of the Indian Banking system?
(a) Reserve Bank of India
(b) State Bank of India
(c) Unit Trust of India
(d) LIC of India

Answer

Answer: (a) Reserve Bank of India

Question 70.
Banking Sector Reforms in India began in:
(a) 1969
(b) 1981
(c) 1991
(d) 2001

Answer

Answer: (c) 1991

Banking Sector Reforms in India began in:

Question 71.
14 big scheduled commercial banks in India were nationalised in:
(a) 1949
(b) 1955
(c) 1969
(d) 2000

Answer

Answer: (c) 1969

Question 72.
Which is associated with reforms in the banking sector?
(a) Year 1991
(b) Narsimham Committee
(c) Y.V. Reddy Committee
(d) Only (a) and (b)

Answer

Answer: (d) Only (a) and (b)

Question 73.
“Money is what money does”. Who said this:
(a) Hartley Withers
(b) Harte
(c) Prof. Thomas
(d) Keynes

Answer

Answer: (a) Hartley Withers

Question 74.
The function of money is:
(a) Medium of exchange
(b) Measure of value
(c) Store of value
(d) All of the above

Answer

Answer: (a) Medium of exchange

Question 75.
The meaning of money supply is:
(a) Money deposits in the bank
(b) Cash available with public
(c) Savings in the post office
(d) All of the above

Answer

Answer: (d) All of the above.

Question 76.
What is the Central Bank of India:
(a) Commercial Banks
(b) Central Bank
(c) Private Bank
(d) None of these

Answer

Answer: (a) Commercial Banks

Question 77.
Through which method we can withdraw money from the bank:
(a) Drawing letter
(b) Cheque
(c) A.T.M.
(d) All of the above

Answer

Answer: (d) All of the above.

Question 78.
Who is the guardian of the Indian Banking System:
(a) Reserve Bank of India
(b) State Bank of India
(c) Unit Trust of India
(d) Life Insurance Company of India.

Answer

Answer: (a) Reserve Bank of India

Question 79.
Narasimham Committee is related to what:
(a) Improvement in Taxation
(b) Improvement in Banking
(c) Improvement in Agriculture
(d) Improvement in Infrastructure

Answer

Answer: (b) Improvement in Banking

Fill in the blanks:

Question 1.
The exchange of goods for goods is called _____ exchange.

Answer

Answer: barter

Question 2.
______ is a narrow concept of money.

Answer

Answer: M1

Question 3.
________ is a broad concept of money.

Answer

Answer: M3

Question 4.
_______ are the deposits which are payable by the banks to the customers after a fixed period.

Answer

Answer: Time deposits

Question 5.
Currency money is also known as ______ money.

Answer

Answer: fiat

Question 6.
Supply of money is a _______ concept.

Answer

Answer: stock

Question 7.
The money multiplier is the rate of change in _____ due to initial deposits.

Answer

Answer: money supply

Question 8.
Currency with public means _____ and ______ with the public outside the bank.

Answer

Answer: coins, currency notes

Question 9.
_______ is the Central Bank of India.

Answer

Answer: RBI

Question 10.
Commercial banks are an important source of _________ in the economy.

Answer

Answer: money supply

Question 11.
Banks serve as a channel between _______ and investors.

Answer

Answer: depositors

Question 12.
Two essential functions of a bank are accepting deposit and ________

Answer

Answer: advancing loan

Question 13.
The Central Bank is the apex institution of the _______ system.

Answer

Answer: Monetary

Question 14.
Bank rate is the _______ instrument of Central Bank.

Answer

Answer: Quantitative

Question 15.
Central Bank of India is………………..

Answer

Answer: Reserve Bank of India

Question 16.
Bank rate is also known as………………..

Answer

Answer: Redemption

Question 17.
The bank generates……………….. deposits in credit creation.

Answer

Answer: Derivative

Question 18.
When CRR decreases, credit creation………………..

Answer

Answer: Increases

Question 19.
The measure of deferred payment is ……………….. function of money.

Answer

Answer: Secondary

Question 20.
Medium of exchange is ……………….. function of money.

Answer

Answer: Primary

Question 21.
The static and dynamic function of money is divided by………………..

Answer

Answer: Paul Einzig

State true or false:

Question 1.
Money as a medium of exchange solves the problem of lack of double coincidence of want.

Answer

Answer: True

Question 2.
Legal tender money has a legal sanction behind it by the government.

Answer

Answer: True

Question 3.
M1 includes saving deposits of post office savings banks.

Answer

Answer: False

Question 4.
The money supply is a flow variable.

Answer

Answer: False

Question 5.
Commercial Bank plays no role in stock of money supply in the economy.

Answer

Answer: False

Question 6.
Credit money is money received as credit from banks.

Answer

Answer: False

Question 7.
Commercial banks do not create money.

Answer

Answer: False

Question 8.
Bank rate is a qualitative method of credit control.

Answer

Answer: False

Question 9.
There is an inverse relation between LRR and the size of the money multiplier.

Answer

Answer: True

Question 10.
Money is needed for day-to-day transactions.

Answer

Answer: True

Question 11.
The precautionary demand for money increases with the proportionate increase in income.

Answer

Answer: True

Question 12.
Reserve Bank of India provides loans to the public.

Answer

Answer: False

Question 13.
Along with the Reserve Bank of India, Commercial banks are also authorized to issue currency.

Answer

Answer: False

Question 14.
Reliable money also includes cheques.

Answer

Answer: False

Question 15.
Reserve Bank of India cannot become the owner of any real estate.

Answer

Answer: True

Match the following:

Question 1.

‘A’ ‘B’
1. Primary function of money (a) Paper money
2. Indian Rupee is (b) Bad master
3. An institution which deals with money (c) Measure of value
4. RBI established on (d) Bank
5. Money is a good servant but (e) 1 April 1935.
Answer

Answer:

‘A’ ‘B’
1. Primary function of money (c) Measure of value
2. Indian Rupee is (a) Paper money
3. An institution which deals with money (d) Bank
4. RBI established on (e) 1 April 1935.
5. Money is a good servant but (b) Bad master

Question 2.

Column-I Column-II
1. Fiat money (A) Reserve Bank of India
2. Legal tender (B) Banking through electronic media
3. Apex bank of India (C) Must be accepted as a medium of exchange
4. Central bank in India (D) Statutory Liquidity Ratio
5. E-banking (E) Circulated with the order of government
6. SLR (F) Cash Reserve Ratio
7. CRR (G) Issuing notes
8. Bank rate (H) The central bank of India
9. Function of commercial bank (I) Determined by the central bank
10. Function of the central bank (J) Accepting deposits
Answer

Answer:

Column-I Column-II
1. Fiat money (E) Circulated with the order of government
2. Legal tender (C) Must be accepted as a medium of exchange
3. Apex bank of India (H) The central bank of India
4. Central bank in India (A) Reserve Bank of India
5. E-banking (B) Banking through electronic media
6. SLR (D) Statutory Liquidity Ratio
7. CRR (F) Cash Reserve Ratio
8. Bank rate (I) Determined by the central bank
9. Function of commercial bank (J) Accepting deposits
10. Function of the central bank (G) Issuing notes

We hope the given NCERT MCQ Questions for Class 12 Economics Chapter 3 Money and Banking with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 12 Economics Money and Banking MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

Class 12 Macroeconomics with Answers MCQ:

MCQ Questions for Class 12 Economics Unit 8 Development Experience of India: A Comparison with Neighbours with Answers

MCQ Questions for Class 12 Economics Unit 8 Development Experience of India: A Comparison with Neighbours with Answers

Check the below NCERT MCQ Questions for Class 12 Economics Unit 8 Development Experience of India: A Comparison with Neighbours with Answers Pdf free download. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest exam pattern. We have provided Development Experience of India: A Comparison with Neighbours Class 12 Economics MCQs Questions with Answers to help students understand the concept very well.

Development Experience of India: A Comparison with Neighbours Class 12 MCQs Questions with Answers

Development Experience Of India Class 12 MCQ Question 1.
China republic was established in:
(a) 1945
(b) 1947
(c) 1949
(d) 1951

Answer

Answer: (c) 1949

MCQ On India And Its Neighbouring Countries Class 12 Question 2.
Which is the poorest nation:
(a) India
(b) China
(c) Pakistan
(d) Kerala

Answer

Answer: (c) Pakistan

MCQ Of Indian Economic Development Class 12 Question 3.
In year 2010 which was biggest importer:
(a) America
(b) Japan
(c) China
(d) India

Answer

Answer: (c) China

MCQ Questions For Class 12 Indian Economics Pdf Question 4.
Economics of India and Pakistan depends for G.T.P:
(a) On primary level
(b) Secondary level
(c) Tertiary level
(d) None of these.

Answer

Answer: (c) Tertiary level

Economics of India and Pakistan depends for G.T.P:

Economics Class 12 MCQ Questions Question 5.
Which country adopted infant policy:
(a) India
(b) China
(c) Pakistan
(d) None of these.

Answer

Answer: (b) China

Fill in the blanks:

1. Biggest contributor to India’s National Income is …………………………

Answer

Answer: Service

2. In China great leap forward mission started in ………………………..

Answer

Answer: 1958

3. Pakistan has better situation in field of ………………………. than India and China.

Answer

Answer: Availability of facility

4. In ……………………… urban population is least.

Answer

Answer: India

5. Emission of Carbon – di – oxide is maximum is …………………………..

Answer

Answer: China

State true or false:

1. In 1978 ‘Reform policy’ started by China get a great below.

Answer

Answer: True

2. Ratio of people below poverty line is higher in India.

Answer

Answer: True

3. Economy of Pakistan achieved great help by remittance of labourers.

Answer

Answer: True

4. In comparison to China Indian human development index is higher.

Answer

Answer: False

5. The Great leap Forward programme was started in Pakistan.

Answer

Answer: False

Match the columns:

Column A Column B
1. Economic development in China (a) Mao
2. India’s new development policy (b) China
3. The great leap forward (c) 1978
4. Commune (d) Pakistan
5. First contribution in 1956 (e) 1991
Answer

Answer:

Column A Column B
1. Economic development in China (c) 1978
2. India’s new development policy (e) 1991.
3. The great leap forward (a) Mao
4. Commune (b) China
5. First contribution in 1956 (d) Pakistan

Answer in one word:

1. Which model was adopted by Pakistan for development?

Answer

Answer: Statism

2. Renmanbi is the currency of which country?

Answer

Answer: China

3. Which price policy is there in China?

Answer

Answer: Double

4. In 2014 HDI in India was?

Answer

Answer: 0 – 609

5. Which is the poorest among India, Pakistan and China?

Answer

Answer: Pakistan

6. When did China started five year plans?

Answer

Answer: In 1953.

7. When did economic reforms started in India and Pakistan?

Answer

Answer: Economic reforms were started in 1951 in India and in 1956 in Pakistan.

8. Name the two areas where India is ahead of Pakistan?

Answer

Answer: Rate of GDP and Per Capita Income.

9. In which area China is ahead of India and Pakistan?

Answer

Answer: Human development and GNP per capita.

10. What is liberty indicator?

Answer

Answer: Liberty indicators means a tigers night to play in the governance of their country.

We hope the given NCERT MCQ Questions for Class 12 Economics Unit 8 Development Experience of India: A Comparison with Neighbours with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 12 Economics Development Experience of India: A Comparison with Neighbours MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.