SEC:12TH COMMERCE DATE:17/07/2021

TIME:01:30 Hrs Max Marks:40M

UNIT TEST -1
ECONOMICS

General Instruction:

1. All questions in both the sections are compulsory

2. Marks for questions are indicated against each question
3. Question No. 1-5 and 14-18 are very short answer questions carrying 1 mark
each. They are required to be answered in one sentence.
4. Question No.6-8 [any one] and 19-21 [any one] are short answer questions
carrying 3 marks each. Answers should not normally exceed 60 words each
5. Question No.9-11 [any two] and 22-23 [any one] are also short answer
questions carrying 4 marks each. Answers should not normally exceed 70
words each.
6. Question No.12 [any one] and 24-25 [any one] are long answer questions
carrying 6 marks each. Answers to them should not normally exceed 100
words each.
7. Answers should be brief and to the point and the above word limit be adhered
to as far as possible.
PART - A

1. The ratio of total deposits that a commercial bank has to keep with Reserve bank of
India is called: (choose the correct alternative)
a) Statutory liquidity ratio b) Deposit ratio
c) Cash reserve ratio d) Legal reserve ratio
2. Barter is a system of exchange in which goods and services are directly traded for
other goods and services without the mediation of money. [true/false]
3. What are the various money stock measures?
a) M1 and M2 b) M7 and M8
c) M3 and M4 d) Both a and c are correct
4. Statutory Liquidity Ratio (SLR) is ____
a) is the ratio of total demand and time deposits of commercial bank which it has to
keep in the form of specified liquid assets.

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 b) is the ratio of total demand and time deposits of commercial bank which it has to
keep in the form of cash.
c) is the total demand deposits of commercial bank which it has to keep in the form
of money
d) is the time deposits of commercial bank which it has to keep in the form of
specified liquid assets.
5. What are the quantitative instruments of credit control?
a) Bank Rate, Repo rate b) Open Market Operations
c) Cash Reserve Ratio d) All the above

6. Explain ‘banker to the government’ function of the central bank.

7. Explain the role of reverse repo rate in controlling money supply.
8. State the steps of measuring National Income by value added

9. Give the meaning of factor income to abroad and factor income from abroad. Also
give an example of each.
10. What is money multiplier? What determines the value of this multiplier?
11. What role of RBI is known as ‘lender of last resort’?

12. Calculate Net National Product at Factor Cost from the following data
S.No. Contents Rs. (in crores)
(i) Savings of Non-departmental Enterprises 50
(ii) Income From property and Entrepreneurship accruing to
the Government Administrative departments 70
(iii) Personal Tax 90
(iv) National Debt interest 20
(v) Retained Earnings of Private Corporate Sector 10
(vi) Current Transfer Payments by Government 40
(vii) Consumption of Fixed Capital 60
(viii) Corporation Tax 30
(ix) Net Indirect Tax 80
(x) Net Current Transfers from rest of the Word (-)10
(xi) Personal Disposable Income 1000
(xii) Net Factor Income to Abroad (-)10

13. a. Suppose the GDP at market price of a country in a particular year was Rs.1,100
crores.
Net Factor Income from Abroad was Rs.100 crores. The value of Indirect taxes.
Subsidies was Rs.150 crores and National Income was Rs.850 crores. Calculate the
aggregate value of depreciation.
b. The value of the nominal GDP of an economy was Rs.2,500 crores in a particular
year. The value of GDP of that country during the same year, evaluated at the prices
of same base year, was Rs.3,000 crores. Calculate the value of the GDP deflator of
the year in percentage terms.

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 PART – B

14. The reasons which led to economic reforms in India include:

i) Unfavourable Balance of Payment
ii) Inflation
iii) Falling foreign exchange reserves
iv) all the above
15. The reforms introduced under liberalization include:
i) Deregulation of industrial sector
ii) Trade and investment policy reforms
iii) tax reforms
iv) All the above
16. GST (Goods and Services Tax) is an indirect tax for the whole nation, which will
make India one unified common market. [True/False)
17. When was GST implemented in India?
i) 20th October, 2017
ii) 1st September, 2017
iii) 1st July, 2017
iv) 1st July, 2018
18. What type of goods are not covered under the GSTS bill?
i) Food items
ii) Liquor
iii) Furnitures
iv) Electronics items

19. What were the main causes of India’s agricultural stagnation during the
colonial period?
20. Define socialism. Why did our leaders not follow the path of socialism at the
time of independence?
21. What is economic planning?

22. Discuss the phases of ‘Green Revolution’ in India.

23. List the problems faced by small scale industries in India.

24. Define economic system. What are characteristics of different 3 types of

economic systems?
25. Discuss the benefits of WTO to India.