BHARATI VIDYAPEETH PRASHALA & JR.

COLLEGE
Sector-3, C.B.D., Belapur, Navi Mumbai – 400614
SECOND UNIT TEST 2020 – 2021

Date: - 05/02/2021 Marks:- 50

Std. :- XII Commerce ECONOMICS Time :- 2.5 Hrs.

Note : 1) All questions are compulsory.

2) Draw tables / diagrams wherever necessary.
3) Figures to the right indicate full marks.
4) Write answers to all questions on new pages.

Q.1 (A) Choose the correct option (5)

1) The relationship between demand for goods and price of its substitute is……..
a) direct b) Inverse c) no effect d) Can be
direct and inverse
b) Options: i) a ii) b iii) c iv) d
2) Ed = O in case of…………..
a) Luxuries b) Normal goods c) Necessities d) Comfort
Options : i) a ii) b iii) c iv) d
3) In India national income is estimated using…….
a) output b) Income c) Expenditure d) Combination of output and income
Options: i) a ii) b iii) c iv) d
4) Transfer payment are…….method
a) Gift b) Donation c) Scholarship d) Charity
i) a ii) b iii) c iv) d
5) Type of govt budge is……..
a) Balance b) Surplus c) Deficit d) Personal or Individual
i) b,c,d ii) a,b,c iii) c,d,a iv) d,a,b

(B) Find the odd words:- (5)

1) Types of Bank Account: Saving, Demat, Recurring, Current
2) Unregulated Financial intermediates: Mutual fund, Nidhi, Chit fund, Loan Companies
3) Financial Assets: Bonds, Land, Govt. Securities, Derivatives
4) Bank rate, open market operations, CRR, SLR, IMF
5) Quantitative Tools : Bank rate, Open market operations, Foreign Exchange rate,
Variable reserve ratios

.Q. 2 (A) Identify and explain the concepts from given illustrations (Any 2) (4)
1) Vrinda receives monthly pension of Rs.5,000/- from the State Government
2) Shobha collected data regarding the money value of all final goods and
services produced in the country for the financial year 2018-2019.
3) Raghu’s father regularly invests his money in stock and bonds.
(B) Distinguish between (Any 2) (4)
1) Internal debt and External debt
2) Money market and Capital market
3) Relatively elastic and Relatively inelastic demand

Q.3 Answer the following questions (Any 2) (8)

1) Explain the two-sector model of circular flow of national income.

2) Explain the non-tax sources of revenue of the government.
3) Explain the functions of commercial bank.

Q.4 State with reasons whether you agree or disagree with following statement
(Any 2) (8)
1) Price is the only determinant of demand.
2) Index numbers measure changes in the price level only.
3) There are many theoretical difficulties in the measurement of national income.

Q.5 Study the following table, passage, figure and answer the question (Any Two) (8)

1) Money market is a market for financial assets that are close substitute for money.
They instrument deal with in this market are liquid. They can be converted into cash
money market facilities mobilization of funds for short period, the main function is to
provide liquidity.

Questions: -
a) Who facilitates mobilization of funds?
b) Define money market
c) What is the main function of this market?
d) Give your opinion about money market.

2) Calculate price index number from the given data:-

Commodity A B C D
Price in 2005 (INR) 6 16 24 4
Price in 2010 (INR) 8 18 28 6
Q.6 Answer in details (Any 1) (8)
1) Explain the income method and expenditure method of measuring national income.
2) Explain the functions of RBI.

₰ All the Best ₰