THE S. D.

PUBLIC SCHOOL, MUZAFFARNAGAR

HOLIDAYS HOMEWORK
CLASS XII
ECONOMICS
Select one topic from the following topics and prepare a project for the same:-
1. Environment and sustainable development
2. Government budget
3. Evolution of Money & Banking
4. Rural development
5. New economic policy, 1991
6. Human capital formation
7. Foreign Exchange Rate
8. Balance of Payment
Expected Checklist:
1. Introduction of topic/title.
2. Identifying the causes, consequences and/or remedies.
3. Various stakeholders and effect on each of them.
4. Advantages and disadvantages of situations or issues identified.
5. Short-term and long-term implications of economic strategies suggested in the course of
research.
6. Validity, reliability, appropriateness and relevance of data used for research work and for
presentation in the project file.
7. Presentation and writing that is succinct and coherent in project file.
8. Citation of the materials referred to, in the file in footnotes, resources section, bibliography etc.
Worksheet
MONEY
Q-1 In a hypothetical economy, Mr. Neeraj has deposited ₹100 in the bank. If it is assumed that there is
no other currency circulation in the economy, then the total money supply in the economy will
be……….. (Fill up the blank with correct alternative)
(a) zero (b) not defined (c) 100 (d) 120

Q-2. Read the following statements: Assertion (A) and Reason (R), Choose one of the correct
alternatives given below:
Assertion (A): Demand Deposits are considered as a convenient mode of payment for execution of
even the high value transactions.
Reason (R): Demand Deposits are non-withdrawable in nature and cannot be withdrawn against issue
of cheques and other similar instruments of payment.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion
(A).
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A)
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.

Q-3. Demand Deposits include..............and…. ….. (Fill up the blank with correct alternative)
(i) Saving account deposits (ii) Fixed deposits
(iii) Current account deposits (iv) Post Office Savings
Alternatives:
(a) (i) and (ii) (b) (ii) and (iii)
(c) (i) and (iii) (d) i and iv

4. Supply of money refers to.....................

(a) currency held by the public
(b) currency held by Reserve Bank of India (RBI)
(c) currency held by the public and demand deposits with commercial banks
(d) currency held in the government account.

5. Two components of money supply are………... and………..

6. State the two components of M1 measure of money supply.

7. Define Money Supply.

8. Demand deposits include: (Choose the correct alternative)

(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
BANKING
1. Identify which of the following bank does not interact directly with the general public? (Choose the
correct alternative)
(a) Bank of India (b) State Bank of India
(c) Central Bank of India (d) Reserve Bank of India

2. Ms. Sakshi, an economics teacher, was explaining the concept of 'minimum percentage of the total
deposits to be kept by any commercial bank with the Central Bank of the country, as per norms and
statute prevailing in the country". From the following, choose the correct alternative which specifies
towards the concept explained by her?
(a) Cash Reserve Ratio (b) Repo Rate
(c) Bank Rate (d) Statutory Liquidity Ratio.

3. Identify which of the following is not a function of the Reserve Bank of India? (Choose the correct
alternative)
(a) To act as the banker to the Government of India.
(b) To act as the custodian of the gold reserve of India
(c) To act as the financial advisor to the Government of India
(d) To issue coins and one rupee note.

4. Suppose in an economy, the initial deposits of 400 crores lead to the creation of total deposits worth
4000 crores. Under the given situation the value of reserve requirements would be...... (Fill up the
blank with correct alternative)
(a) 0.01 (b) 1
(c) 0.1 (d) 0.4
5. Read the following statements carefully and choose the correct alternatives given below: Statement
1: The value of money multiplier is determined by the reserve ratio prevailing in the monetary
system.
Statement 2: The process of credit creation relates to the value of reserve ratio.
Alternatives:
(a) Both the statements are true.
(b) Both the statements are false.
(c) Statement 1 is true and Statement 2 is false.
(d) Statement 2 is true and Statement 1 is false.

6. In the present COVID-19 times, many economists have raised their concerns that Indian economy
may have to face a deflationary situation, due to reduced economic activities in the country. Suppose
you are a member of the high powered committee constituted by the Reserve Bank of India (RBI). You
have suggested that as the supervisor of commercial banks, ____________(restriction/release) of the
money supply be ensured, by the Reserve Bank of India (RBI).

7. If the entire additional income of an economy is consumed, the value of investment multiplier will
be _____.
(a) zero (0) (b) not defined (∞)
(c) one (1) (d) ten(10)
8.. State whether the following statement is true or false :
"To reduce inflation, the Central Bank should reduce Cash Reserve Ratio (CRR)."
9.______________ is the agent and advisor to the Government of India.
10. Loans offered by commercial banks _________(increase/decrease) the money supply in the
economy. (Fill up the blank with correct alternative)

11. Define money multiplier.

12. In order to encourage investment in the economy, the Central Bank may
(Choose the correct alternative)
(a) Reduce Cash Reserve Ratio (b) Increase Cash Reserve Ratio
(c) Sell Government Securities in open market (d) Increase Bank rate

13. Credit creation by commercial banks is determined by

(a) Cash Reserve Ratio (CRR) (b) Statutory Liquidity Ratio (SLR)
(c) Initial Deposits (d) All the above

14. The Central Bank can increase availability of credit by……….,

(a) Raising repo rate (b) Raising reverse repo rate
(c) Buying government securities (d) Selling government securities

Short questions
1. (a) Define money multiplier.
(b) "Credit creation is inversely related to the reserve deposit ratio. Justify the given statement, using
a hypothetical example.
2. Using a hypothetical numerical example, explain the process of credit creation by a commercial
bank.

3. "Central bank acts as the banker to the government". Elaborate the given statement.

4. What role does credit multiplier play in determining the credit creation capacity of the banking
system? Use a numerical illustration to explain.

5. Elaborate any two instruments of credit control, exercised by the Reserve Bank of India.

6. How does the Central Bank control the credit with the help of 'Bank Rate'? Elaborate.

7. Distinguish between 'Qualitative and Quantitative tools of credit control as may be used by a
Central Bank.

8. Explain 'banker to the government' function of the Central Bank.

9. Currency is issued by the central bank, yet we say that commercial banks create money. Explain.
How is this money creation by commercial banks likely to affect the national income? Explain.

GOVERNMENT BUDGET
1. "In the Annual Budget 2022-23, the Government of India set up disinvestment targets of Rs. 65,000
crore”. Such proceeds from disinvestment can be classified as _______receipts in the government
budget as it leads to __________ of the Government.
(a) Capital, Decrease in Assets. (b) Revenue, Increase in Assets
(c) Capital, Increase in Liabilities. (d) Revenue, Decrease in Liabilities

2. The Government of India has decided to vaccinate the adult population of India (with
Covaxin/Covishield), without any charge. This would be categorised as………….
(Fill in the blank with correct alternative)
(a) revenue nature income (b) capital nature expenditure
(c) revenue nature expenditure (d) capital nature income

3. The Government can achieve its budget objective of 'Redistribution of Income' by…………. (Fill up
the blank with correct alternative)
(a) managing the General Price Level in the economy to the desired level.
(b) increasing the Gross Domestic Products (GDP) of the economy.
(c) bringing the production of goods and services under its direct and absolute control.
(d) rationalisation of taxes in pro-poor direction.

4. State whether the following statement is true or false:

"Government Budget is an important monetary policy instrument."

5. Disinvestment is a _______________(capital/revenue) receipt of the government. (Choose the correct

alternative)
6. . If the Government establishes a new university, this expenditure incurred in the Government
Budget will be a ______________ type of expenditure.

7. If the Government establishes a new hospital, this expenditure incurred in the Government Budget
will be a____________ type of expenditure. (fill in the blank with correct answer)

8. Primary deficit in a government budget will be zero, when alternative) (Choose the correct
(a) revenue deficit is zero
(b) net interest payments are zero
(c) fiscal deficit is zero
(d) fiscal deficit is equal to interest payment

9. Give any one example of debt creating capital receipts in the Government Budget.

10. Fiscal deficit equals: (Choose the correct alternative)

(a) Interest payments (b) Borrowings
(c) Interest payments less borrowing (d) Borrowings less interest payments

11. Primary deficit equals (Choose the correct alternative)

(a) Borrowings (b) Interest payments
(c) Borrowings less interest payments (d) Borrowings and interest payments

12. Borrowing in government budget is: (Choose the correct alternative)

(a) Revenue deficit (b) Fiscal deficit
(c) Primary deficit (d) Deficit in taxes

13. The non-tax revenue in the following is: (Choose the correct alternative)
(a) Export duty (b) Import duty
(c) Dividends (d) Excise

14. Primary deficit in a government budget is: (Choose the correct alternative)
(a) Revenue expenditure - Revenue receipts (b) Total expenditure - Total Receipts
(c) Revenue deficit - Revenue payments (d) Fiscal deficit - Interest payments

15. Direct tax is called direct because it is collected directly from (Choose the correct alternative)
(a) The producers on goods produced (b) The sellers on goods sold
(c) The buyers of goods (d) The income earners

SHORT ANSWER TYPE QUESTIONS.

1. Distinguish between direct and indirect taxes. Give an example of each.

3. Explain how the government budget can be helpful in bringing economic stabilisation in the
economy.

4. Explain how the government budget can be used to influence distribution of income

5. (a) Distinguish between Tax Revenue and Non-Tax Revenue.

(b) State any one example of Capital Expenditure.

6. "The Government Budget of a country cannot have fiscal deficit without the existence of revenue
deficit." Defend or refute the given statement.

7. Elaborate the objective of 'allocation of resources' in the Government Budget.

8. (a) How are tax receipts different from non -tax receipts? Discuss briefly
(b) State any two items of revenue expenditure in a Government budget.

9. How are capital expenditure different from revenue expenditure?

10. Classify the following statements as revenue receipts or capital receipts. Give valid reasons in
support of your answer.
(i) Financial help from a multinational corporation for victims in a flood affected area
(ii) Sale of shares of a Public Sector

Accountancy
One project of specific nature will be prepared using tools of financial statement analysis. The data for
this will be drawn mainly from quarterly or half yearly or annual reports of corporate sector. There
are four tools of analysis given in the syllabus for the analysis of Financial Statements namely: -
a. Comparative Statement
b. Common Size Statements
c. Ratio Analysis
d. Cash Flow Statement
Any two or more (Ratio Analysis and Cash Flow Statement will be more preferable) of these tools are
to be used to derive conclusions. No project is to be prepared on the tools, but these tools are to be
used to achieve the object of the project. For instance, there will not be any project on the 'Ratios' as
such, but ratios will be used in the development of the project to reach a conclusion.
Students will prepare a Project File to record their work related to the problems attempted by
them in the following format :
1. First page of the file should describe title of work, identity of student, school, and the teacher
concerned.
2. Index to indicate columns for title of work, page no., date, teacher's remarks and signature.
3. The format for Project Work will be :
a. Statement of the problem/Name of the Project
b. Objectives
c. Period of Study
d. Source Material
e. Tools of Analysis used
f. Processing and Tabulation of data
g. Diagrammatic/graphic presentation- pie-diagrams, bar diagrams and graphs.
h. Derivations, Interpretation and Conclusion.
i. Assumptions (if any)
Project File should be neatly handwritten and presentable with page numbers. Each step of the
solution needs to be highlighted. Conclusions drawn should be placed in boxes at the end.
COMPETENCY BASED QUESTIONS
Past examinations questions given in the last of textbook link is also provided for the same.
https://drive.google.com/file/d/1CgBBxMVkWuCj0E8i1yC3-IkJnXCn8F7s/view?usp=sharing

BUSINESS STUDIES
Students are supposed to select one unit out of four and are required to make only one project from
the selected unit.
I. Project One: Elements of Business Environment
The students are expected to select any one of the following to complete the project in this unit:-
1. Changes witnessed over the last few years on mode of packaging and its economic impact.
2. The reasons behind changes in the following: Coca – Cola and Fanta in the seventies to Thumps
up and Campa Cola in the eighties to Pepsi and Coke in nineties.
3. Changing role of the women in the past 25 years relating to joint families, nuclear families,
women as a bread earner of the family, changes in the requirement trend of mixers, washing
machines, micro wave and standard of living.
4. The changes in the pattern of import and export of different Products.
5. The trend in the changing interest rates and their effect on savings.
6. A study on child labour laws, its implementation and consequences.
7. The state of ‘anti plastic campaign,’ the law, its effects and implementation.
8. The laws of mining /setting up of industries, rules and regulations, licences required for
running that business.
9. Social factors affecting acceptance and rejection of an identified product. (Dish washer, Atta
maker, etc)
10. Change in the man-machine ratio with technological advances resulting in change of cost
structure.

II. Project Two: Principles of Management

The students are required to visit any one of the following:
1. A departmental store
2. An Industrial unit
3. A fast-food outlet
4. Any other organisation
They are required to observe the application of the general Principles of management advocated by
Fayol or They may enquire into the application of scientific management techniques by F.W. Taylor in
the unit visited. It may be done as a group activity.

III. Project Three: Stock Exchange

The purpose of this project is to teach school students the values of investing and utilising the stock
market. The basis of this project is to learn about the stock market while investing a specified amount
of fake money in certain stocks.
The students are expected to:-
a. Develop a brief report on History of Stock Exchanges in India.
b. Prepare a list of at least 25 companies listed on a Stock Exchange.
c. To make an imaginary portfolio totalling a sum of Rs. 50,000 equally in any of the 5 companies
of their choice listed above over a period of twenty working days.
d. The students may be required to report the prices of the stocks on daily basis and present it
diagrammatically on the graph paper.
The students are expected to find the value of their investments and accordingly rearrange their
portfolio. The project work should cover the following aspects:-
 1. Graphical presentation of the share prices of different companies on different dates.
2. Change in market value of shares due to change of seasons, festivals, natural and human
disasters.
3. Change in market value of shares due to change in political environment/ policies of various
countries/crisis in developed countries or any other reasons
4. Identify the top ten companies out of the 25 selected on the basis of their market value of
shares. It does not matter if they have made profits or losses.

IV. Project Four: Marketing

Identify one product/service which the students may like to manufacture/provide. Now the students
are required to make a project on the identified product/service keeping in mind the following:
1. Why have they selected this product/service?
2. Find out ‘5’ competitive brands that exist in the market.
3. What permission and licences would be required to make the product?
4. What are your competitors Unique Selling Proposition.[U.S.P.]?
5. Does your product have any range give details?
6. What is the name of your product?
7. Enlist its features.
8. Draw the ‘Label’ of your product.
9. Draw a logo for your product.
10. Draft a tag line.
11. What is the selling price of your competitor’s product?
a. Selling price to consumer
b. Selling price to retailer
c. Selling price to wholesaler
12. What is the profit margin in percentage to the Manufacturer, Wholesaler and Retailer.
13. How will your product be packaged?
14. Which channel of distribution are you going to use? Give reasons for selection?
15. Decisions related to warehousing, state reasons.
16. What is going to be your selling price?
a. To consumer
b. To retailer
c. To wholesaler
17. List 5 ways of promoting your product.
18. Any schemes for
a. To consumer
b. To retailer
c. To wholesaler
19. What is going to be your ‘U.S.P?
20. What means of transport you will use and why?
21. Draft a social message for your label.
22. What cost effective techniques will you follow for your product.
23. What cost effective techniques will you follow for your promotion plan.
On the basis of the work done by the students the project report should include the following:
Type of product /service identified and the (consumer/industries) process involve there in.
1. Brand name and the product.
2. Range of the product.
3. Identification mark or logo.
4. Tagline.
5. Labelling and packaging.
 6. Price of the product and basis of price fixation.
7. Selected channels of distribution and reasons thereof.
8. Decisions related to transportation and warehousing. State reasons.
9. Promotional techniques used and starting reasons for deciding the particular technique.
10. Grading and standardization.

COMPETENCY BASED QUESTIONS

https://drive.google.com/file/d/1CjvvErLBAJJnDpxZY45hGBrInYN2ow9z/view?usp=sharing