QUESTION BANK.

CLASS XII.
SUBJECT:ECONOMICS
SESSION:2024-25

MACROECONOMICS
CHAPTER 5 : MONEY
1. Important terms :
a) Fiat money
b) Fiduciary money
c) Full bodied money
d) Credit money
e) Demand deposits
f) Term deposits
g) Bank money
h) High powered money
2. What is barter system? What are the drawbacks of barter system?
3. Describe the functions of money.
4. Who are the suppliers of money?
5. Define money supply. State and explain the different components of M1 measure of
money supply.
6. How does money overcome the main problem of exchange in the barter system?
7. Why are cash deposits of the Government and of the commercial banks with the
RBI not treated as a part of the money supply?

INDIAN ECONOMIC DEVELOPMENT

CHAPTER 1 : INDIAN ECONOMY ON THE EVE OF INDEPENDENCE
1. Name anyone prominent economics who estimated India's national income
during the colonial period.
2. Discuss the causes of India's agricultural stagnation during the colonial
period.
3. What was the state of industrial sector of the Indian economy on the eve of
independence?
4. Indicate the volume and direction of foreign trade of India at the time of
independence.
5. Write a few words on the infrastructure in the Indian economy at the time of
independence.
6. Discuss briefly the salient features of India's pre independence occupational
structure.
7. Comment upon the salient features of demographic conditions of India on the
eve of independence.
8. State the two-fold motive for the systematic destabilization of indigenous
Indian industries in the British era.
9. State the main features of Indian economy at the time of independence.

MACROECONOMICS
Chapter 6:Banking
1.Important terms:
● Primary and secondary deposits
● CRR,SLR,BANK RATE,REPO RATE,REVERSE REPO RATE,OPEN MARKET
OPERATION, MARGIN REQUIREMENT ,Credit multiplier

2.Explain the following functions of the central bank.

● Lender of last resort
● Banker to the government
● As Clearing house
● Banker's bank
● Currency authority function

3.Explain the role of the following in controlling credit in the economy by the central
bank.
● Bank rate and repo rate
● Reverse repo rate
● CRR and SLR
● Margin requirement
● Open market operations

3.’The commercial banks cannot print money but still can supply money in the
economy.’-support this statement showing valid numerical examples.
4.State the difference between a commercial bank bank.

INDIAN ECONOMIC DEVELOPMENT

Chp 2:
5 year plans of India

1.Explain The following concepts:

● Self sufficiency
● Equity
● Full employment

2. Describe the basic differences between socialist and capitalist economies.

3.How was the modernization goal of Indian planning associated with social equality?
4.Equity and equitable distribution are identical concepts-Defend and refute.

AGRICULTURE:
5. Discuss briefly, how institutional reforms (land reforms) have played a significant
role in transforming Indian agriculture.
6. Discuss the merits and demerits of the green revolution in the agricultural sector in
the Indian economy.
7. "Every coin has two sides – debate over farm subsidies is one such classic
example of the same."
Justify the given statement with two arguments each in favour of and against the
continuation of
farm subsidies.