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Xii Mock Test

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21 views5 pages

Xii Mock Test

Uploaded by

aryanmadnani50
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MOCK TEST – (2023-24)

CLASS: XII; SUBJECT: ECONOMICS


TEACHER’S NAME: HANISHA ARORA QUARTER: Ist(APRIL-JUNE)

1. Which of the following activities is not included in the calculation of the national income of a
country?
a. A maid working for a family on a full-time basis
b. A lawyer conducting their law practice
c. A housewife performing housework chores
d. A dispensary rendering medical services
2. Which of the following statements reflects the true meaning of gross investment?
a. Gross investment is the total of net investment and depreciation
b. Gross investment is the difference between the net investment and depreciation
c. Both a and b are correct
d. Both a and b are incorrect
3. The reduction in the value of Plant and Machinery during the process of manufacturing is known
as
a. Net National Product
b. Gross Domestic Product
c. Depreciation
d. Consumption
4. Assertion(A): Currency held by the public is a monetary liability of the central bank
Reason(R): Central bank controls credit, whereas commercial banks create credit with the currency
held by the public.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true
5. “The value of all goods and services can be expressed in monetary units.” On the basis of the given
statement, identify the function performed by money:
a) Medium of exchange b) Store of Value
c) Unit of account d) Means of standard of deferred payments
6. Which of the following is not a flow?
Income b) Capital c) Depreciation d) Investment
7. Assertion (A): Loans are never offered in cash by banking institutions.
Reason (R): When loans are offered demand deposits of the banks are raised by the same amount.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
8. Assertion (A): Demand deposits include saving account deposits and current account
deposits.
Reason (R): Cheque drawn on saving account deposits and current account deposits are payable
by banks on demand from the account holder.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.

9. is responsible for issuing Rs.1 currency note in India. (Fill


in the blank by choosing the correct alternative)
(A) Reserve Bank of India

(B) Ministry of Commerce


(C) Ministry of Finance
(D) NITI Aayog
10. If in an economy the value of Net Factor Income from Abroad is ₹ 200 crores
and the value of Factor Income to Abroad is ₹ 40 crores. Identify the value of
Factor Income from Abroad. (Choose the correct alternative)
a) ₹ 200 crores b) ₹ 160 crores
c) ₹ 240 crores d) ₹ 180 crores
11) Explain how ‘Non-Monetary Exchanges’ impact the use of Gross Domestic Product as an index of
economic welfare.(3)
OR
Giving valid reasons, classify the following into stock and flow variables :
(i) Production of wheat during the year 2020 21
(ii) National Income of Indian Economy during the financial year 2020 21
12. As per the following news published in The Economic Times on 26th December, 2021: ‘Reserve
Bank of India has sold government securities worth ₹ 8,710 crore in the secondary market, over the
last four weeks, to drain out excessive liquidity’. Identify the likely cause and the consequences
behind, this type of action plan of the Reserve Bank.
13. Read the following text carefully, discuss briefly the relevant function of the Central Bank,
indicated : Recently, Reserve Bank of India (RBI) conducted a statutory inspection for supervisory
evaluation against a Commercial Bank. The commercial bank was imposed with stringent penalties,
owing to deficiencies in regulatory compliances. As per the Central Bank, the inspection revealed
non-compliances vis-à-vis different directions issued by RBI, on the following fronts:
i. ATM Card frauds
ii. Ensuring integrity and quality of data
iii. Loans to small borrowers (adapted/moderated -livemint.com)
14 Giving reason, explain how the following should be treated in estimation of national income:
(A) Expenditure by a firm on payment of fees to a chartered accountant
(B) Payment of corporate tax by a firm
(C) Purchase of refrigerator by a firm for own use.
OR
Giving valid reasons explain which of the following will not be included in estimation of National
Income of India?
(A) Purchase of shares of X. Ltd. by an investor in the National Stock Exchange.
(B) Salaries paid by the French Embassy, New Delhi to the local workers of the housekeeping
department.
(C) Compensation paid by the Government of India to the victims of floods

15. Explain how the repo rate can be helpful in controlling credit creation. [4]
OR
Reserve Ratio and Credit Creation are inversely related.’ Do you agree with the given
statement? Justify your answer with a suitable numerical example.
16. An increase of Rs. 250 crore in investment in an Economy, resulted in total
increase in income of rs.1,000 crore. Calculate the following: (4+2)
. a. Value of investment multiplier
. b. Change in savings
. c. change in consumption expenditure
d. Marginal propensity to consume. (6)
17. (i)Calculate GNPFC

Particulars ₹ in
crores
(i) Net change in stock 50
(ii) Government final consumption expenditure 100
(iii) Net current transfer to abroad 30
(iv) Gross domestic fixed capital formation 200
(v) Private final consumption expenditure 500
(vi) Net imports 40
(vii Depreciation 70
)
(viii Net factor income to abroad (-)10
)
(ix) Net indirect taxes 120
(x) Net capital transfer to abroad 25

(ii) Define the following terms


a) Mixed income
b) Operating surplus
c) NFIA

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