REVISION TEST PAPER-1 December 30, 1899

REVISION TEST PAPER-1

Class-12

Economics

SET-C

Topic: - National Income/ Money & Banking

Time Allowed: 1 Hr. Maximum Marks: 35

General Instructions:
Attempt all questions.

Read all questions carefully.

Section A

1 State true or false:

[1]
If Nominal GNP is₹ 1,200 and Real GNP is ₹ 500, then GNP Deflator will be 200.

2 T.V., radio, washing machine, etc. are examples of: [1]

a) durable consumer goods b) capital goods

c) nondurable consumer goods d) single - use consumer goods

3 [1]

Match the following on the basis of table given above:

a) (a) - (ii); (b) - (i); (c) - (iii); (d) - (iv) b) (a) - (ii); (b) - (iii); (c) - (i); (d) - (iv)

c) (a) - (ii); (b) - (iii); (c) - (iv); (d) - (i) d) (a) - (i); (b) - (iii); (c) - (ii); (d) - (iv)

Eduhub Commerce Classes, H.No. A-7, Ramanand Colony, Gufa Mandir Road, Nayapura,
1
Lalghati, Bhopal
 REVISION TEST PAPER-1 December 30, 1899

4 There are two statements given below, about the effect of a rise in the general price level of an economy. [1]
Which of these is/are true?

Statement -I: It will lead to a rise in the value of money.

Statement -II: It will lead to a rise in the demand for money.

a) only Statement (I) b) only Statement (II)

c) Both Statement (I & II) d) Neither Statement (I & II)

OR

Choose the correct statement from given below.

Statement -I: Commercial banks create credit out of primary deposits.

Statement -II: Money multiplier is directly related to legal reserve ratio.

Statement -III: Central bank of the country is not authorized to maintain foreign exchange reserve.

Statement -IV: Central bank create credit by issuing currency in economy

a) Statement -I & Statement -II b) Statement -II & Statement -IV

c) Statement -I only d) Statement -IV only

5 Assertion (A): Currency held by public is a monetary liability of Reserve Bank of India (RBI). [1]

Reason (R): RBI control credit, while Commercial Banks create credit.

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.

Section B

6 “Credit multiplier and reserve ratio are inversely related”. Comment [3]

OR

Explain different forms of money.

(A) Fiat money (B) Transaction money (C) Plastic money

7 How you treat the following transactions while estimating National Income. [3]

Eduhub Commerce Classes, H.No. A-7, Ramanand Colony, Gufa Mandir Road, Nayapura,
2
Lalghati, Bhopal
 REVISION TEST PAPER-1 December 30, 1899

1. Milk purchased by a tea stall

2. Bus purchased by a school

3. Juice purchased by a student from the school canteen

Section C

8 Define Compensation of Employees. State its components. [4]

9 How repo transactions help to combat with the value of money? [4]

10 [4]

Explain the impact of given image of income inequalities on GDP and welfare

OR

How national income differ from domestic income.

Section D

11 1. How FIFA differ from net exports. [2] [6]

2. Calculate NNP❑FC from the following data [4]

12 How money exchange expands market reach? (Use various functions of money to explain the concept) [6]

Eduhub Commerce Classes, H.No. A-7, Ramanand Colony, Gufa Mandir Road, Nayapura,
3
Lalghati, Bhopal