CBSE Class 12 Macro Economics Online Mock Test (First Term) For Practice Free
CBSE Class 12 Macro Economics Online Mock Test (First Term) For Practice purpose is available here on this website. It is prepared by the experts of educationsingh.com to help students. While preparing these, the CBSE Syllabus was given the priority. Hence those students who prefer to practice these online method tests will be able to get good marks very easily.
CBSE Board Class 12 Mock Test Question Paper
CBSE Board Class 12 Mock Test Question Paper aids in the assessment. By doing this students get to know whether their understanding in the subject is enough or not. These question papers are developed by keeping in mind the level of real board questions.
PRACTICE PAPER, 2020-21
Class: XII SUBJECT: ECONOMICS (030)
Time Allowed: 1 Hrs. Maximum Marks: 40
General Instructions:
1 This question paper contains Macro Economics (40 marks):
2 Marks for questions are indicated against each question.
3 Question No. 1-37 and Question No. 37-40 (including one Case Based Questions) are 1-mark questions and are to be answered in one word/sentence
1. One of the other two components of government Revenue in the budget are:
a. Revenue Expenditure
b. Expenditure receipts
c. Capital receipts
d. Budget receipts
2. One of the functions of commercial banks among the following is:
a. Advancing issues
b. Advancing foreign exchange
c. Advancing Loans
d. Advancing securities
3. Deficit financing is
a. Taking loans
b. Printing more currency notes
c. Not paying interest on loans
d. None of them
4. Fiscal deficit is equal to borrowings. It is:
a. False
b. True
c. Can’t say
d. Insufficient information
5. Disequilibrium in the balance of payments leads to:
a. decrease in official reserves with RBI
b. none of these
c. increase in official reserves with RBI
d. both increase and decrease in official reserves with RBI
6 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.
7 Balance of Payments of an economy records_____________ for a fiscal year.
. (Fill up the blank with correct alternative)
a) income and expenditure of the government
b) inflow and outflow of funds of the government
c) inflow and outflow of foreign exchange to/from the economy
d) inflow and outflow of loans to/from the rest of the world
8 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
9 Identify which of the following is not an example of ‘invisible item’ under Current Account of the
Balance of Payments transactions: (Choose the correct alternative)
a) Air and sea transport
b) Postal and courier services
c) Education-related travel
d) Merchandise linked transactions
10 Read the following statements carefully and choose the correct alternative from the following:
Statement 1 – Demonetization was the step taken by the Government of India in order to tackle
the problems of corruption, black money, terrorism and circulation of fake currency in the Indian
Economy.
Statement 2 – Demonetization has ensured improved tax compliance in India over the period of
time.
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
11 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
CBSE Class 12 Macro Economics Online Mock Test (First Term) For Practice Free
12 Two friends Mira and Sindhu were discussing the exchange rate systems.
‘Under this system, the exchange rates are determined by the market forces of demand and
supply. However, deliberate efforts are made by the competent authority to keep the exchange
rates within a specific range’.
The above-mentioned statement was given by Sindhu, identify the type of exchange rate system
was she talking about?
a) Fixed Exchange Rate
b) Floating Exchange Rate
c) Managed Floating Exchange Rate
d) Managed Fixed Exchange Rate
13 Read the following statements carefully and choose the correct alternative from the following:
Statement 1 – Public goods are those goods and services that are collectively consumed by the
public.
Statement 2 – Public goods are excludable and rivalrous in nature.
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
14 Under the Balance of Payments structure of a nation, the two main categories of accounts for
the classification of the transactions are___ and ___. (Fill up the blank with correct alternative)
i. current account
ii. unilateral transfer account
iii. capital account
iv. loan account
Identify the correct alternatives from the following:
Alternatives:
a) i and ii
b) i and iii
c) iii and iv
d) iv and i
15 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
16 The Government of India has decided to vaccinate the adult population of India (with
Covaxin/Covishield), without any charge. This would be categorized as ____________
(Fill in the blank with correct alternative)
a) revenue nature income
b) capital nature expenditure
c) revenue nature expenditure
d) capital nature income
17 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) ₹ 100
c) not defined
d) ₹ 120
18 Read the following statements carefully and choose the correct alternatives given below:
Statement 1 – Subsidies do not add any burden on the financial health of a nation.
Statement 2 – Complete removal of subsidies may violate the aim of equitable distribution of
income.
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
19 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
20 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 directly 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
CBSE Class 12 Macro Economics Online Mock Test (First Term) For Practice Free
21 Read the following statements -Assertion (A) and Reason(R), choose one of the correct
alternatives given below:
Assertion (A): Trade of invisible items between two nations is a part of capital account of
Balance of Payment
Reason(R): Transactions that affect the asset-liability status of a country in relation to the rest of
the world are known as Capital Account transaction.
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.
22 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
23 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
24 Suppose that the Balance of Trade (BOT) of a nation, exhibits a surplus of ₹ 20,000 crores. The
import of merchandise of the nation is half of the exports of merchandise to the rest of the
world.
The value of exports would be ₹______ crores. (Fill up the blank with correct
alternative)
a) 30,000
b) 40,000
c) 24,000
d) 35,000
25 Read the following statements -Assertion (A) and Reason(R), Choose one of the correct
alternatives given below:
Assertion (A): If the receipts and payments on the current account are equal to each other, it
depicts a situation of Current Account Surplus.
Reason(R): A surplus current account means that the nation is a lender to other countries and a
deficit current account means that the nation is a borrower from other countries.
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.
26. What is the fiscal year in India for which government budget is prepared?
a. None of these
b. January-December
c. July-June
d. April-March
27 . RBI announced the guidelines to issue licenses to new banks of the private sector on:
a. None of these
b. April 1, 1999
c. January 22, 1993
d. March 15, 1995
28. Cause of BoP imbalance relates to:
a. None of these
b. both autonomous and accommodating items
c. autonomous items
d. accommodating items
29. Fiscal deficit equals ________.
a. None of these
b. Primary deficit + Interest payments
c. Primary deficit – Interest payments
d. Total budget expenditure – Total budget receipts
CBSE Class 12 Macro Economics Online Mock Test (First Term) For Practice Free
30. Assertion (A): Export and import of services such as banking, insurance, shipping are not included in the balance of trade.
Reason (R): Expenditure by tourists is included in the balance of trade.
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.
31. Which of the following is not a non-tax revenue receipt?
a. Disinvestment
b. Goods and Services tax
c. Dividends and profits
d. External grants
32 The primary deficit is the borrowing requirements of the government for making ________. (choose the correct alternative)
a. Some specific payments
b. All types of payments
c. Other than interest payments
d. Interest payments
33. Assertion (A): Statutory liquidity ratio is reduced to increase the flow of credit in the economy.
Reason (R): The rate of statutory liquidity ratio is fixed by the central bank which is a fixed percentage of assets in the form of cash or other liquid assets.
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.
34. Assertion (A): The government does not make revenues out of Escheat.
Reason (R): There are no claimants of such properties under escheat.
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.
35. Which of the following is not a method of credit control adopted by central bank?
a. Statutory Liquidity Ratio
b. Tax
c. Open Market Operations
d. Bank Rate
36. When balance of payments balances:
i. current account + capital account = zero
ii. official reserves account is a part of current account
iii. official reserves account is a part of capital account
a. Only iii
b. Only i
c. Both i and iii
d. Only ii
Question. 37 to 39 are based on the given text. Read the text carefully and answer the
questions:
Functions of money are basically classified into two categories: primary functions ad secondary
functions. Primary functions include the medium of exchange and measure of value. Secondary
functions include the standard of deferred payments, store of value, and transfer of value.
W.R.L. Coulborn and Paul Einzig have classified all the functions of money into two broad categories,
static functions, and dynamic functions. The static functions of money refer to conventional functions
of money. These basically include the primary ad secondary functions of money: medium of
exchange, a measure of value, the standard of deferred payments, store of value, and transfer of value.
Dynamic functions of money refer to the functions of money which impart stability to the economy ad
push an economy to a higher level of growth and development.
37. Introduction of money has separated the act of sale and purchase is a ________ function of money.
a. secondary
b. all of these
c. primary
d. teritary
38. ________ functions helps to regulate the economic system.
a. demand
b. static
c. dynamic
d. None of these
39. Rupees in India, dollars in USA, euro in Europe all these dictates ________ function of money.
a. unit of value
b. Store of Value
c. medium of exchange
d. Standard of Deferred Payments
40. Government all over the world have tried to control the recession is ________ function of money.
a. demand
b. dynamic
c. static
d. all of these