ICSE XII/MCQ Questions for Class 12 Economics Set-2 Sample Test,Sample questions

Question:
“Money is what money does.” Who said it?

1.Hartley Withers

2. Hawtrey

3.Thomas

4. Keynes


Question:
Demand deposits include

1.Saving account deposits and fixed deposits

2. Saving account deposits and current account deposits

3.Current account deposits and fixed deposits

4.All type of deposits


Question:
From the following which method is used for measuring national income:

1. Production method

2.Income method

3.Expenditure method

4.All of the above.


Question:
Giving permission to withdraw money by an amount more than deposited to is known as _________

1. Advance

2.Overdraft

3.Loan

4. None of these


Question:
High Powered Money includes:

1.C + DD + OD

2. C + R + OD

3.C + R + TD

4. C + DD + TD


Question:
If for a country net factor income from abroad is negative then:

1. GDP < GNP

2.GDP > GNP

3.GDP ≥ GNP

4. GDP = GNP


Question:
In order to encourage investment in the economy, the Central Bank may ________

1.Reduce Cash Reserve Ratio

2. Increase Cash Reserve Ratio

3.Sell Government securities in the open market

4. Increase Bank Rate


Question:
Indian Monetary System is based on ________

1. Paper Standard

2. Metallic Standard

3. Gold Standard

4.Credit Money Standard


Question:
Institution that accepts deposits for lending purpose is known as __________

1.Commercial Bank

2.Central Bank

3.Government

4. Public


Question:
Macro-economics is the study of:

1.Principle or Theories of national income

2. Consumer’s theory

3.Production theory

4. None of these.


Question:
Out of the following which is not a flow:

1. Capital

2. Income

3. Investment

4. Depreciation.


Question:
Production enterprises are divided in:

1.Two sectors

2.Three sectors

3.Four sectors

4. Five sectors.


Question:
The central bank can increase the availability of credit by:

1.Rasing repo rate

2. Raising reverse repo rate

3.Buying government securities

4. Selling government securities


Question:
The market value of all final goods and services produced in an economy over a year is called :

1.Gross National Product

2. National Income

3.Gross Domestic Product

4.Net National Product


Question:
The ratio of total deposits that a commercial bank has to keep with RBI is called:

1. Statutory liquidity ratio

2. Deposit ratio

3.Cash reserve ratio

4.Legal reserve ratio


Question:
To include the value of goods or services more than one time while calculating National Income is called :

1. Single Counting

2. Double Counting

3. Multiple Counting

4.None of these


Question:
Total national income divided by total population is known as:

1.Private income

2.Personal income

3. Personal spendable income

4. Per capita income.


Question:
What are the advantages of the Barter System?

1.Simple System

2.More Mutual Co-operation

3.No Economic Disparities

4. All the above


Question:
What are the alternative measures of money supply in India?

1. M1

2. M2

3. M3 and M4

4.All of these


Question:
What are the necessary conditions of the Barter System?

1.Limited Needs

2. Limited Exchange Area

3.Economically Backward Society

4. All the above


Question:
What is the consumption of fixed capital called?

1.Capital formation

2. Depreciation

3. Investment

4.All of these


Question:
What is the defect of the barter system?

1. Lack of double coincidence of wants

2.Difficulty in the measurement of value

3. Difficulty in store of value

4.All of these


Question:
When was the minimum reserve system started in India?

1.1947

2. 1948

3.1951

4. 1957


Question:
Which among the following is the near money?

1. Bonds

2. Insurance policy

3.Securities

4. All of these


Question:
Which is the correct order of money evolution?

1. Commodity Money, Paper Money, Metal Money

2. Commodity Money, Metal Money, Paper Money, Credit Money

3.Credit Money, Metal Money, Paper Money

4. None of the above


Question:
Which is the most liquid measure of the money supply?

1.M4

2. M3

3.M2

4. M1


Question:
Which method is adopted in measuring National Income?

1. Production Method

2.Income Method

3.Expenditure Method

4.All of these


Question:
Which of the following is correct?

1.Disposable Income = Personal Income – Direct Taxes

2.Disposable Income = Private Income – Direct Taxes

3.Disposable Income = Personal Income – Indirect Taxes

4.Disposable Income = Private Income – Indirect Taxes


Question:
Which of the following is included in the primary sector:

1. Land

2. Forest

3. Mines

4.All of the above.


Question:
Which of the following is not included in the calculation of Gross National Product?

1. Purchase and Sale of Old commodities

2. Intermediate Commodities

3.(a) and (b) both

4. None of the above


Question:
Which of the following is the apex bank of India?

1.RBI

2. SBI

3.SBP

4.PNB


Question:
Which of the following is the credit money?

1.Cheque and draft

2.Promissory note

3.Exchange note

4. All of these


Question:
Which of the following is the feature of money?

1. General acceptability

2. Homogeneous unit

3.Liquid asset

4.All of these


Question:
Which of the following is the function of a Central bank?

1. Issue of notes

2. Banker to the Government and Banks

3. Supply and control of money

4. All of these


Question:
Which of the following is the function of a commercial bank?

1. Accepting deposits

2. Credit creation

3. Agency function

4.All of these


Question:
Which of the following is the method of measuring National Income?

1. Income method

2. Product method

3. Expenditure method

4. All of these


Question:
Which of the following is the narrow measure of the money supply?

1. M2

2.M3

3. M1

4. M4


Question:
Which one is a component of profit?

1.Dividend

2. Undistributed Profit

3.Corporate Profit Tax

4.All of these


Question:
Which one is included in National Income?

1.Rent, Wage, Interest

2.Rent, Wage, Salary

3.Rent, Profit, Interest

4.Rent, Wage, Salary, Interest, Profit


Question:
Which one is included in National Income?

1.Transfer Earnings

2.Sale proceeds of Shares and Bonds

3. Black Money

4.None of the Above


Question:
Which one is included in Primary Sector?

1. Land

2. Forest

3.Mining

4. All these


Question:
Which one is included in the calculation of National Income?

1. New Final Goods and Services

2. Earned Income of Indian Companies in Abroad

3. Expenses made by Foreign Tourists in the country

4.All the above


Question:
Which one is included in the primary function of money?

1.Medium of Exchange

2. Measure of Value

3.Both (a) and (b)

4.Store of Value


Question:
Which one is included in the secondary function of money?

1.To make Deferred Payments

2. Store of Value

3.Transfer of Value

4.All of these


Question:
Which one is the difficulty of the Barter System?

1. Lack of Double Coincidence

2. Difficulty of Division of the Goods

3.Lack of General Acceptable Measure of Value

4. All the above


Question:
Which one is the limitation of Macro Economics?

1. Collective Economic Paradox

2. Ignores Individual Units

3.Both (a) and (b)

4.None of these


Question:
Which one of the following services are included in the Secondary Sector?

1. Insurance

2. Manufacturing

3.Trade

4. Banking


Question:
Which sector is included in an economy?

1.Primary

2.Secondary

3.Tertiary

4. All of these


Question:
Who circulates all mint and one rupee not in India?

1. Ministry of Finance

2.RBI

3. Ministry of External Affairs

4. State Government


Question:
Who has the right of note issue?

1. Central Bank

2.Commercial Bank

3. Government

4.Co-operative Bank


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