ICSE XII/MCQ Questions for Class 12 Economics Set-8 Sample Test,Sample questions

Question:
Agriculture sector contributed _______ percent to the GDP in 1990-91.

1.24.6

2. 34.9

3.40.5

4. 59.0


Question:
Balance of Trade =?

1.Export of Visible Items – Imports of Visible Items

2.Export of both Visible and Invisible Items – Import of both Visible and Invisible Items

3. Import of Visible Items – Export of Visible Items

4.None of the above


Question:
Balance of Trade means:

1. Capital Transaction

2. Import and export of goods

3.Total debit and credit

4. All the above


Question:
By exchange rate we mean:

1.How much local currency we have to pay for a foreign currency

2.How much of a foreign currency we have to pay for another foreign currency

3.The rate at which foreign currency is bought and sold

4. All of these


Question:
Foreign exchange is determined by:

1. Demand for foreign currency

2.Supply of foreign currency

3.Demand and supply in the foreign exchange market

4.None of the above


Question:
Foreign Exchange Rate is determined by:

1.Demand for foreign currency

2.Supply of foreign currency

3.Demand and supply in the foreign exchange market

4.None of these


Question:
How many industries have been reserved for the public sector under Industrial Policy Resolution, 1956?

1. 17

2.21

3.15

4.2


Question:
How much loan was provided by World Bank and IMF during the nineties to bail India out of the crisis?

1.$10 million

2. $10 billion

3.$7 billion

4.$20 billion


Question:
In how many sectors is the occupational structure of India is divided?

1.One

2.Two

3. Three

4. Four


Question:
In which of the following sectors is manufacturing activity included?

1.Primary

2.Tertiary

3.Secondary

4. All of these


Question:
In which of the following type of economy are resources owned privately and the main objective behind economic activities is profit-making?

1.Capitalist

2.Socialist

3. Mixed

4.Global


Question:
In which year did India adopt the economic reforms?

1. 1991

2.1993

3.1998

4. 2001


Question:
Measures to improve the adverse balance of payment includes:

1.Currency devaluation

2.Import substitution

3.Exchange control

4.All of the above


Question:
Structure of balance of payment includes which account:

1.Current account

2.Capital account

3. Both (a) and (b)

4. None of these.


Question:
The component(s) of Balance of Payment is/are:

1.Current Account

2. Capital Account

3.Both (a) and (b)

4. None of these


Question:
The foreign exchange rate is determined by:

1. Government

2. Bargaining

3.World Bank

4.Demand and Supply forces


Question:
The forms of foreign exchange market is/are:

1.Spot market

2. Forward market

3.Both (a) and (b)

4.None of these


Question:
The reason for the imbalance in the balance of payment is:

1.Natural Reasons

2. Economic Reasons

3.Political Reasons

4. All of these


Question:
Types of Foreign Exchange Market are:

1.Spot market

2. Forward market

3.Both (a) and (b)

4.None of these


Question:
What is another name for the service sector?

1.Tertiary

2.Primary

3.Secondary

4.Agriculture


Question:
What is needed to provide protection against natural calamities like floods, drought, locusts, thunderstorms, etc.?

1.Multiple cropping

2.Green revolution

3. Crop insurance

4. HYV


Question:
What is the tax or duty on imports called?

1.Tariff

2. Quota

3.Export

4. None of these


Question:
What was the growth rate of per capita income in India on the eve of Independence?

1. 0.9%

2.0.5%

3.1.2%

4. 3%


Question:
What was the life expectancy at birth in India on the eve of Independence?

1.44 years

2.50 years

3.60 years

4.All of these


Question:
What was the nature of the Indian economy on the eve of independence?

1.Stagnant

2. Backward

3. Underdeveloped

4.All of these


Question:
When did the Gulf Crisis take place?

1.1985

2.1990-91

3.1995

4. 1975


Question:
When was the National Development Council (NDC) set up as an adjunct to the Planning Commission?

1. 1950

2.1969

3. 1952

4. 1979


Question:
Where was the first iron and steel company established?

1.Kolkata

2.Jamshedpur

3. Patna

4. Ranchi


Question:
Which account is included in the composition of the Balance of Payments?

1. Current Account

2.Capital Account

3. Both (a) and (b)

4.None of the above


Question:
Which items are included in the Balance of Payments?

1.Visible Items

2. Invisible Items

3.Capital Transfers

4.All the above


Question:
Which items are included in the balance of trade?

1.Invisible Item

2.Capital Transfer

3. Visible Item

4.All of these


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

1.Agriculture

2.Services

3.Industries

4.All of these


Question:
Which of the following had been responsible for the heavy burden of the deal and its interest?

1.BOP deficit

2. BOP surplus

3.Equilibrium

4. None of these


Question:
Which of the following is the main objective of carrying out various economic activities?

1. Profit

2.Public welfare

3. Competition

4. Equality


Question:
Which of the following is true?

1.Fixed exchange rate is determined by the government

2.Flexible exchange rate is determined by market forces (demand and supply of foreign exchange)

3.Both (a) and (b)

4.None of the above


Question:
Which of the following steps promoted the growth of the economy as a whole by stimulating the development of industrial and tertiary sectors?

1. Independence

2.Planning

3. Colonial rule

4.Green revolution


Question:
Which of the following was the major occupation on the eve of independence?

1. Industry

2.Services

3.Agriculture

4.None of these


Question:
Which one is a demerit of the fixed exchange rate?

1. Ignores National Interests

2.Restricted Movement of Capital

3.Sudden Fluctuations in Exchange Rates

4. All the above


Question:
Which one is a demerit of the flexible exchange rate?

1.Bad Results of Low Rate

2.Uncertainty

3. Instability in Foreign Exchange

4. All the above


Question:
Which one is a kind of fixed exchange rate?

1.Gold Standard System of Exchange Rate

2. Bretton Woods System of Exchange Rate

3.Both (a) and (b)

4.None of the above


Question:
Which one is a merit of the fixed exchange rate?

1.Promotes Foreign Trade

2. Induces Foreign Capital

3. Increases Capital Formation

4.All the above


Question:
Which one is a merit of the flexible exchange rate?

1. Simple System

2.Continuous Adjustments

3. Improves Balance of Payments

4.All the above


Question:
Which one is a source of the demand for foreign exchange?

1. Imports of Goods and Services from Abroad

2. Investment in Foreign Nations

3.Gift Scheme to Foreign Nations

4.All the above


Question:
Which one is the feature of Balance of Payment?

1. Systematic Accounts

2. Fixed Time Period

3.Comprehensiveness

4. All the above


Question:
Which one is the invisible item of Balance of Payment?

1.Banking

2.Shipping

3. Communication

4.All of these


Question:
Which one is the item of Capital Account?

1.Government Transaction

2.Priva Transactions

3.Foreign Direct Investment

4. All the above


Question:
Which one is the item of the Current Account?

1. Import of Visible Items

2.Expenses of Tourists

3.Exports of Visible Items

4. All the above


Question:
Which one is the king of the exchange rate?

1.Fixed Exchange Rate

2.Flexible Exchange Rate

3.Both (a) and (b)

4.None of the above


Question:
Which one is the visible item of Balance of Payments?

1.Machine

2.Cloth

3.Cement

4.All of these


Question:
Why there was a need for economic reforms in India?

1.Due to fiscal deficit

2.Due to adverse BOP

3.Rise in prices

4.All of the above


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