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Economics M.C.Q (1 Marks)

Model Paper 4 · CBSE STD 12 Commerce (CBSE - English Medium). 10 questions.

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M.C.Q (1 Marks)

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10 questions · timed · auto-graded

MCQ 11 Mark
The demand for foreign exchange and the exchange rate has
Image
  • A
    Inverse relationship
  • B
    Indirect relationship
  • C
    Direct relationship
  • D
    Exponential relationship
Answer
(a) Inverse relationship
Explanation: More foreign currency is earned when exchange rate is lower and less foreign currency is earned when foreign exchange rate high.
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MCQ 21 Mark
The monetary policy generally targets to ensure ________.
  • A
    price stability in the economy
  • B
    stable foreign relation
  • C
    greater tax collections for the government
  • D
    employment generation in the country
Answer
(a) price stability in the economy
Explanation: price stability in the economy
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MCQ 31 Mark
Which of the following is not an example of flow variable?
  • A
    Number of births during a year
  • B
    National wealth
  • C
    Wheat produced during a year
  • D
    National Income
Answer
(b) National wealth
Explanation: National wealth
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MCQ 41 Mark
According to the theory of Keynesian Economics, the value of Average Propensity to Consume can never be ________.
  • A
    unity (1)
  • B
    Less than one
  • C
    More than one
  • D
    zero
Answer
(d) zero
Explanation: APC can never be zero.
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MCQ 51 Mark
A situation when AS = AD along with fuller utilisation of resources in the economy is called:
  • A
    equilibrium without excess capacity
  • B
    underemployment equilibrium
  • C
    deflationary gap
  • D
    inflationary gap
Answer
(a) equilibrium without excess capacity
Explanation: When AD = AS, all the producers wish to produce during the year is exactly equal to what the buyers wish to spend on the purchase of goods and services during the year, so, there is no excess capacity.
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MCQ 71 Mark
Before the Bretton Woods standard system, exchange rates were pegged against ________.
  • A
    Either gold and silver
  • B
    any precious metal
  • C
    gold
  • D
    silver
Answer
(c) gold
Explanation: Before the Bretton Woods standard, gold standard was followed. Under that system of exchange, rates were fixed or tied against US Dollar.
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MCQ 91 Mark
If the total deposits created by commercial banks is ₹ 10,000 crores and legal reserve requirements is 40%, then amount of initial deposits will be ________.
  • A
    ₹ 4,000 crores
  • B
    ₹ 3,000 crores
  • C
    ₹ 2,000 crores
  • D
    ₹ 14,000 crores
Answer
(a) ₹ 4,000 crores
Explanation: ₹ 4,000 crores
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MCQ 101 Mark
Statement I: Since the official reserve transactions are made to bridge the gap in the BoP, they are seen as the accommodating transactions in the BoP.
Statement II: Official reserve transactions are more relevant under a regime of fixed exchange rates than when exchange rates are floating.
  • A
    Statement II is true and statement I is false.
  • B
    Both the statements are false.
  • C
    Both the statements are true.
  • D
    Statement I is true and statement II is false.
Answer
(c) Both the statements are true
Explanation: Both the statements are true.
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M.C.Q (1 Marks) - Economics STD 12 Commerce Questions - Vidyadip