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- Answered
- Review
- Question 1 of 60
1. Question
Category: NCERTWhich of the following is a non-tax revenue?
Correctdividends
Incorrectdividends
- Question 2 of 60
2. Question
Category: NCERTThe primary deficit in a government budget is
CorrectFiscal deficit minus interest payment
IncorrectFiscal deficit minus interest payment
- Question 3 of 60
3. Question
Category: NCERTDirect tax is called direct because it is collected from the
Correctthe income earners
Incorrectthe income earners
- Question 4 of 60
4. Question
Category: NCERTThe primary deficit in a government budget will be zero, when
CorrectFiscal deficit is equal to interest payment
IncorrectFiscal deficit is equal to interest payment
- Question 5 of 60
5. Question
Category: NCERTWhich of the following is an indirect tax?
CorrectCustom duty
IncorrectCustom duty
- Question 6 of 60
6. Question
Category: NCERTWhich one of the following is a combination of direct taxes?
CorrectWealth tax and income tax
IncorrectWealth tax and income tax
- Question 7 of 60
7. Question
Category: NCERTWhich of the following statement is true?
CorrectBorrowings by the government represent a situation of fiscal deficit.
IncorrectBorrowings by the government represent a situation of fiscal deficit.
- Question 8 of 60
8. Question
Category: NCERTWhich of the following is not a revenue receipt?
CorrectRecovery of loans
IncorrectRecovery of loans
- Question 9 of 60
9. Question
Category: NCERTPrimary deficit is borrowing requirements of the government for payment(s)
Correctother than interest
Incorrectother than interest
- Question 10 of 60
10. Question
Category: NCERTWhich of the following sources of receipts in the government budget increases its liabilities?
CorrectBorrowings
IncorrectBorrowings
- Question 11 of 60
11. Question
Category: NCERTBorrowing in the government budget is
Correctfiscal deficit
Incorrectfiscal deficit
- Question 12 of 60
12. Question
Category: NCERTWhich of the following is a non-tax revenue?
CorrectDividends
IncorrectDividends
- Question 13 of 60
13. Question
Category: NCERTThe primary deficit in a government budget is
CorrectFiscal deficit minus interest payment
IncorrectFiscal deficit minus interest payment
- Question 14 of 60
14. Question
Category: NCERTDirect tax is called direct because it is collected from the
Correctthe income earners
Incorrectthe income earners
- Question 15 of 60
15. Question
Category: NCERTThe primary deficit in a government budget will be zero, when
CorrectFiscal deficit is equal to interest payment
IncorrectFiscal deficit is equal to interest payment
- Question 16 of 60
16. Question
Category: NCERTWhich one of these is a revenue expenditure?
CorrectSubsidies
IncorrectSubsidies
- Question 17 of 60
17. Question
Category: NCERTWhich one of the following is a combination of direct taxes?
CorrectWealth tax and income tax
IncorrectWealth tax and income tax
- Question 18 of 60
18. Question
Category: NCERTWhich of the following statement is true?
CorrectBorrowings by the government represent a situation of fiscal deficit.
IncorrectBorrowings by the government represent a situation of fiscal deficit.
- Question 19 of 60
19. Question
Category: NCERTRevenue deficit is the excess of capital received over the revenue receipts
CorrectRecovery of loans
IncorrectRecovery of loans
- Question 20 of 60
20. Question
Category: NCERTPrimary deficit is borrowing requirements of the government for payment(s)
Correctother than interest
Incorrectother than interest
- Question 21 of 60
21. Question
Category: NCERTWhich of the following sources of receipts in the government budget increases its liabilities?
CorrectBorrowings
IncorrectBorrowings
- Question 22 of 60
22. Question
Category: NCERTWhich of the following is an indirect tax?
CorrectCustom duty
IncorrectCustom duty
- Question 23 of 60
23. Question
Category: NCERTBorrowing in the government budget is
Correctfiscal deficit
Incorrectfiscal deficit
- Question 24 of 60
24. Question
Category: NCERTWhat is known as the study of individual units?
CorrectMicroeconomics
IncorrectMicroeconomics
- Question 25 of 60
25. Question
Category: NCERTThe study of aggregates is known as
CorrectMacroeconomics
IncorrectMacroeconomics
- Question 26 of 60
26. Question
Category: NCERTWhat is the name of the book written by J.M. Keynes?
CorrectThe General Theory of Employment, Interest, and Money
IncorrectThe General Theory of Employment, Interest, and Money
- Question 27 of 60
27. Question
Category: NCERTWhen was the famous book of Prof. Keynes published?
Correct1936
Incorrect1936
- Question 28 of 60
28. Question
Category: NCERTWhen did the great depression occur?
Correct1929-30
Incorrect1929-30
- Question 29 of 60
29. Question
Category: NCERTWho is known as the father of modern macroeconomics?
CorrectJ. M. Keynes
His most influential book, The General Theory of Employment, Interest and Money (1936), challenged classical economics by arguing that aggregate demand—not just supply—drives economic performance. Keynes advocated for active government intervention, especially fiscal policy, to manage economic cycles and reduce unemployment.
IncorrectJ. M. Keynes
His most influential book, The General Theory of Employment, Interest and Money (1936), challenged classical economics by arguing that aggregate demand—not just supply—drives economic performance. Keynes advocated for active government intervention, especially fiscal policy, to manage economic cycles and reduce unemployment.
- Question 30 of 60
30. Question
Category: NCERTMr. Skund Kumar wants to study the national income. Which branch of economics will he have to study?
CorrectMacroeconomics
IncorrectMacroeconomics
- Question 31 of 60
31. Question
Category: NCERT_______ is the primary function of money.
CorrectMedium of exchange
IncorrectMedium of exchange
- Question 32 of 60
32. Question
Category: NCERTInitial deposits made by the people from their own resources are called
Correctprimary deposits
Incorrectprimary deposits
- Question 33 of 60
33. Question
Category: NCERTThe monetary policy generally targets to ensure _______
CorrectPrice stability in the economy
IncorrectPrice stability in the economy
- Question 34 of 60
34. Question
Category: NCERTIn order to encourage investment in the economy, the Central Bank may _______
CorrectReduce Cash Reserve Ratio
IncorrectReduce Cash Reserve Ratio
- Question 35 of 60
35. Question
Category: NCERTBanks are able to create credit many times more than initial deposits through
Correctsecondary deposits
Incorrectsecondary deposits
- Question 36 of 60
36. Question
Category: NCERTThe creation is called credit creation.
Correctsecondary deposits
Incorrectsecondary deposits
- Question 37 of 60
37. Question
Category: NCERTThe ratio of total deposit that a commercial bank has to keep with the Reserve Bank of India is called
CorrectCash Reserve Ratio
IncorrectCash Reserve Ratio
- Question 38 of 60
38. Question
Category: NCERTCredit creation by the commercial bank is determined by
Correctall of the above
Incorrectall of the above
- Question 39 of 60
39. Question
Category: NCERT______ is the rate of interest charged by the central bank on loans given to the commercial bank.
CorrectBank Rate
IncorrectBank Rate
- Question 40 of 60
40. Question
Category: NCERT_______ is the main function of Central Bank.
CorrectNotes issue
IncorrectNotes issue
- Question 41 of 60
41. Question
Category: NCERTDepreciation of fixed capital assets refers to
CorrectNormal wear and tear and foreseen obsolescence
Foreseen obsolescence refers to the expected decline in the value of an asset due to factors like technological advancement, wear and tear, or changes in consumer preferences—anticipated at the time of purchase.
IncorrectNormal wear and tear and foreseen obsolescence
Foreseen obsolescence refers to the expected decline in the value of an asset due to factors like technological advancement, wear and tear, or changes in consumer preferences—anticipated at the time of purchase.
- Question 42 of 60
42. Question
Category: NCERTNational income is the sum of factor income accruing to
CorrectResidents
IncorrectResidents
- Question 43 of 60
43. Question
Category: NCERTGNP at MP =
CorrectGDP at MP + Net factor income from abroad
IncorrectGDP at MP + Net factor income from abroad
- Question 44 of 60
44. Question
Category: NCERTNDP at MP =
CorrectGDP at MP – Depreciation
IncorrectGDP at MP – Depreciation
- Question 45 of 60
45. Question
Category: NCERTNNP at MP =
CorrectAll of these
IncorrectAll of these
- Question 46 of 60
46. Question
Category: NCERTGDP at FC =
CorrectGDP at MP – Net indirect taxes
IncorrectGDP at MP – Net indirect taxes
- Question 47 of 60
47. Question
Category: NCERTNDP at FC =
CorrectGDP at FC – Depreciation
IncorrectGDP at FC – Depreciation
- Question 48 of 60
48. Question
Category: NCERTNNP at FC =
CorrectAll of these
IncorrectAll of these
- Question 49 of 60
49. Question
Category: NCERTAccounting of National Income at constant prices is known as
CorrectReal income
IncorrectReal income
- Question 50 of 60
50. Question
Category: NCERTWhich of the following items are excluded from GNP measurement?
CorrectAll of these
IncorrectAll of these
- Question 51 of 60
51. Question
Category: NCERTOther things remaining unchanged, when in a country the price of foreign currency rises, national income is:
CorrectLikely to rise
IncorrectLikely to rise
- Question 52 of 60
52. Question
Category: NCERTForeign exchange transactions dependent on other foreign exchange transactions are called:
CorrectAccommodating transactions
IncorrectAccommodating transactions
- Question 53 of 60
53. Question
Category: NCERTOther things remaining the same, when in a country the market price of foreign currency falls, national income is likely:
Correctto fall
The appreciation of a currency tends to make exports more expensive for foreign buyers and imports cheaper for domestic consumers. As a result:
- Exports may decline (hurting domestic production and income),
- Imports may rise (reducing demand for domestic goods).
So, the net effect is that national income is likely to fall due to reduced net exports.
Incorrectto fall
The appreciation of a currency tends to make exports more expensive for foreign buyers and imports cheaper for domestic consumers. As a result:
- Exports may decline (hurting domestic production and income),
- Imports may rise (reducing demand for domestic goods).
So, the net effect is that national income is likely to fall due to reduced net exports.
- Question 54 of 60
54. Question
Category: NCERTForeign exchange transactions which are independent of other transactions in the Balance of Payments Account are called:
CorrectAutonomous transactions
Autonomous Transactions: Also called “Above-the-line” items, occur independently of the BoP status they happen whether there’s a deficit or surplus. Include exports, imports, foreign investments, and remittances, etc.
Accommodating Transactions: Also called “Below-the-line” items, triggered in response to a BoP deficit or surplus. Typically involve official reserve transactions, like borrowing from the IMF or using forex reserves.
IncorrectAutonomous transactions
Autonomous Transactions: Also called “Above-the-line” items, occur independently of the BoP status they happen whether there’s a deficit or surplus. Include exports, imports, foreign investments, and remittances, etc.
Accommodating Transactions: Also called “Below-the-line” items, triggered in response to a BoP deficit or surplus. Typically involve official reserve transactions, like borrowing from the IMF or using forex reserves.
- Question 55 of 60
55. Question
Category: NCERTWhat is the cause of the devaluation of any country’s currency?
CorrectAll of these
IncorrectAll of these
- Question 56 of 60
56. Question
Category: NCERTThe operation of daily nature in the foreign exchange market is known as
CorrectSpot market
IncorrectSpot market
- Question 57 of 60
57. Question
Category: NCERTThe operation of future delivery in the foreign exchange market is known as
CorrectForward market
IncorrectForward market
- Question 58 of 60
58. Question
Category: NCERTTrade of visible items between the countries is known as
CorrectBalance of Trade
IncorrectBalance of Trade
- Question 59 of 60
59. Question
Category: NCERTWhen the import and export of visible items are equal, the situation is known as
CorrectBalance of Trade
IncorrectBalance of Trade
- Question 60 of 60
60. Question
Category: NCERTWhen there is a favourable balance of trade?
CorrectX > M
IncorrectX > M