Class 12 Economics Official Sample Question Paper (2021-22- Term II) | Economics Class 12 - Commerce PDF Download

 Page 1


 
CBSE SAMPLE QUESTION PAPER – 2021-22 
TERM 1 - CLASS 12   ECONOMICS 
Time: 90 minutes        Theory: 40 Marks 
GENERAL INSTRUCTIONS: 
1. There are a total 60 questions in this paper out of which 50 questions are to be attempted.  
2. This paper is divided into three Sections: 
a. Section A – Contains 24 questions. Attempt any 20 questions   
b. Section B – Contains 24 questions. Attempt any 20 questions 
c. Section C – Contains 12 questions. Attempt any 10 questions 
3. All Questions carry equal marks.  
4. There are no negative marking 
 
Q.NO. QUESTIONS 
 SECTION A 
  (20 questions out of 24 questions are to be attempted)  
1 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. 
2 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  
3 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 
4 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 
5 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 
 
6 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’. 
Page 2


 
CBSE SAMPLE QUESTION PAPER – 2021-22 
TERM 1 - CLASS 12   ECONOMICS 
Time: 90 minutes        Theory: 40 Marks 
GENERAL INSTRUCTIONS: 
1. There are a total 60 questions in this paper out of which 50 questions are to be attempted.  
2. This paper is divided into three Sections: 
a. Section A – Contains 24 questions. Attempt any 20 questions   
b. Section B – Contains 24 questions. Attempt any 20 questions 
c. Section C – Contains 12 questions. Attempt any 10 questions 
3. All Questions carry equal marks.  
4. There are no negative marking 
 
Q.NO. QUESTIONS 
 SECTION A 
  (20 questions out of 24 questions are to be attempted)  
1 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. 
2 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  
3 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 
4 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 
5 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 
 
6 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 
7 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 
8 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 
9 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 
10 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 
11 Industrial Policy Resolution (IPR) 1956 formed the basis of the_________ Five Year Plan.   
      (Fill up the blank with correct alternative)  
a) First  
b) Fourth 
c) Second  
a) Third 
12 Occupational structure refers to___________                 (Fill in the blank with correct alternative) 
a) size of labour force in a country 
Page 3


 
CBSE SAMPLE QUESTION PAPER – 2021-22 
TERM 1 - CLASS 12   ECONOMICS 
Time: 90 minutes        Theory: 40 Marks 
GENERAL INSTRUCTIONS: 
1. There are a total 60 questions in this paper out of which 50 questions are to be attempted.  
2. This paper is divided into three Sections: 
a. Section A – Contains 24 questions. Attempt any 20 questions   
b. Section B – Contains 24 questions. Attempt any 20 questions 
c. Section C – Contains 12 questions. Attempt any 10 questions 
3. All Questions carry equal marks.  
4. There are no negative marking 
 
Q.NO. QUESTIONS 
 SECTION A 
  (20 questions out of 24 questions are to be attempted)  
1 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. 
2 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  
3 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 
4 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 
5 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 
 
6 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 
7 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 
8 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 
9 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 
10 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 
11 Industrial Policy Resolution (IPR) 1956 formed the basis of the_________ Five Year Plan.   
      (Fill up the blank with correct alternative)  
a) First  
b) Fourth 
c) Second  
a) Third 
12 Occupational structure refers to___________                 (Fill in the blank with correct alternative) 
a) size of labour force in a country 
 
b) number of people living in a country 
c) distribution of workforce among different sectors of an economy 
d) nature of different occupations 
13 _____________ is the portion of agricultural produce which is sold in the market by the farmers, 
after meeting their self-consumption requirements.        (Fill in the blank with correct alternative) 
a) Trade Surplus 
b) Marketable Surplus 
c) Producer Surplus 
d) Consumer Surplus 
14 Read the following statements carefully and choose the correct alternatives given below:  
Statement 1 –Poverty line in India is defined in terms of monetary value of the minimum 
nutritional (calorific) requirements of an individual in a day.  
Statement 2 – The definition of poverty line in monetary terms has not changed over the years. 
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 
15 Read the following statements carefully and choose the correct alternatives given below:  
Statement 1 – India is often called as the ‘outsourcing hub’ of the world.  
Statement 2 – Availability of skilled manpoweris one of the prime factors responsible for the 
status gained by India at the international platform.   
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 
16 Before the advent of Green Revolution in 1960’s, India was primarily dependent on 
_________for the supply of food grains.  (Fill in the blank with correct alternative) 
a) United States of America (USA) 
b) Britain (United Kingdom) 
c) Mexico 
a) Union of Soviet Socialist Republics (USSR) 
17 From the following given sets of statements in column I and II, choose the correct pair of 
statements. 
 Column I  Column II 
A Exports of goods and 
services 
i Excess of Exports of goods over the 
Imports of goods 
B Trade Surplus ii An element of invisible items 
C Current Transfers to rest of 
the world 
iii Recorded as a positive item in the BOP 
account 
D Portfolio Investments iv Foreign Institutional Investors 
Page 4


 
CBSE SAMPLE QUESTION PAPER – 2021-22 
TERM 1 - CLASS 12   ECONOMICS 
Time: 90 minutes        Theory: 40 Marks 
GENERAL INSTRUCTIONS: 
1. There are a total 60 questions in this paper out of which 50 questions are to be attempted.  
2. This paper is divided into three Sections: 
a. Section A – Contains 24 questions. Attempt any 20 questions   
b. Section B – Contains 24 questions. Attempt any 20 questions 
c. Section C – Contains 12 questions. Attempt any 10 questions 
3. All Questions carry equal marks.  
4. There are no negative marking 
 
Q.NO. QUESTIONS 
 SECTION A 
  (20 questions out of 24 questions are to be attempted)  
1 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. 
2 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  
3 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 
4 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 
5 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 
 
6 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 
7 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 
8 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 
9 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 
10 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 
11 Industrial Policy Resolution (IPR) 1956 formed the basis of the_________ Five Year Plan.   
      (Fill up the blank with correct alternative)  
a) First  
b) Fourth 
c) Second  
a) Third 
12 Occupational structure refers to___________                 (Fill in the blank with correct alternative) 
a) size of labour force in a country 
 
b) number of people living in a country 
c) distribution of workforce among different sectors of an economy 
d) nature of different occupations 
13 _____________ is the portion of agricultural produce which is sold in the market by the farmers, 
after meeting their self-consumption requirements.        (Fill in the blank with correct alternative) 
a) Trade Surplus 
b) Marketable Surplus 
c) Producer Surplus 
d) Consumer Surplus 
14 Read the following statements carefully and choose the correct alternatives given below:  
Statement 1 –Poverty line in India is defined in terms of monetary value of the minimum 
nutritional (calorific) requirements of an individual in a day.  
Statement 2 – The definition of poverty line in monetary terms has not changed over the years. 
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 
15 Read the following statements carefully and choose the correct alternatives given below:  
Statement 1 – India is often called as the ‘outsourcing hub’ of the world.  
Statement 2 – Availability of skilled manpoweris one of the prime factors responsible for the 
status gained by India at the international platform.   
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 
16 Before the advent of Green Revolution in 1960’s, India was primarily dependent on 
_________for the supply of food grains.  (Fill in the blank with correct alternative) 
a) United States of America (USA) 
b) Britain (United Kingdom) 
c) Mexico 
a) Union of Soviet Socialist Republics (USSR) 
17 From the following given sets of statements in column I and II, choose the correct pair of 
statements. 
 Column I  Column II 
A Exports of goods and 
services 
i Excess of Exports of goods over the 
Imports of goods 
B Trade Surplus ii An element of invisible items 
C Current Transfers to rest of 
the world 
iii Recorded as a positive item in the BOP 
account 
D Portfolio Investments iv Foreign Institutional Investors 
 
Alternatives: 
a) A-i 
b) B-ii      
c) C-iii      
d) D-iv 
18 National Bank for Agricultural and Rural Development (NABARD) was set up in 1982 as 
a/the_________body to coordinate the activities of all institutions involved in the rural financing 
system.            (Fill in the blank with correct alternative) 
a) cooperative 
b) apex 
c) micro credit 
d) private credit 
19 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  
20 ____________ is not a reason for poverty in India.          (Fill in the blank with correct alternative) 
a) population explosion  
b) rise in per capita GDP  
c) low capital formation 
d) socio-economic exclusion 
21 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 
22 ‘Since independence, India has witnessed a considerable fall in the Infant Mortality Rate in India’ 
Identify which of the following may not be one of the reasons for the fall in the Infant Mortality 
Rate?         (Choose the correct alternative) 
a) Improvement in health facilities over the years 
b) Improvement in educational standards over the years 
c) Fall in standard of living of the population of the nation over the years 
d) Technological expansion over the years 
23 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 
Page 5


 
CBSE SAMPLE QUESTION PAPER – 2021-22 
TERM 1 - CLASS 12   ECONOMICS 
Time: 90 minutes        Theory: 40 Marks 
GENERAL INSTRUCTIONS: 
1. There are a total 60 questions in this paper out of which 50 questions are to be attempted.  
2. This paper is divided into three Sections: 
a. Section A – Contains 24 questions. Attempt any 20 questions   
b. Section B – Contains 24 questions. Attempt any 20 questions 
c. Section C – Contains 12 questions. Attempt any 10 questions 
3. All Questions carry equal marks.  
4. There are no negative marking 
 
Q.NO. QUESTIONS 
 SECTION A 
  (20 questions out of 24 questions are to be attempted)  
1 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. 
2 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  
3 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 
4 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 
5 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 
 
6 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 
7 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 
8 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 
9 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 
10 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 
11 Industrial Policy Resolution (IPR) 1956 formed the basis of the_________ Five Year Plan.   
      (Fill up the blank with correct alternative)  
a) First  
b) Fourth 
c) Second  
a) Third 
12 Occupational structure refers to___________                 (Fill in the blank with correct alternative) 
a) size of labour force in a country 
 
b) number of people living in a country 
c) distribution of workforce among different sectors of an economy 
d) nature of different occupations 
13 _____________ is the portion of agricultural produce which is sold in the market by the farmers, 
after meeting their self-consumption requirements.        (Fill in the blank with correct alternative) 
a) Trade Surplus 
b) Marketable Surplus 
c) Producer Surplus 
d) Consumer Surplus 
14 Read the following statements carefully and choose the correct alternatives given below:  
Statement 1 –Poverty line in India is defined in terms of monetary value of the minimum 
nutritional (calorific) requirements of an individual in a day.  
Statement 2 – The definition of poverty line in monetary terms has not changed over the years. 
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 
15 Read the following statements carefully and choose the correct alternatives given below:  
Statement 1 – India is often called as the ‘outsourcing hub’ of the world.  
Statement 2 – Availability of skilled manpoweris one of the prime factors responsible for the 
status gained by India at the international platform.   
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 
16 Before the advent of Green Revolution in 1960’s, India was primarily dependent on 
_________for the supply of food grains.  (Fill in the blank with correct alternative) 
a) United States of America (USA) 
b) Britain (United Kingdom) 
c) Mexico 
a) Union of Soviet Socialist Republics (USSR) 
17 From the following given sets of statements in column I and II, choose the correct pair of 
statements. 
 Column I  Column II 
A Exports of goods and 
services 
i Excess of Exports of goods over the 
Imports of goods 
B Trade Surplus ii An element of invisible items 
C Current Transfers to rest of 
the world 
iii Recorded as a positive item in the BOP 
account 
D Portfolio Investments iv Foreign Institutional Investors 
 
Alternatives: 
a) A-i 
b) B-ii      
c) C-iii      
d) D-iv 
18 National Bank for Agricultural and Rural Development (NABARD) was set up in 1982 as 
a/the_________body to coordinate the activities of all institutions involved in the rural financing 
system.            (Fill in the blank with correct alternative) 
a) cooperative 
b) apex 
c) micro credit 
d) private credit 
19 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  
20 ____________ is not a reason for poverty in India.          (Fill in the blank with correct alternative) 
a) population explosion  
b) rise in per capita GDP  
c) low capital formation 
d) socio-economic exclusion 
21 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 
22 ‘Since independence, India has witnessed a considerable fall in the Infant Mortality Rate in India’ 
Identify which of the following may not be one of the reasons for the fall in the Infant Mortality 
Rate?         (Choose the correct alternative) 
a) Improvement in health facilities over the years 
b) Improvement in educational standards over the years 
c) Fall in standard of living of the population of the nation over the years 
d) Technological expansion over the years 
23 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 
 
24 Prior to India's independence, the stagnation in the agricultural sector was mainly caused by 
___________.       (Fill up the blank with correct alternative) 
 
a) investment in technology 
b) investment in agriculture facilities  
c) advanced infrastructural facilities 
d) land settlement system 
 SECTION B 
  (20 questions out of 24 questions are to be attempted) 
25 Read the following statements - Assertion (A) and Reason (R):  
Assertion (A) – Acquisition of a domestic (Indian) company by a foreign (Australian) company 
will be recorded on the credit side of Balance of Payment Account. 
Reason(R) – It leads to outflow of foreign exchange from the domestic economy. 
From the given alternatives choose the correct one: 
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 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       
27 Read the following statements - Assertion (A) and Reason (R):  
Assertion (A) – Major policy initiatives (land reforms and Green Revolution) helped India to 
become self-sufficient in food grains production. 
Reason(R) – The proportion of people depending on agriculture did not decline as expected after 
the Green Revolution. 
From the given alternatives choose the correct one: 
 
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.   
28 Identify the incorrect statement from the following:                      (Choose the correct alternative) 
a) Diversification in agriculture sector provides sustainable livelihood rural population. 
 
b) Diversification includes - change in cropping pattern, shift of workforce from agriculture 
to other allied activities and non-agriculture sector. 
 
c) Objective of investment in new agricultural avenues (non-farm activities) increases 
financial risks for the rural population.