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Class 12 Economics Question Paper Solved (2023) - 12 | Economics Class 12 - Commerce PDF Download

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 Page 1


    
58/4/3 1  P.T.O. 
narjmWu àíZ-nÌ H$moS> >H$mo CÎma-nwpñVH$m Ho$ 
_wI-n¥ð >na Adí` {bIo§ & 
Candidates must write the Q.P. Code 
on the title page of the answer-book. 
A 
 Series HFG1E/4 
  àíZ-nÌ H$moS>    
   
 
 
Q.P. Code   
amob Z§. 
Roll No. 
 
 
AW©emñÌ 
ECONOMICS 
: 3 : 80 
Time allowed : 3 hours Maximum Marks : 80 
 
 H¥$n`m Om±M H$a b| {H$ Bg àíZ-nÌ _o§ _w{ÐV n¥ð> 27 h¢ & 
 àíZ-nÌ _| Xm{hZo hmW H$s Amoa {XE JE àíZ-nÌ H$moS> H$mo narjmWu CÎma-nwpñVH$m Ho$ _wI-n¥ð> 
na {bI| & 
 H¥$n`m Om±M H$a b| {H$ Bg àíZ-nÌ _| >34 àíZ h¢ & 
 H¥$n`m àíZ H$m CÎma {bIZm ewê$ H$aZo go nhbo, CÎma-nwpñVH$m _| àíZ H$m H«$_m§H$ 
Adí` {bI| & 
 Bg  àíZ-nÌ  Zo Ho$ {bE 15 {_ZQ >H$m g_` {X`m J`m h¡ &  àíZ-nÌ H$m {dVaU 
10.15 ~Oo {H$`m OmEJm &  10.15 ~Oo go 10.30 ~Oo VH$ N>mÌ Ho$db àíZ-nÌ H$mo 
-nwpñVH$m na H$moB© CÎma Zht {bI|Jo & 
 Please check that this question paper contains 27 printed pages. 
 Q.P. Code given on the right hand side of the question paper should be 
written on the title page of the answer-book by the candidate. 
 Please check that this question paper contains 34 questions. 
 Please write down the serial number of the question in the  
answer-book before attempting it. 
 15 minute time has been allotted to read this question paper. The question 
paper  will  be  distributed  at 10.15 a.m. From 10.15 a.m. to 10.30 a.m., 
the students will read the question paper only and will not write any 
answer on the answer-book during this period. 
 
58/4/3
 
SET-3 
* 
Page 2


    
58/4/3 1  P.T.O. 
narjmWu àíZ-nÌ H$moS> >H$mo CÎma-nwpñVH$m Ho$ 
_wI-n¥ð >na Adí` {bIo§ & 
Candidates must write the Q.P. Code 
on the title page of the answer-book. 
A 
 Series HFG1E/4 
  àíZ-nÌ H$moS>    
   
 
 
Q.P. Code   
amob Z§. 
Roll No. 
 
 
AW©emñÌ 
ECONOMICS 
: 3 : 80 
Time allowed : 3 hours Maximum Marks : 80 
 
 H¥$n`m Om±M H$a b| {H$ Bg àíZ-nÌ _o§ _w{ÐV n¥ð> 27 h¢ & 
 àíZ-nÌ _| Xm{hZo hmW H$s Amoa {XE JE àíZ-nÌ H$moS> H$mo narjmWu CÎma-nwpñVH$m Ho$ _wI-n¥ð> 
na {bI| & 
 H¥$n`m Om±M H$a b| {H$ Bg àíZ-nÌ _| >34 àíZ h¢ & 
 H¥$n`m àíZ H$m CÎma {bIZm ewê$ H$aZo go nhbo, CÎma-nwpñVH$m _| àíZ H$m H«$_m§H$ 
Adí` {bI| & 
 Bg  àíZ-nÌ  Zo Ho$ {bE 15 {_ZQ >H$m g_` {X`m J`m h¡ &  àíZ-nÌ H$m {dVaU 
10.15 ~Oo {H$`m OmEJm &  10.15 ~Oo go 10.30 ~Oo VH$ N>mÌ Ho$db àíZ-nÌ H$mo 
-nwpñVH$m na H$moB© CÎma Zht {bI|Jo & 
 Please check that this question paper contains 27 printed pages. 
 Q.P. Code given on the right hand side of the question paper should be 
written on the title page of the answer-book by the candidate. 
 Please check that this question paper contains 34 questions. 
 Please write down the serial number of the question in the  
answer-book before attempting it. 
 15 minute time has been allotted to read this question paper. The question 
paper  will  be  distributed  at 10.15 a.m. From 10.15 a.m. to 10.30 a.m., 
the students will read the question paper only and will not write any 
answer on the answer-book during this period. 
 
58/4/3
 
SET-3 
* 
    
58/4/3 2   
: 
: 
(i) 34 
(ii) :
   
(iii) 20 
(iv) 4 I 60 80 
(v) 6 II 80 100 
(vi) : : 4 100 150 
(vii) 
IÊS> H$ 
g_{îQ> AW©emñÌ 
1. EH$ ^maVr` H$ånZr, {dXoe _| pñWV EH$ H$ånZr go G$U àmßV H$aVr h¡ & `h boZXoZ, ^maV 
Ho$ ^wJVmZ g§VwbZ _|, __________ ImVo Ho$ _________ nj _| XO© {H$`m OmEJm &  
    ([aº$ ñWmZm| H$mo ^aZo Ho$ {bE ghr {dH$ën H$m M`Z H$s{OE) 1  
(a) Mmby, H«o${S>Q>  $   
(b) Mmby, S>o{~Q> $  
(c) ny±Or, H«o${S>Q> 
(d) ny±Or, S>o{~Q>> 
Page 3


    
58/4/3 1  P.T.O. 
narjmWu àíZ-nÌ H$moS> >H$mo CÎma-nwpñVH$m Ho$ 
_wI-n¥ð >na Adí` {bIo§ & 
Candidates must write the Q.P. Code 
on the title page of the answer-book. 
A 
 Series HFG1E/4 
  àíZ-nÌ H$moS>    
   
 
 
Q.P. Code   
amob Z§. 
Roll No. 
 
 
AW©emñÌ 
ECONOMICS 
: 3 : 80 
Time allowed : 3 hours Maximum Marks : 80 
 
 H¥$n`m Om±M H$a b| {H$ Bg àíZ-nÌ _o§ _w{ÐV n¥ð> 27 h¢ & 
 àíZ-nÌ _| Xm{hZo hmW H$s Amoa {XE JE àíZ-nÌ H$moS> H$mo narjmWu CÎma-nwpñVH$m Ho$ _wI-n¥ð> 
na {bI| & 
 H¥$n`m Om±M H$a b| {H$ Bg àíZ-nÌ _| >34 àíZ h¢ & 
 H¥$n`m àíZ H$m CÎma {bIZm ewê$ H$aZo go nhbo, CÎma-nwpñVH$m _| àíZ H$m H«$_m§H$ 
Adí` {bI| & 
 Bg  àíZ-nÌ  Zo Ho$ {bE 15 {_ZQ >H$m g_` {X`m J`m h¡ &  àíZ-nÌ H$m {dVaU 
10.15 ~Oo {H$`m OmEJm &  10.15 ~Oo go 10.30 ~Oo VH$ N>mÌ Ho$db àíZ-nÌ H$mo 
-nwpñVH$m na H$moB© CÎma Zht {bI|Jo & 
 Please check that this question paper contains 27 printed pages. 
 Q.P. Code given on the right hand side of the question paper should be 
written on the title page of the answer-book by the candidate. 
 Please check that this question paper contains 34 questions. 
 Please write down the serial number of the question in the  
answer-book before attempting it. 
 15 minute time has been allotted to read this question paper. The question 
paper  will  be  distributed  at 10.15 a.m. From 10.15 a.m. to 10.30 a.m., 
the students will read the question paper only and will not write any 
answer on the answer-book during this period. 
 
58/4/3
 
SET-3 
* 
    
58/4/3 2   
: 
: 
(i) 34 
(ii) :
   
(iii) 20 
(iv) 4 I 60 80 
(v) 6 II 80 100 
(vi) : : 4 100 150 
(vii) 
IÊS> H$ 
g_{îQ> AW©emñÌ 
1. EH$ ^maVr` H$ånZr, {dXoe _| pñWV EH$ H$ånZr go G$U àmßV H$aVr h¡ & `h boZXoZ, ^maV 
Ho$ ^wJVmZ g§VwbZ _|, __________ ImVo Ho$ _________ nj _| XO© {H$`m OmEJm &  
    ([aº$ ñWmZm| H$mo ^aZo Ho$ {bE ghr {dH$ën H$m M`Z H$s{OE) 1  
(a) Mmby, H«o${S>Q>  $   
(b) Mmby, S>o{~Q> $  
(c) ny±Or, H«o${S>Q> 
(d) ny±Or, S>o{~Q>> 
    
58/4/3 3  P.T.O. 
General Instructions : 
Read the following instructions carefully and strictly follow them :  
(i) This question paper contains 34 questions. All questions are compulsory.  
(ii) This question paper contains two Sections : 
 Section A  Macro Economics  
 Section B  Indian Economic Development   
(iii) This paper contains 20 Multiple Choice Questions Type questions of 1 mark 
each. 
(iv) This paper contains 4 Short Answer Questions Type-I questions of 3 marks 
each to be answered in 60 to 80 words.   
(v) This paper contains 6 Short Answer Questions Type-II questions of 4 marks 
each to be answered in 80 to 100 words. 
(vi) This paper contains 4 Long Answer Questions Type questions of 6 marks each 
to be answered in 100 to 150 words.  
(vii) Attempt all parts of a question together.   
SECTION A 
Macro Economics 
1. An Indian company receives a loan from a company located abroad. This 
transaction would be recorded on the ___________ side of ____________ 
 
                  (Choose the correct alternative to fill up the blanks) 1 
(a) Credit, Current  
(b) Debit, Current 
(c) Credit, Capital  
(d) Debit, Capital 
Page 4


    
58/4/3 1  P.T.O. 
narjmWu àíZ-nÌ H$moS> >H$mo CÎma-nwpñVH$m Ho$ 
_wI-n¥ð >na Adí` {bIo§ & 
Candidates must write the Q.P. Code 
on the title page of the answer-book. 
A 
 Series HFG1E/4 
  àíZ-nÌ H$moS>    
   
 
 
Q.P. Code   
amob Z§. 
Roll No. 
 
 
AW©emñÌ 
ECONOMICS 
: 3 : 80 
Time allowed : 3 hours Maximum Marks : 80 
 
 H¥$n`m Om±M H$a b| {H$ Bg àíZ-nÌ _o§ _w{ÐV n¥ð> 27 h¢ & 
 àíZ-nÌ _| Xm{hZo hmW H$s Amoa {XE JE àíZ-nÌ H$moS> H$mo narjmWu CÎma-nwpñVH$m Ho$ _wI-n¥ð> 
na {bI| & 
 H¥$n`m Om±M H$a b| {H$ Bg àíZ-nÌ _| >34 àíZ h¢ & 
 H¥$n`m àíZ H$m CÎma {bIZm ewê$ H$aZo go nhbo, CÎma-nwpñVH$m _| àíZ H$m H«$_m§H$ 
Adí` {bI| & 
 Bg  àíZ-nÌ  Zo Ho$ {bE 15 {_ZQ >H$m g_` {X`m J`m h¡ &  àíZ-nÌ H$m {dVaU 
10.15 ~Oo {H$`m OmEJm &  10.15 ~Oo go 10.30 ~Oo VH$ N>mÌ Ho$db àíZ-nÌ H$mo 
-nwpñVH$m na H$moB© CÎma Zht {bI|Jo & 
 Please check that this question paper contains 27 printed pages. 
 Q.P. Code given on the right hand side of the question paper should be 
written on the title page of the answer-book by the candidate. 
 Please check that this question paper contains 34 questions. 
 Please write down the serial number of the question in the  
answer-book before attempting it. 
 15 minute time has been allotted to read this question paper. The question 
paper  will  be  distributed  at 10.15 a.m. From 10.15 a.m. to 10.30 a.m., 
the students will read the question paper only and will not write any 
answer on the answer-book during this period. 
 
58/4/3
 
SET-3 
* 
    
58/4/3 2   
: 
: 
(i) 34 
(ii) :
   
(iii) 20 
(iv) 4 I 60 80 
(v) 6 II 80 100 
(vi) : : 4 100 150 
(vii) 
IÊS> H$ 
g_{îQ> AW©emñÌ 
1. EH$ ^maVr` H$ånZr, {dXoe _| pñWV EH$ H$ånZr go G$U àmßV H$aVr h¡ & `h boZXoZ, ^maV 
Ho$ ^wJVmZ g§VwbZ _|, __________ ImVo Ho$ _________ nj _| XO© {H$`m OmEJm &  
    ([aº$ ñWmZm| H$mo ^aZo Ho$ {bE ghr {dH$ën H$m M`Z H$s{OE) 1  
(a) Mmby, H«o${S>Q>  $   
(b) Mmby, S>o{~Q> $  
(c) ny±Or, H«o${S>Q> 
(d) ny±Or, S>o{~Q>> 
    
58/4/3 3  P.T.O. 
General Instructions : 
Read the following instructions carefully and strictly follow them :  
(i) This question paper contains 34 questions. All questions are compulsory.  
(ii) This question paper contains two Sections : 
 Section A  Macro Economics  
 Section B  Indian Economic Development   
(iii) This paper contains 20 Multiple Choice Questions Type questions of 1 mark 
each. 
(iv) This paper contains 4 Short Answer Questions Type-I questions of 3 marks 
each to be answered in 60 to 80 words.   
(v) This paper contains 6 Short Answer Questions Type-II questions of 4 marks 
each to be answered in 80 to 100 words. 
(vi) This paper contains 4 Long Answer Questions Type questions of 6 marks each 
to be answered in 100 to 150 words.  
(vii) Attempt all parts of a question together.   
SECTION A 
Macro Economics 
1. An Indian company receives a loan from a company located abroad. This 
transaction would be recorded on the ___________ side of ____________ 
 
                  (Choose the correct alternative to fill up the blanks) 1 
(a) Credit, Current  
(b) Debit, Current 
(c) Credit, Capital  
(d) Debit, Capital 
    
58/4/3 4   
2. :   
1 : ^m¡{VH$ ny±Or _| d¥{Õ VWm ñQ>m°H$ (inventory) _| n[adV©Z H$mo {Zdoe Ho$ ê$n _| 
n[a^m{fV {H$`m OmVm h¡ & 
2 : Am` Ho$ g§VwbZ ñVa na dmñV{dH$ {Zdoe d dmñV{dH$ ~MV gX¡d ~am~a hmoVo 
h¢ & 
{XE JE H$WZm| Ho$ AmbmoH$ _|, {ZåZ{b{IV _| go ghr {dH$ën H$m M`Z H$s{OE :  1     
(a) H$WZ 1 gË` h¡ Am¡a H$WZ 2 AgË` h¡ &   
(b) H$WZ 1 AgË` h¡ Am¡a H$WZ 2 gË` h¡ & 
(c) H$WZ 1 Am¡a 2 XmoZm| gË` h¢ &  
(d) H$WZ 1 Am¡a 2 XmoZm| AgË` h¢ & 
3. AW©ì`dñWm _| _wÐm Ho$ ñQ>m°H$ H$mo _________ Ho$ {bE ^maVr` [aµOd© ~¢H$ (RBI), gaH$mar 
à{V^y{V`m| H$m __________ H$aoJm &  
                                       ([aº$ ñWmZm| H$mo ^aZo Ho$ {bE ghr {dH$ën H$m M`Z H$s{OE) 1 
(a) H$_ H$aZo, {dH«$`>    
(b) H$_ H$aZo, H«$`  
(c) o, {dH«$`  
(d)   >  
4. : A{^H$WZ (A) Am¡a H$maU (R) & ZrMo {XE JE {dH$ënm| _| 
go EH$ ghr {dH$ën Mw{ZE : 1 
 (A) : {ZY©Z ì`{º$`m| H$s VwbZm _| A_ra ì`{º$`m| H$s gr_m§V Cn^moJ àd¥{Îm 
(MPC) H$_ hmoVr h¡ &        
(R) : Cn^moJ dH«$ y-Aj na _yb-q~Xþ Ho$ D$na EH$ q~Xþ na à{VÀN>oX 
(intercept) H$aVm h¡ &  
   {dH$ën : 
(a) A{^H$WZ (A) Am¡a H$maU (R) XmoZm| gË` h¢ Am¡a H$maU (R), A{^H$WZ (A) H$s 
ghr ì¶m»¶m H$aVm h¡ & 
(b) A{^H$WZ (A) Am¡a H$maU (R) XmoZm| gË` h¢, bo{H$Z H$maU (R), A{^H$WZ (A) 
H$s ghr ì¶m»¶m  H$aVm h¡ & 
(c) A{^H$WZ (A) gË` h¡, bo{H$Z H$maU (R) AgË` h¡ & 
(d) A{^H$WZ (A) AgË` h¡, bo{H$Z H$maU (R) gË` h¡ & 
Page 5


    
58/4/3 1  P.T.O. 
narjmWu àíZ-nÌ H$moS> >H$mo CÎma-nwpñVH$m Ho$ 
_wI-n¥ð >na Adí` {bIo§ & 
Candidates must write the Q.P. Code 
on the title page of the answer-book. 
A 
 Series HFG1E/4 
  àíZ-nÌ H$moS>    
   
 
 
Q.P. Code   
amob Z§. 
Roll No. 
 
 
AW©emñÌ 
ECONOMICS 
: 3 : 80 
Time allowed : 3 hours Maximum Marks : 80 
 
 H¥$n`m Om±M H$a b| {H$ Bg àíZ-nÌ _o§ _w{ÐV n¥ð> 27 h¢ & 
 àíZ-nÌ _| Xm{hZo hmW H$s Amoa {XE JE àíZ-nÌ H$moS> H$mo narjmWu CÎma-nwpñVH$m Ho$ _wI-n¥ð> 
na {bI| & 
 H¥$n`m Om±M H$a b| {H$ Bg àíZ-nÌ _| >34 àíZ h¢ & 
 H¥$n`m àíZ H$m CÎma {bIZm ewê$ H$aZo go nhbo, CÎma-nwpñVH$m _| àíZ H$m H«$_m§H$ 
Adí` {bI| & 
 Bg  àíZ-nÌ  Zo Ho$ {bE 15 {_ZQ >H$m g_` {X`m J`m h¡ &  àíZ-nÌ H$m {dVaU 
10.15 ~Oo {H$`m OmEJm &  10.15 ~Oo go 10.30 ~Oo VH$ N>mÌ Ho$db àíZ-nÌ H$mo 
-nwpñVH$m na H$moB© CÎma Zht {bI|Jo & 
 Please check that this question paper contains 27 printed pages. 
 Q.P. Code given on the right hand side of the question paper should be 
written on the title page of the answer-book by the candidate. 
 Please check that this question paper contains 34 questions. 
 Please write down the serial number of the question in the  
answer-book before attempting it. 
 15 minute time has been allotted to read this question paper. The question 
paper  will  be  distributed  at 10.15 a.m. From 10.15 a.m. to 10.30 a.m., 
the students will read the question paper only and will not write any 
answer on the answer-book during this period. 
 
58/4/3
 
SET-3 
* 
    
58/4/3 2   
: 
: 
(i) 34 
(ii) :
   
(iii) 20 
(iv) 4 I 60 80 
(v) 6 II 80 100 
(vi) : : 4 100 150 
(vii) 
IÊS> H$ 
g_{îQ> AW©emñÌ 
1. EH$ ^maVr` H$ånZr, {dXoe _| pñWV EH$ H$ånZr go G$U àmßV H$aVr h¡ & `h boZXoZ, ^maV 
Ho$ ^wJVmZ g§VwbZ _|, __________ ImVo Ho$ _________ nj _| XO© {H$`m OmEJm &  
    ([aº$ ñWmZm| H$mo ^aZo Ho$ {bE ghr {dH$ën H$m M`Z H$s{OE) 1  
(a) Mmby, H«o${S>Q>  $   
(b) Mmby, S>o{~Q> $  
(c) ny±Or, H«o${S>Q> 
(d) ny±Or, S>o{~Q>> 
    
58/4/3 3  P.T.O. 
General Instructions : 
Read the following instructions carefully and strictly follow them :  
(i) This question paper contains 34 questions. All questions are compulsory.  
(ii) This question paper contains two Sections : 
 Section A  Macro Economics  
 Section B  Indian Economic Development   
(iii) This paper contains 20 Multiple Choice Questions Type questions of 1 mark 
each. 
(iv) This paper contains 4 Short Answer Questions Type-I questions of 3 marks 
each to be answered in 60 to 80 words.   
(v) This paper contains 6 Short Answer Questions Type-II questions of 4 marks 
each to be answered in 80 to 100 words. 
(vi) This paper contains 4 Long Answer Questions Type questions of 6 marks each 
to be answered in 100 to 150 words.  
(vii) Attempt all parts of a question together.   
SECTION A 
Macro Economics 
1. An Indian company receives a loan from a company located abroad. This 
transaction would be recorded on the ___________ side of ____________ 
 
                  (Choose the correct alternative to fill up the blanks) 1 
(a) Credit, Current  
(b) Debit, Current 
(c) Credit, Capital  
(d) Debit, Capital 
    
58/4/3 4   
2. :   
1 : ^m¡{VH$ ny±Or _| d¥{Õ VWm ñQ>m°H$ (inventory) _| n[adV©Z H$mo {Zdoe Ho$ ê$n _| 
n[a^m{fV {H$`m OmVm h¡ & 
2 : Am` Ho$ g§VwbZ ñVa na dmñV{dH$ {Zdoe d dmñV{dH$ ~MV gX¡d ~am~a hmoVo 
h¢ & 
{XE JE H$WZm| Ho$ AmbmoH$ _|, {ZåZ{b{IV _| go ghr {dH$ën H$m M`Z H$s{OE :  1     
(a) H$WZ 1 gË` h¡ Am¡a H$WZ 2 AgË` h¡ &   
(b) H$WZ 1 AgË` h¡ Am¡a H$WZ 2 gË` h¡ & 
(c) H$WZ 1 Am¡a 2 XmoZm| gË` h¢ &  
(d) H$WZ 1 Am¡a 2 XmoZm| AgË` h¢ & 
3. AW©ì`dñWm _| _wÐm Ho$ ñQ>m°H$ H$mo _________ Ho$ {bE ^maVr` [aµOd© ~¢H$ (RBI), gaH$mar 
à{V^y{V`m| H$m __________ H$aoJm &  
                                       ([aº$ ñWmZm| H$mo ^aZo Ho$ {bE ghr {dH$ën H$m M`Z H$s{OE) 1 
(a) H$_ H$aZo, {dH«$`>    
(b) H$_ H$aZo, H«$`  
(c) o, {dH«$`  
(d)   >  
4. : A{^H$WZ (A) Am¡a H$maU (R) & ZrMo {XE JE {dH$ënm| _| 
go EH$ ghr {dH$ën Mw{ZE : 1 
 (A) : {ZY©Z ì`{º$`m| H$s VwbZm _| A_ra ì`{º$`m| H$s gr_m§V Cn^moJ àd¥{Îm 
(MPC) H$_ hmoVr h¡ &        
(R) : Cn^moJ dH«$ y-Aj na _yb-q~Xþ Ho$ D$na EH$ q~Xþ na à{VÀN>oX 
(intercept) H$aVm h¡ &  
   {dH$ën : 
(a) A{^H$WZ (A) Am¡a H$maU (R) XmoZm| gË` h¢ Am¡a H$maU (R), A{^H$WZ (A) H$s 
ghr ì¶m»¶m H$aVm h¡ & 
(b) A{^H$WZ (A) Am¡a H$maU (R) XmoZm| gË` h¢, bo{H$Z H$maU (R), A{^H$WZ (A) 
H$s ghr ì¶m»¶m  H$aVm h¡ & 
(c) A{^H$WZ (A) gË` h¡, bo{H$Z H$maU (R) AgË` h¡ & 
(d) A{^H$WZ (A) AgË` h¡, bo{H$Z H$maU (R) gË` h¡ & 
    
58/4/3 5  P.T.O. 
2. Read the following statements carefully : 
 Statement 1 : Investment is defined as addition to the physical capital 
and changes in the inventory.  
Statement 2 : At equilibrium level of income, ex-post investments and 
ex-post savings are always equal.  
In light of the given statements, choose the correct alternative from the 
following :   1 
(a) Statement 1 is true and Statement 2 is false.  
(b) Statement 1 is false and Statement 2 is true.  
(c) Both Statements 1 and 2 are true. 
(d) Both Statements 1 and 2 are false.  
3. The Reserve Bank of India (RBI) __________ government securities in a 
bid to __________ the stock of money in the economy.  
        (Choose the correct alternative to fill up the blanks) 1 
(a) sells, decrease  
(b) purchases, decrease 
(c) sells, increase  
(d) purchases, not change 
4. Read the following statements : Assertion (A) and Reason (R). Choose the 
correct alternative given below.   1 
 Assertion (A) : Rich people have lower Marginal Propensity to Consume 
(MPC) as compared to poor people.  
Reason (R) : Consumption curve makes an intercept on the y-axis at a 
point above the origin. 
Alternatives : 
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the 
correct explanation of the Assertion (A).  
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not 
the correct explanation of the Assertion (A).  
(c) Assertion (A) is true, but Reason (R) is false.  
(d) Assertion (A) is false, but Reason (R) is true. 
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