Sample Paper 14-15 & 15-16 & 16-17
(Q1) Read the following dialogue between two people (1M)
Sita : I want 1kg of potatoes
Rani : What will you give in exchange?
Sita : I can give you 2 litres of milk in return for the potatoes.
Rani : I don’t need milk. I want a pair of shoe
Which of the following problem is being faced by Sita and Rani in their exchange process?
(a) Lack of double coincidence of wants
(b) Absence of common units of value
(c) Lack of store of value
(d) Lack of standard of deferred payment
(Q2) Which of the following is a characteristic of a good? (1M)
(b) Can be stored
(c) Production and consumption must happen simultaneously
(d) Cannot be transferred
(Q3) Supply of money refers to quantity of money
(a) As on 31st March
(b) During any specified period of time
(c) As on any point of time
(d) During a fiscal year
(Q4) Which of the following agency is responsible for issuing Rs.1 currency note in India? (1M)
(a) Reserve Bank of India.
(b) Ministry of finance
(c) Ministry of Commerce
(d) Niti Aayog
(Q1) What is barter ? (1M)
(Q2) What are demand deposits ?
(Q3) How does money solve the problem of double coincidence of wants ? (3M)
Ans: The problem of double coincidence of wants arises when there is no medium of exchange. In such a case the buyer has to make a search for the seller who also wants to buy the same good which the buyer itself offers for exchange. (1½M)
Money has solved the problem by working as a medium of exchange. The seller can sell the goods in the market in return for money and buy the goods he wants to buy in return for the money. (1½ M)
(Q4) Define money supply and its components ?
Ans: (c)Stock of money in a country on a particular day is termed as money supply It has two components : currency with public outside banks and demand deposits. Demand deposits are deposits which can be withdrawn by writing cheques. Both the components are usable for carrying out transactions at will.
(Q1) Who regulates money supply ? (Choose the correct alternative) (1M)
(a) Government of India
(b) Reserve Bank of India
(c) Commercial Banks
(d) Planning Commission
(Q2) Which of the following is not a function of money ?
(a) medium of exchange
(b) price stability
(c) store of value
(d) unit of account
(Q3) What are demand deposits ?
Ans: Deposits that are withdrawn by cheque.
(Q4) What are time deposits ?
Ans: Deposits made for a fixed period.
(Q5) State the components of money supply.
Ans: (i) Money with the public (ii) Demand Deposits
(Q1) Explain “difficulty in storing wealth” problem faced in the barter system of exchange (3M)
Ans: Under barter system there were difficulties in storing wealth. Wealth is stored to be used in future.
All goods cannot be stored. Perishable goods cannot be stored.
All goods cannot be transported from one place to another.
All goods may not be acceptable as medium of exchange.
No single physical good has all these qualities. So in the barter system of exchange there was difficulty wealth. (3M)
(Q2) Define money supply ? (1M)
Ans: Money supply of a country is a stock of money in circulation at any point of time.
(Q3) State the meaning and components of money supply
(Q4) Define money. List its components
(Q1) Define money supply. (1M)
(Q2) State the two components of M1 measure of Money Supply. (1M)
Ans: Currency held by public and demand deposits held by banks.