The document is an economics test for Class XII students containing 14 multiple choice and short answer questions. Some of the key topics covered in the questions include: money multiplier, distinguishing between commercial banks and central banks, types of government receipts (tax vs non-tax, revenue vs capital), government budget (classifying expenditures), and capital vs revenue expenditure. The passage discusses India scaling back capital expenditure to reduce the risk of blowing out its budget deficit, with spending directed more towards social sectors than infrastructure. It provides examples of revenue expenditures from the article.
The document is an economics test for Class XII students containing 14 multiple choice and short answer questions. Some of the key topics covered in the questions include: money multiplier, distinguishing between commercial banks and central banks, types of government receipts (tax vs non-tax, revenue vs capital), government budget (classifying expenditures), and capital vs revenue expenditure. The passage discusses India scaling back capital expenditure to reduce the risk of blowing out its budget deficit, with spending directed more towards social sectors than infrastructure. It provides examples of revenue expenditures from the article.
The document is an economics test for Class XII students containing 14 multiple choice and short answer questions. Some of the key topics covered in the questions include: money multiplier, distinguishing between commercial banks and central banks, types of government receipts (tax vs non-tax, revenue vs capital), government budget (classifying expenditures), and capital vs revenue expenditure. The passage discusses India scaling back capital expenditure to reduce the risk of blowing out its budget deficit, with spending directed more towards social sectors than infrastructure. It provides examples of revenue expenditures from the article.
The document is an economics test for Class XII students containing 14 multiple choice and short answer questions. Some of the key topics covered in the questions include: money multiplier, distinguishing between commercial banks and central banks, types of government receipts (tax vs non-tax, revenue vs capital), government budget (classifying expenditures), and capital vs revenue expenditure. The passage discusses India scaling back capital expenditure to reduce the risk of blowing out its budget deficit, with spending directed more towards social sectors than infrastructure. It provides examples of revenue expenditures from the article.
GENERAL INSTRUCTION: i) All questions are compulsory. i) Marks allotted to each question are indicated against it. ii) Answers should be brief and to the point. Questions carrying 4 marks are to be answered within 80-100 iv) words each.
1. Fill in the blanks:
Money Multiplier is 5if is 20%. (1)
2. Giving reasons find out whether the following statement is true or false. (1)
"Money supply is a flow concept."
3. Why are the financial institutions like UTI& LIC not considered bank? (1)
4. What is a cheque? (1)
5. is an example of a non-tax revenue receipt. (1)
6. Define Government Budget. (1)
7. "Income Tax' received by Government is Capital receipt.Do you agree?
Give reason.
(1) statements--- Assertion (A) and Reason (R). 8. Read the following Choose the correct one from the given alternatives mentioned bellow: (1)
of goods which Assertion (A). In Government budget production are injurious to health (Likecigarettes) is discouraged through heavy taxation and production of socially useful (Iike khadi) is encouraged go0d through subsidies. If private sector does not take initiative in certau Activities, government directly controls them like water supply, sanitation etc Keason (R). Higher taxescan be imposed by the Government on income earned by the rich and aiso on the goods consumed by them in order to reduce their personal disposable income. Also in order to increase the disposable income of the poor, government can provide free services of
education, health etc.
Alternatives: (a) Both Assertion (A) and Reason(R) are true and Reason(R) is the correct explanation or
Assertion (A). (6) 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.
9. Which of the following is not a non-tax revenue receipt?- (1)
a) GST b) External grants c) Dividends and profits d) Disinvestment
10. From the set of statements given in column Iand column Il, choose the correct pair of (1) Statements:
Column I Column
Lack of standard of deferred payment.
(i) Money Commercial Bank Issue of currency. (i) Central Bank Overdraft facility. (ii) Control credit creation. Legal Reserve Ratio (iv) sentences choosing the correct alternative. (1) 11. Complete the following in the money market of a country. (central bank/ post office/ is the apex bank commercial bank.) 12. Commercial bank's primary motive is to (increase in public welfare/make (1) profit/decide the monetary policy) 13. One rupee note is issued by RBI/ SBI/ Central Govt) (1)
into Revenue expenditure or Capital expenditure (3)
14.Categorise the following school building. a) Construction of Govt by Govt of India. b) Loans granted to State the Govt. Employees. c)Payment ofsalaries to Interest paid in Government loan. d) e) Expenditure on building bridge. a
fExpenditure on collection of taxes.
o ane number Read the following article and answer the questions given below: ( question 13 case based questions.) (4)
aid economic growth, as
India hasscaled back expenditure, including on productive assets that the government is confronted with the risk of its budget deficit blowing out. Capital fixed assets like expenditure- the money spent on creating, maintaining or improving the six months to September, Roads and factories- stood at 40%of the budgeted amount in Controller General of down from 55.5% in the year -ago period, data from the government's to 49% of the budget aim compared Accounts show. The overall spending during the period was measures worth 53% last year. That's despite Prime Minister Narendra Modi's govt outlining fallout of the more than 21 trillion Rupees ($281 Billion) to counter the economic and social of the spending was directed Covid-19 outbreak. A closer look at the numbers shows the bulk and steel towards the poor and the farmers, with crucial sectors such as coal, power shipping assets has so far less than third of their annual budget allocation. Spending on capital receiving a and overheads such as trailed the so called revenue expenditure that includes interest payments salaries, the data released last week showed. The government placed spending curbs on some ministries from April to December to manage its cash flow.
Source-Business Standard, Nov. 5. 2020
reduce the risk of_ Deficit
15Areduction in capital expenditure is done to (revenue/budget{Choose the correct alternative)
months to September 2020 is directed
16 Allocation of resources in the budget in the six (choose the correct alternative) towards
a) Economic upliftment of the economy.
b) Social upliftment of the economy. The poor and the farmers. d) All the above.
17.Give two examples of revenue expenditure from the article.
18.Capital expenditure refers to the estimated expenditure of the Government
In a fiscal year which (reduces/ increases) liabilities of the govt.
Choose the correct alternative) 9. Distinguish between Revenue Receipt and Capltal Recelpt. OR (4) Differentiate between Direct tax and Indirect tax. 20. Explain "Government's bank" function of the Central bank. (4)
From the following information given below, calculate 2+2+2
Particulars Rs.In crores
(i) Revenue deficit
22,000 (i) Recovery of loans 18,000 (ii) Interest payment 08,000 (iv Disinvestment 17,000 (v) Revenue expenditure 30,000 (vi) Capital expenditure 45,000 21 .Revenue Defidt 22 Fiscal Defict 23. Primary Defict_
