Term 1 Examination Practice Paper – ECONOMICS Class XII

CBSE Class 12 Economics Term 1 Board Exam sample paper 2021, practice this to score full marks

Table of Contents

CBSE Term-1 Board Exam 2021: The Central Board of Secondary Education has released sample papers for the upcoming class 10 and 12 Term-1 board exam 2021. As per the schedule, the CBSE class 12 Economics board exam 2021 will be held on December 15, 2021.

WhatsApp Channel Join Now

Telegram Channel Join Now

Instagram Channel Follow Us

General Instructions:

Read questions carefully.
Each question has four choices. Select the best answer.
All the questions in both sections are compulsory.

Test Your Knowledge.

Per Question Time : 6 Minutes

CLICK on Start Quiz for Live Test.

QUIZ START

#1. The main aim of monetary policy is _________.

To increase trade surplus

Employment generation in the country

To generate greater tax revenue

To bring price stability in the economy

#2. How much loan was provided by World Bank and IMF during the nineties to bail India out of the crisis?

$ 10 million

$ 20 billion

$ 7 billion

$ 10 billion

#3. ___________ refers to poverty of people, in comparison to other people, regions or nations.

Neither a nor b

Absolute poverty

Both a and b

Relative poverty

#4. The expenditure by the government on education is expressed as:

Percentage of National Income

Percentage of total government expenditure

Both a and b

Neither a nor b

#5. Read the following case study carefully and answer the question carefully 21-22 on the basis of same. It is the year 1936, Ram is making beautiful handmade items for home decoration. But the British government has imposed strict laws due to which Ram is not being able to sell his goods in the domestic or international market. Answer the following questions with reference to this passage: Question is Foreign demand for the Indian handicrafts was destroyed by:

Heavy duty on exports and duty-free import

Heavy duty on imports and duty-free export

Heavy duty on imports and exports

Duty free exports and imports

#6. Identify the tax whose burden can be shifted:

Income tax

Goods and Services Tax

Corporate tax

None of these

#7. ____________ poor are the ones who regularly move in and out of poverty.

Chronic

Churning

Occasionally

None of these

#8. Outsourcing is good for India because:

Neither a nor b

It provides excellence in a particular field

It provides employment to large number of unemployed

Both a and b

#9. In which year, India adopted High Yielding Varieties programme for the first time.

1956

1986

1966

1977

#10. Which of the following is a non- farm area of employment?

Fisheries

Livestock farming

All of these

Horticulture

#11. What is the duration of Union Budget?

Two years

Half-yearly

Five years

Annual

#12. ____________ involves deregulation and reduction of government controls and greater autonomy of private investment, to make economy more competitive.

None of these

Privatization

Liberalization

Globalization

#13. Deposit Creation by banks comes to an end when:

Total Cash Reserves becomes equal to initial Deposits

Fresh Deposits with banks become zero.

Money Multiplier becomes zero

Legal Reserve Ratio becomes zero

#14. In a government budget, revenue deficit is Rs 50,000 crores and borrowings are Rs 75,000 crores. The fiscal deficit will be:

Rs 50,000 crores

Rs 1,25,000 crores

Rs 75,000 crores

Rs 25,000 crores

#15. From the set of statements given in Column I and Column II, choose the correct pair of statements:

Export of software to France + Debit side of current account

Import of machinery from China + Capital account of Balance of Payments

Investment by Apple phones firm in India + Credit side of current account of Balance of Payments

Remittances to relative staying abroad + Debit side of current account of Balance of Payments

#16. Which of the following statement is false in the context of industrial sector during British rule?

There was low contribution of industries to GDP

Public sector played significant role

There was decline in handicraft industries

The British Government promoted capital goods industries

#17. If the total deposits created by commercial banks is Rs 10,000 crores and legal reserve requirements is 40%, then number of initial deposits will be___________.

Rs 3,000 crores

Rs 4,000 crores

Rs 14,000 crores

Rs 2,000 crores

#18. Fees of the government college is a revenue receipt because:

It increases asset of the government.

It creates liability of the government.

It neither creates any liability nor reduces any asset of the government.

It neither creates any asset nor reduces any liability of the government.

#19. Which of the following industries are reserved for the public sector?

Cement

Atomic energy generation

Both a and b

Defense aircraft and warships

#20. Supply of money refers to _____________.

Currency held by the public and demand deposits with commercial banks

Currency held by the public

Currency held in the government account

Currency held by RBI

#21. Name the state which is held as a success story in the efficient implementation of milk cooperatives.

Andhra Pradesh

Maharashtra

Gujarat

Jammu and Kashmir

#22. If amount of initial deposits with commercial banks is Rs 3,000 crore and LRR is 25%, then total deposits created will be:

Rs 750 crore

Rs 6,000 crore

Rs 9,000 crore

Rs 12,000 crore

#23. Read the following case study carefully and answer the question carefully 21-22 on the basis of same. It is the year 1936, Ram is making beautiful handmade items for home decoration. But the British government has imposed strict laws due to which Ram is not being able to sell his goods in the domestic or international market. Answer the following questions with reference to this passage: Question is Decay of handicrafts was due to:

Discriminatory tariff policy of the state

None of them

Introduction of railways in India

All of them

#24. ‘Import of machinery’ is recorded in ___ account and ‘Borrowings from abroad’ is recorded in the account.

Current, current

Capital, current

Current, capital

Capital, capital

#25. Which programme has been renamed as Deendayal Antayodaya Yojna?

NRLM - National Rural Livelihoods Mission

PMRY - Pradhan Mantri Rozgar Yojana

REGP - Rural Employment Generation Programme

SGSY - Swarnjayanti Gram Swarozgar Yojana

#26. High powered money consists of:

Currency and demand deposits

Currency, cash reserves with banks and demand deposits

Currency and coins held by the public

Currency held by public and cash reserves with banks

#27. If a balance of trade is showing a deficit of Rs 300 crores and value of exports is Rs 1,200 crores, then the value of imports would be:

Rs 900 crores

Rs 1,500 crore

Rs 300 crores

Rs 1,200 crore

#28. ‘Abolition of intermediaries’ and ‘Land Ceiling’ are part of:

Banking reforms in India

External reforms in India

Land reforms in India

Industrial sector reforms in India

#29. Under Managed Floating Exchange Rate System, if rupee is getting depreciated fast then RBI:

Print more currency notes

Purchase dollars in the foreign exchange market

None of the above

Sells dollars in the foreign exchange market

#30. Choose the correct alternative showing chronological order of the following events: 1- World Trade organization, 2- Opening of Suez Canal , 3- State Bank of India 4- PMEGP

II, III, I, IV

IV, II, III, I

III, IV, I, II

I, IV, III, II

#31. Read the following statements: Assertion (A) and Reason(R). Choose one of the correct alternatives given below: Assertion(A): Repayment of borrowings is a capital expenditure. Reason(R): Capital expenditure reduces a liability of the government.

Both Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of Assertion(A).

Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of Assertion(A).

Assertion(A) is false but Reason(R) is true

Assertion(A) is true but Reason(R) is false.

#32. Which economy produces only the consumer goods that can be sold in the domestic or foreign market profitably?

Mixed economy

Capitalist economy

None of the above

Socialist economy

#33. Read the following statements: Assertion (A) and Reason(R). Choose one of the correct alternatives given below: Assertion(A): Autonomous transactions are independent of the state of BOP account. Reason(R): Autonomous items are also known as above the line items. Alternatives:

Both Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of Assertion(A).

Assertion(A) is false but Reason(R) is true

Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of Assertion(A).

Assertion(A) is true but Reason(R) is false.

#34. The government budget has a revenue deficit. This gets financed by: a) Borrowing, B) Disinvestment, C) Tax revenue, D) Indirect taxes Choose Two Answers Like a and c or b and d .

Borrowing

Indirect taxes

Tax revenue

Disinvestment

#35. In India, which of the following organization regulate the health sector?

UGC

ICMR

None of these

AICTE

#36. Read the following statements: Assertion (A) and Reason(R). Choose one of the correct alternatives given below: Assertion (A): Every year, government fixes a target for disinvestment of public sector Enterprises (PSEs). Reason(R): Disinvestment is an excellent tool for discarding the loss incurring Public Sector Enterprises (PSEs). Alternatives:

Assertion(A) is true but Reason(R) is false.

Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of Assertion(A).

Assertion(A) is false but Reason(R) is true

Both Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of Assertion(A).

#37. What was the share of education in total government expenditure in 2014?

0.64 percent

15.7 percent

7.92 percent

3.31 percent

#38. India entered the ______________ stage of Demographic Transition after the year 1920.

First

Second

Fourth

Third

#39. The scheme of “Micro Finance “is extended through:

Self-help groups

Regional Rural Banks

NABARD

Land Development Banks

#40. When the government wants to strengthen the rupee, it ___ foreign currency and _ domestic currency.

Buys, buys

Sells, buys

Buys, sells

Sells, sells

Finish

Results

Click Here to Join Our Telegram Channel

Best Deals for Teachers and Students - Know More Shop Now

Term 1 Examination Practice Paper – ECONOMICS Class XII

#1. The main aim of monetary policy is _________.

#2. How much loan was provided by World Bank and IMF during the nineties to bail India out of the crisis?

#3. ___________ refers to poverty of people, in comparison to other people, regions or nations.

#4. The expenditure by the government on education is expressed as:

#6. Identify the tax whose burden can be shifted:

#7. ____________ poor are the ones who regularly move in and out of poverty.

#8. Outsourcing is good for India because:

#9. In which year, India adopted High Yielding Varieties programme for the first time.

#10. Which of the following is a non- farm area of employment?

#11. What is the duration of Union Budget?

#12. ____________ involves deregulation and reduction of government controls and greater autonomy of private investment, to make economy more competitive.

#13. Deposit Creation by banks comes to an end when:

#14. In a government budget, revenue deficit is Rs 50,000 crores and borrowings are Rs 75,000 crores. The fiscal deficit will be:

#15. From the set of statements given in Column I and Column II, choose the correct pair of statements:

#16. Which of the following statement is false in the context of industrial sector during British rule?

#17. If the total deposits created by commercial banks is Rs 10,000 crores and legal reserve requirements is 40%, then number of initial deposits will be___________.

#18. Fees of the government college is a revenue receipt because:

#19. Which of the following industries are reserved for the public sector?

#20. Supply of money refers to _____________.

#21. Name the state which is held as a success story in the efficient implementation of milk cooperatives.

#22. If amount of initial deposits with commercial banks is Rs 3,000 crore and LRR is 25%, then total deposits created will be:

#24. ‘Import of machinery’ is recorded in ___________ account and ‘Borrowings from abroad’ is recorded in the ________ account.

#25. Which programme has been renamed as Deendayal Antayodaya Yojna?

#26. High powered money consists of:

#27. If a balance of trade is showing a deficit of Rs 300 crores and value of exports is Rs 1,200 crores, then the value of imports would be:

#28. ‘Abolition of intermediaries’ and ‘Land Ceiling’ are part of:

#29. Under Managed Floating Exchange Rate System, if rupee is getting depreciated fast then RBI:

#30. Choose the correct alternative showing chronological order of the following events: 1- World Trade organization, 2- Opening of Suez Canal , 3- State Bank of India 4- PMEGP

#31. Read the following statements: Assertion (A) and Reason(R). Choose one of the correct alternatives given below: Assertion(A): Repayment of borrowings is a capital expenditure. Reason(R): Capital expenditure reduces a liability of the government.

#32. Which economy produces only the consumer goods that can be sold in the domestic or foreign market profitably?

#33. Read the following statements: Assertion (A) and Reason(R). Choose one of the correct alternatives given below: Assertion(A): Autonomous transactions are independent of the state of BOP account. Reason(R): Autonomous items are also known as above the line items. Alternatives:

#34. The government budget has a revenue deficit. This gets financed by: a) Borrowing, B) Disinvestment, C) Tax revenue, D) Indirect taxes Choose Two Answers Like a and c or b and d .

#35. In India, which of the following organization regulate the health sector?

#37. What was the share of education in total government expenditure in 2014?

#38. India entered the ______________ stage of Demographic Transition after the year 1920.

#39. The scheme of “Micro Finance “is extended through:

#40. When the government wants to strengthen the rupee, it _________ foreign currency and _______ domestic currency.

Results

9 thoughts on “Term 1 Examination Practice Paper – ECONOMICS Class XII”

Leave a Comment Cancel reply

Latest News

#24. ‘Import of machinery’ is recorded in ___ account and ‘Borrowings from abroad’ is recorded in the account.

#40. When the government wants to strengthen the rupee, it ___ foreign currency and _ domestic currency.