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.

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

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QUIZ START

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

ICMR

AICTE

UGC

None of these

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

REGP - Rural Employment Generation Programme

PMRY - Pradhan Mantri Rozgar Yojana

NRLM - National Rural Livelihoods Mission

SGSY - Swarnjayanti Gram Swarozgar Yojana

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

Buys, sells

Sells, buys

Buys, buys

Sells, sells

#4. 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 1,200 crore

Rs 300 crores

Rs 1,500 crore

#5. Supply of money refers to _____________.

Currency held by the public and demand deposits with commercial banks

Currency held in the government account

Currency held by the public

Currency held by RBI

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

None of the above

Sells dollars in the foreign exchange market

Purchase dollars in the foreign exchange market

Print more currency notes

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

Absolute poverty

Both a and b

Relative poverty

Neither a nor b

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

The British Government promoted capital goods industries

Public sector played significant role

There was low contribution of industries to GDP

There was decline in handicraft industries

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

3.31 percent

0.64 percent

15.7 percent

7.92 percent

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

Rs 12,000 crore

Rs 6,000 crore

Rs 9,000 crore

Rs 750 crore

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

Money Multiplier becomes zero

Fresh Deposits with banks become zero.

Total Cash Reserves becomes equal to initial Deposits

Legal Reserve Ratio becomes zero

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

Rs 75,000 crores

Rs 25,000 crores

Rs 50,000 crores

Rs 1,25,000 crores

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

Current, current

Capital, current

Current, capital

Capital, capital

#14. 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:

Duty free exports and imports

Heavy duty on imports and duty-free export

Heavy duty on imports and exports

Heavy duty on exports and duty-free import

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

Atomic energy generation

Defense aircraft and warships

Cement

Both a and b

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

Fisheries

All of these

Horticulture

Livestock farming

#17. What is the duration of Union Budget?

Two years

Annual

Half-yearly

Five years

#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. 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:

Introduction of railways in India

Discriminatory tariff policy of the state

All of them

None of them

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

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

Export of software to France + Debit side of current account

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

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

1956

1977

1986

1966

#22. High powered money consists of:

Currency held by public and cash reserves with banks

Currency, cash reserves with banks and demand deposits

Currency and demand deposits

Currency and coins held by the public

#23. Outsourcing is good for India because:

Both a and b

It provides excellence in a particular field

It provides employment to large number of unemployed

Neither a nor b

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

Neither a nor b

Both a and b

Percentage of National Income

Percentage of total government expenditure

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

Churning

None of these

Occasionally

Chronic

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

$ 20 billion

$ 7 billion

$ 10 billion

$ 10 million

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

Second

Fourth

First

Third

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

To increase trade surplus

To generate greater tax revenue

To bring price stability in the economy

Employment generation in the country

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

Maharashtra

Jammu and Kashmir

Gujarat

Andhra Pradesh

#30. 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 .

Indirect taxes

Disinvestment

Borrowing

Tax revenue

#31. 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

III, IV, I, II

I, IV, III, II

II, III, I, IV

IV, II, III, I

#32. 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.

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.

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

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

Land Development Banks

NABARD

Regional Rural Banks

Self-help groups

#34. 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 2,000 crores

Rs 14,000 crores

Rs 4,000 crores

#35. 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 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).

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

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

Goods and Services Tax

Income tax

None of these

Corporate tax

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

None of these

Globalization

Privatization

Liberalization

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

None of the above

Socialist economy

Mixed economy

Capitalist economy

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

Land reforms in India

Industrial sector reforms in India

External reforms in India

Banking reforms in India

#40. 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:

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

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

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

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

Finish

Results

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Term 1 Examination Practice Paper – ECONOMICS Class XII

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

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

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

#4. 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:

#5. Supply of money refers to _____________.

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

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

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

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

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

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

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

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

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

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

#17. What is the duration of Union Budget?

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

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

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

#22. High powered money consists of:

#23. Outsourcing is good for India because:

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

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

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

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

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

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

#30. 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 .

#31. 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

#32. 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.

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

#34. 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___________.

#35. 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:

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

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

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

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

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

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