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

CLICK on Start Quiz for Live Test.

QUIZ START

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

UGC

None of these

AICTE

ICMR

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

None of the above

Socialist economy

Capitalist economy

Mixed economy

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

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

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

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

Export of software to France + Debit side of current account

#4. 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 2,000 crores

Rs 4,000 crores

Rs 14,000 crores

Rs 3,000 crores

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

Neither a nor b

Both a and b

Percentage of total government expenditure

Percentage of National Income

#6. Supply of money refers to _____________.

Currency held by RBI

Currency held in the government account

Currency held by the public

Currency held by the public and demand deposits with commercial banks

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

Liberalization

Privatization

Globalization

None of these

#8. 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

I, IV, III, II

III, IV, I, II

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

Rs 9,000 crore

Rs 6,000 crore

Rs 12,000 crore

Rs 750 crore

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

There was low contribution of industries to GDP

The British Government promoted capital goods industries

There was decline in handicraft industries

Public sector played significant role

#11. What is the duration of Union Budget?

Annual

Half-yearly

Two years

Five years

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

Land reforms in India

External reforms in India

Industrial sector reforms in India

Banking reforms in India

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

Chronic

None of these

Occasionally

Churning

#14. 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).

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

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).

#15. Outsourcing is good for India because:

It provides employment to large number of unemployed

Both a and b

Neither a nor b

It provides excellence in a particular field

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

Fresh Deposits with banks become zero.

Money Multiplier becomes zero

Legal Reserve Ratio becomes zero

Total Cash Reserves becomes equal to initial Deposits

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

Both a and b

Defense aircraft and warships

Atomic energy generation

Cement

#18. 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.

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).

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

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

Gujarat

Jammu and Kashmir

Maharashtra

Andhra Pradesh

#20. High powered money consists of:

Currency, cash reserves with banks and demand deposits

Currency held by public and cash reserves with banks

Currency and demand deposits

Currency and coins held by the public

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

First

Fourth

Third

Second

#22. 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:

None of them

Discriminatory tariff policy of the state

Introduction of railways in India

All of them

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

NABARD

Regional Rural Banks

Land Development Banks

Self-help groups

#24. 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

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

Rs 25,000 crores

Rs 50,000 crores

Rs 75,000 crores

Rs 1,25,000 crores

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

PMRY - Pradhan Mantri Rozgar Yojana

SGSY - Swarnjayanti Gram Swarozgar Yojana

REGP - Rural Employment Generation Programme

NRLM - National Rural Livelihoods Mission

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

Buys, sells

Buys, buys

Sells, buys

Sells, sells

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

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

It increases asset of the government.

It creates liability of the government.

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

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

$ 10 billion

$ 10 million

$ 7 billion

$ 20 billion

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

To increase trade surplus

To bring price stability in the economy

To generate greater tax revenue

Employment generation in the country

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

Horticulture

All of these

Livestock farming

Fisheries

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

Capital, current

Current, capital

Capital, capital

Current, current

#33. 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 1,200 crore

Rs 300 crores

Rs 1,500 crore

Rs 900 crores

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

3.31 percent

15.7 percent

7.92 percent

0.64 percent

#35. 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 .

Tax revenue

Indirect taxes

Borrowing

Disinvestment

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

1966

1977

1956

1986

#37. 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:

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

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).

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

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

Purchase dollars in the foreign exchange market

None of the above

Sells dollars in the foreign exchange market

Print more currency notes

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

Corporate tax

Income tax

Goods and Services Tax

None of these

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

Absolute poverty

Both a and b

Neither a nor b

Relative poverty

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

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

#4. 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___________.

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

#6. Supply of money refers to _____________.

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

#8. 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

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

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

#11. What is the duration of Union Budget?

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

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

#14. 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.

#15. Outsourcing is good for India because:

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

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

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

#20. High powered money consists of:

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

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

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

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

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

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

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

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

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

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

#33. 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:

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

#35. 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 .

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

#37. 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:

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

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

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

Results

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

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