Money and Banking — Economics STD 12 Humanities & Commerce — Question

Giving reasons, state whether the following statements are true or false.
Purchase of car by a consumer is a part of gross domestic capital formation.

Supply of foreign exchange is positively related to the price of foreign exchange. (True/ False)

Gross demand deposits are not a part of money supply while net deposits are. (True/ False)

State whether the following statements are true or false. Give reasons for your answer:
The value of marginal propensity to save can never be negative.

Giving reason, state whether the following statements are true or false.
Television is a capital good.

Accommodating items do not cause any movement of goods and services across the borders. (True/ False)

Giving reasons, state whether the following statements are true or false.
Exports are a part of net factor income from abroad.

Commercial banks are the principal suppliers of money in India. (True/ False)

Giving reasons, state whether the following statements are true or false.
Brokerage paid on sale of shares and income from shares purchased is not a part of national income.

State whether the following statements are true or false. Give reasons for your answer:
When marginal propensity to consume is greater than marginal propensity to save, the value of investment multiplier will be greater than 5.