Banking — Economics STD 12 — Question

Income Tax is an example of ………………………….

Assertion (A): Keynes Law of propositions – when Income increases, consumption expenditure also increases but by a smaller amount.
Reason (R): Keynes Law of propositions – Increase in Income always lead to an increase in both consumption and saving.

Write the Four Sector Model of National Income?

Match the following :
A. Labour Income – (i) Profit and Interest
B. Capital Income – (ii) Domestic Factor Income
C. Mixed Income – (iii) Wages and Salaries
D. National Income – (iv) Farming, Sole proprietorship

Assertion (A): FDI is an Domestic Economy.
Reason (R): FDI is an Global Economy.

The New Export Import policy was implemented in ………………………..

MEI is the expected rate of return on investment as additional units of ……………………

Assertion (A): Credit creation leads to increase in production.
Reason (R): Credit creation means the multiplication of loans and advances.

Assertion (A): Price of a commodity is measured by the amount of labour required to produce it.
Reason (R): Trade is one of the Demerit.

Match the following :
A. Saving Deposits – (i) Official minimum rate
B. Cash credit – (ii) Cheque facilities
C. Bank rate – (iii) Facility to business man
D. Over draft – (iv) Collateral security