Money Market and Capital Market in India — Economics STD 12 Commerce / Arts — Question

(A) : A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity.
Reasoning (R) : Changes in consumers income leads to a change in the quantity demanded.

Market demand.
(a) Aggregate demand
(b) Macro economics
(c) Micro economics
(d) Lumping method

Scope of Macro economics.
(a) Theory of Income and employment
(b) Theory of General Price level and inflation
(c) Theory of Economic growth and development
(d) Theory of Factor Pricing

International or External trade takes place between –
(a) two or more districts
(b) two or more states
(c) two or more countries
(d) none of these

Central Bank has the ………….. of cash reserve of commercial Bank in the country.

How does purchasing power changes with the increase in price level?
(a) Remains unchanged
(b) Increases
(c) Decreases
(d) None of these

Choose the right group of pairs :

Group ‘A’	Group ‘B’
1. Fines and Penalties	(a) Use of domestic currency
2. Tax	(b) Violation of the law
3. internal debt	(c) French word
4. Bougette	(d) Major source of government revenue

The term ‘micro’ and ‘macro’ economics were first coined and used by Norwegian Economist.
(a) Adam Smith
(b) Ragnar Frisch
(c) Dr. Marshall
(d) Prof. Ricardo

National income is a …………… concept

(A) : Foreign exchange management and control is undertaken by commercial banks.
Reasoning (R) : RBI has to maintain the official rate of exchange of rupee and ensure its stability.