Money and Banking — Economics STD 12 Commerce — Question

What possible fiscal policy measures can be taken with respect to expenditure and income to correct (i) Excess demand and (ii) Deficient demand in the economy.

A person claims that he should be exempted from tax payment as he does not use any government services in general. Should the person be allowed to do so?

Explain the significance of 'medium of exchange' function of money.

Define average propensity to save and marginal propensity to save. Can the value of average propensity to save be negative? Give reasons for your answer.

Giving reason, classify the into intermediate or final goods.
Cotton used by a cloth mill.

Where is 'borrowings from abroad' recorded in the Balance of Payments Accounts? Give reasons.

Discuss some of the exchange rate arrangements that countries have entered into to bring about stability in their external accounts.

When exchange rate of foreign currency falls, its demand rises. Explain, how?

When price of a foreign currency falls, the supply of that foreign currency also falls. Explain, why.

Which among the following are capital goods and which are consumer goods and why?

1. A car used as a taxi.
2. Refrigerator in a hotel.
3. Air-conditioner in a house.