Open Economy Macroeconomics — Economics STD 12 Humanities & Commerce — Question

Giving reasons, state whether the following statements are true or false:A fall in the price of 1 US dollar from ₹ 50 to ₹ 40 means depreciation of the Indian currency.

Giving reasons, state whether the following statements are true or false.
Change in stock is not a part of Capital formation.

When consumption function is: C = 50 + 0.6Y, saving will be equal to -30 Y = 0 to the negative expression of C. Hence, when C - 50, S will be equal to -50. (True/ False)

Giving reasons, state whether the following statements are true or false.
Increase in statutory liquidity ratio adversely affects the capacity of commercial banks to create credit.

Giving reasons, state whether the following statements are true or false.
Money supply does not include money held by government and banking system.

Balance of trade is the difference between export of services and import of services of a country. (True/ False)

Average propensity to save is always greater than zero. (True/ False)

When exports = ₹ 20,000 and imports = ₹ 35,000, value of net exports will be equal to ₹ 15,000. (True/ False)

Giving reasons, state whether the following statements are true or false.
Under marginal requirement, the Reserve Bank of India gives directions to other banks to channelise credit to priority sectors.

Giving reasons, state whether the following statements are true or false.
In a closed economy, gross national product is always equal to gross domestic product.