Government Budget and Economy — Economics STD 12 Humanities & Commerce — Question

Which exchange rate measures the average relative strength of a given currency with respect to other currencies without eliminating the effect of change in price?

1. Nominal exchange rate.
2. Nominal effective exchange rate.
3. Real exchange rate.
4. Real effective exchange rate.

If a commodity has large number of substitute goods, then its demand would be:

1. Unitary elastic.
2. Perfectly elastic.
3. Perfectly inelastic.
4. More than unitary elastic.

A government shows a primary deficit of 34400 crore. The revenue expenditure on interest payment is 400 crore. How much is the fiscal deficit?

1. 4000 crore.
2. 4800 crore.
3. 4400 crore.
4. 400 crore.

Change in supply refers to:

1. An upward or downward shift in supply curve.
2. An upward shift in supply curve.
3. An upward or downward movement along the supply curve.
4. A downward movement along the supply curve.

Money supply in India is:

1. Currency with the public.
2. Demand deposits with the banks.
3. Currency with the public + Demand deposits with the banks.
4. None of them.

In the first stage of law of variable proportions, Total Product increases at an ________________.

1. Decreasing rate.
2. Increasing rate.
3. Constant rate.
4. Both (a) and (b).

Capital receipts may come from:

1. Market borrowings.
2. Provident funds.
3. Recoveries of loans.
4. All of them.

Which one of the following items is an intangible item in balance of payments statement?

1. Export of food grains.
2. Import of crude oil.
3. Banking services provided in other countries.
4. Import of steel by steel industry.

Central Bank of a country does not deal with .......

1. state Government.
2. general public.
3. central Government.
4. commercial banks.

An increase in quantity supplied refers to a situation where the producers are willing to supply:

1. A larger quantity of the commodity at decreased price.
2. A larger quantity of the commodity at increased price of inputs.
3. A larger quantity of the commodity at increased price of related goods.
4. A larger quantity of the commodity at increased price.