MCQS-QUESTI

ONBANK(
2021-
2022)
(
Aspert
hel
atestgui
del
i
neandsampl
epaperofCBSE)
CLASS–XII
TERM –I
ECONOMI
CS(
INDI
ANECONOMI
CDEVELOPMENT &MACROECONOMI
CS)

I
NDI
ANECONOMI
CDEVELOPMENT
TERM I

CHAPTER1:
INDI
ANECONOMYONTHEEVEOFI
NDEPENDENCE

1. Readt
hef
oll
owi
ngst
atement
scar
eful
l
yandchooset
hecor
rectal
ter
nat
ivesgi
ven
bel
ow:
St
atement1–Decl
i
nei
nmor
tal
i
tyr
atecomesbef
oredecl
i
nei
nfer
ti
li
tyr
ate.
St
atement2–Thesecondst
ageofdemogr
aphi
ctr
ansi
ti
oni
nIndi
aischar
act
eri
sed
bydecl
i
ningpopul
ati
on.
Al
ter
nat
ives:
a.Bot
hthest
atement
sar
etr
ue.
b.Bot
hthest
atement
sar
efal
se.
c.St
atement1i
str
ueandSt
atement2i
sfal
se
d.St
atement2i
str
ueandSt
atement1i
sfal
se

2. Ont
heev
eofi
ndependence,
wewer
eheav
il
ydependedupon:
a)expor
ts
b)i
mpor
ts
c)ei
therexpor
tsori
mpor
ts
d)nei
therexpor
tsnori
mpor
ts

3. I
nlandwat
erway
sbui
l
tbyt
heBr
it
ishpr
ovedt
obe_
___
_andanexampl
eoft
hisi
s
_
___
_
a.Economi
cal
,Agr
acanal
b.Uneconomi
cal
,Agr
acanal
c.Economi
cal
,Coast
alcanal
ont
heOr
issacoast

1
d.Uneconomi
cal
,Coast
alcanal
ont
heOr
issacoast

2
Q.
Nos.4t
o6hav
etobeanswer
edont
hebasi
sofReadi
ngt
hef
oll
owi
ng:

Ms.Tani
a Mal
hot
rai
sat
eacher
.Shesai
dthef
oll
owi
ngi
noneofherl
ect
ure,
”Indi
a
r
emai
nedanagr
icul
tur
alcount
ryt
hroughoutt
heBr
it
ishcol
oni
alper
iod.Thegr
owt
hof
GDP wasv
erysl
ow.Theagr
icul
tur
alsect
orwasal
sost
agnantl
argel
yduet
oLand
set
tl
ementsy
stem,
whi
chwasest
abl
i
shedf
orser
vingBr
it
ishi
nter
est
.”

4. Thegr
owt
hrat
eofI
ndi
a’
sGDPi
nthecol
oni
alper
iodbef
orei
ndependencewas:
a.Lesst
han2%
b.Mor
ethan2%
c.Bet
ween3%and5%
d.Abov
e5%

5. I
ndi
a’
spercapi
tai
ncomegr
owt
hrat
eint
hesameper
iodwas:
a.0.
2%
b.2%
c.0.
5%
d.1%

6. Landset
tl
ementsy
stem abov
eref
erst
o:
a.Landr
efor
ms
b.Landceil
i
ng
c.Fragmentati
onofland
d.Zamindarisyst
em

7. Arranget hefoll
owingev entinthecorrectchr
onol
ogicalor
der
:( Chooset
he
cor
rect ar r
angements)
i
.Fi rstoffici
alcensus
i
i.Indiawaswel lknownforit
shandi
craf
tproduct
sall
overthewor
ld
i
i.Amp
i utatedeconomy
i
v.Op eningofSuezCanal
Alt
ernat
ives:
a.i
i,i
v,i
,i
ii
b.i
i
,i
ii
,
I,
iv
c.i
i
i,i
v,
I,
i
i
d.i
v,
ii
i
,I
,i
i
8. ___
___
___
___
___
-recor
dedani
ncr
easei
nwor
kfor
ceengagedi
nagr
icul
tur
esect
or:
a.Raj
ast
han
b.Ker
ala
c.Punj
ab
d.Bot
haandb

3
Q.
Nos.9and10hav
etobeanswer
edont
hebasi
sofReadi
ngt
hef
oll
owi
ngexcer
pts
f
rom ar
ti
clewr
it
tenbyRaghabendr
aChat
opadhay
ain1975:

Dani
elThor
nerdi
scussedt
hecaseof“
de-
indust
ri
ali
sat
ioni
nIndi
a”.Hesai
d,”i
tisa
t
hreef
oldpr
oposi
ti
ont
otheef
fectt
hatt
hedecl
i
neofhandi
craf
tindust
ri
escont
inued
wel
lint
othet
went
iet
hcent
ury
,thati
twasnotcompensat
edbyasuf
fi
cientr
iseof
moder
nindust
ryand t
hat
,in consequence,t
he economybecame mor
e and mor
e
agr
icul
tur
al.
”

9. De-
indust
ri
ali
zat
ioni
nIndi
awasduet
o;
a.Thef
eudal
nat
ureofI
ndi
aneconomy
b.Di
scr
imi
nat
oryt
ari
ffpol
i
cy
c.Bui
l
dingofr
ail
way
sbyt
heBr
it
ish
d.Noneoft
heabov
e

10.Thepur
posebehi
ndde-
indust
ri
ali
zat
ionwas:
a.TomakeI
ndi
aasour
ceofcheapr
awmat
eri
al;
\l
b.TomakeI
ndi
aamar
ketf
orBr
it
ishgoods
c.Bot
haandb
d.Noneoft
heabov
e.

ANSWERKEY:1.(
c),
2.(
b),
3(c)
,4.(
a),
5.(
c),
6.(
d),
7.(
a),
8.(
d),
9.(
b),
10(
c)

4
 CHAPTER2:
INDI
ANECONOMY(
1950-
1990)
1.Readt
hef
oll
owi
ngst
atement
s-Asser
ti
on(
A)andReason(
R):
Asser
ti
on(
A)–I
ndi
a’
spl
anner
sandpol
i
tici
anadopt
edCapi
tal
i
steconomybecause
i
tpr
omot
essel
fint
erestandr
espect
sconsumersov
erei
gnt
y
Reason(
R)– Ourpl
anner
sandpol
i
tici
anwer
enoti
nfav
ourofsuppr
essi
ngsel
f
i
nter
estandconsumer
’ssov
erei
gnt
y.
Fr
om t
hegi
venal
ter
nat
iveschooset
hecor
rectone:
Al
ter
nat
ives:
a)Bot
h Asser
ti
on (
A)and Reason (
R)ar
etr
ue and Reason (
R)i
sthe cor
rect
expl
anat
ionofAsser
ti
on(
A).
b)Bot
hAsser
ti
on(
A)andReason(
R)ar
etr
ueandReason(
R)i
snott
hecor
rect
expl
anat
ionofAsser
ti
on(
A).
c)Asser
ti
on(
A)i
str
uebutReason(
R)i
sfal
se.
d)Asser
ti
on(
A)i
sfal
sebutReason(
R)i
str
ue.*

2.Readt
hef
oll
owi
ngst
atement
scar
eful
l
yandchooset
hecor
rectal
ter
nat
ivesgi
ven
bel
ow:
St
atement1–Moder
nizat
ionofI
ndi
aneconomyi
sal
ongt
erm goal
ofpl
anni
ng.
St
atement2–Moder
nizat
ioni
nvol
vesonl
yadopt
ingofmoder
ntechnol
ogy
.
Alt
ernat
ives:
a.Boththestat
ement
sar
etr
ue.
b. Bot
hthest
atement
sar
efal
se.
c.St
atement1i
str
ueandSt
atement2i
sfal
se*
d.St
atement2i
str
ueandSt
atement1i
sfal
se

Q.
Nos.3t
o5hav
etobeanswer
edont
hebasi
sofReadi
ngt
hef
oll
owi
ng :

Towar
dst
heendof1960st
her
ewasawi
despr
eadopi
nionatt
hegov
ernment
all
evel
andi
nacademi
cci
rcl
est
hataconsi
der
abl
epr
ogr
essi
nLandRef
ormshadgr
adual
l
yand
al
most i
mper
cept
ibi
l
ytr
ansf
ormed t
he semif
eudalagr
ari
an st
ruct
ure of pr
e-
i
ndependenceI
ndi
aint
olar
gel
yfar
meror
ient
edEconomy
.Thecl
aimsi
nthepr
ogr
essi
n
Landr
efor
mswer
etwof
old.Fi
rst
,thei
nter
medi
arysy
stem wasabol
i
shedbr
ingi
nga
l
argeswat
heoff
armer
sint
odi
rectowner
shi
poft
hel
andt
heycul
ti
vat
ed.Second,
many
st
atesensur
edcompl
etet
ransf
erofl
andt
othet
il
ler
s.Butt
her
ewer
esomear
east
hat
di
dnotbenef
itasmuchandi
tdi
dnotbenef
itt
hepoor
estofagr
icul
tur
all
abour
ers.

3.Aboli
ti
on ofi
nter
medi
ari
es br
ought
___
_lakh t
enent
sint
o di
rectcont
actwi
th
Gov
ernment.
a.250
b.200
5
 c.150
d.100

4.Thest
ateswhi
chwer
esuccessf
uli
nLandRef
ormswer
e:
a.WestBengal
,Ker
ala
b.Madhy
aPr
adesh,
Kar
nat
aka
c.WestBengal
,Raj
ast
han
d.Ker
ala,
Bihar

5.TheLandr
efor
mswer
enotsuccessf
uli
nsomear
easbecause:
a.Tenant
swer
enoteagert
oassumeowner
shi
pofl
and
b.For
merowner
smadeuseofl
egal
loophol
es
c.Bot
haandb
d.Noneoft
heabov
e

6.Fr
om t
hesetofgi
venst
atement
sincol
umnIandCol
umnI
I,
choosecor
rectpai
rof
st
atement
s:(
Chooset
hecor
rectal
ter
nat
ive)
Col
umnI Col
umnI
I

A On the ev e of i
. Thebal
anceoft
radewasf
avor
abl
e
i
ndependence

B I
nter
nat
ional
trade i
i
. Exportandimpor
tofgoodsandser
vices
wit
hinthedomest
ict
err
it
ory

C Expor
tpr
omot
ion i
i
i. A str
ategyto earnforei
gn exchange by
promoti
ngexportofdomesti
cal
lyproduced
goodsandservi
ce

D Quot
a i
v. Dir
ect
lyi
ncreases t
he pr
ice ofi
mpor
ted
commodi
ti
es

a)A-
i
b) B-
ii
c)C-
ii
i*
d) D-
iv

7.Lat
entr
esour
cesr
efert
o:
a.Resour
cesusedf
orout
put
b.Resour
cest
hatar
eexhaust
ed
c.Pot
ent
ial
resour
cesofacount
ry
d.Noneoft
heabov
e

6
8.I
ndust
ri
es(
Dev
elopmentandRegul
ati
onAct
)wast
o__
__andwasenact
edi
nthe
y
ear
___
a.Der
egul
atei
ndust
ri
es,
1975
b.Li
censei
ndust
ri
es,
1958
c.Regul
atei
ndust
ri
es,
1965
d.Li
censei
ndust
ri
es,
1951*
9.Mat
cht
hesi
tuat
ionsgi
veni
nCol
umnIwi
tht
hei
rrespect
ivei
mpl
i
cat
ionsgi
veni
n
Col
umn I
I:(
Chooset
hecor
rectal
ter
nat
ive)
Col
umnI Col
umnI
I

A HYVseeds i
. Lack of i
nter
nat
ional st
andar
d of domest
ic
pr
oducer
s

B Smal
l scal
e i
i
. I
ncr
easedi
ncomei
nequal
i
ty
i
ndust
ri
es

C Publ
i
csect
or i
i
i. Gener
atedempl
oyment

D I
mpor
tsubst
it
uti
on i
v. Br
oughtsoci
alequi
tyt
oadegr
ee

a.A-
ii
;B-
ii
i;
C-i
v;D-
i*
b.A-
ii
i;
B-i
v;C-
i;
D-i
i
c.A-
i;
B-i
i
;C-
ii
i;
D-i
v
d.A-
ii
;B-
iv,
C-i
;D-
ii
i

10.Whoi
scal
l
edt
hef
atherofgr
eenr
evol
uti
on?
a.M.S.Swami
nat
han
b.ManmohanSi
ngh
c.P.C.Mahal
anobi
s
d.Nor
manBor
laug*

ANSWERKEY:1.(
d),
2.(
c),
3(b)
,4.(
a),
5.(
b),
6.(
c),
7.(
c),
8.(
a),
9.(
d),
10(
d)

7
 CHAPTER3:
LI
BERALI
SATI
ON,
PRI
VATI
SATI
ONANDGLOBALI
SATI
ON;
ANAPPRAI
SAL

1.Tr
adeandi
nvest
mentpol
i
cyr
efor
msf
ocusedon:
a.Br
ingi
ngef
fi
cientf
orei
gnt
echnol
ogyi
ntot
heeconomy
b.I
ncr
easi
ngi
nter
nat
ional
compet
it
ivenessoft
hedomest
ici
ndust
ry
c.I
nduci
ngf
orei
gni
nvest
menti
nthedomest
iceconomy
d.Al
loft
hese

2.Cont
ract
ionofpubl
i
csect
ori
sameasur
eof
:
a.l
i
ber
ali
zat
ion
b.Gl
obal
i
zat
ion
c.Pr
ivat
izat
ion
d.Noneoft
hese

3.Non-
tar
if
fbar
ri
ersr
efert
o:
a.quot
abar
ri
ers
b.r
est
ri
cti
onsont
hequant
um ofi
mpor
ts
c.quant
it
ati
veal
loft
heser
est
ri
cti
onsoni
mpor
ts
d.Noneoft
heabov
e

4.Fi
scal
pol
i
cyr
efer
sto:
a.r
evenueandexpendi
tur
epol
i
cyoft
hegov
ernment
b.t
hepol
i
cypur
suedbyt
hecent
ralbankt
oregul
atesuppl
yofmoneyi
nthe
economy
c.apol
i
cyt
hatseekst
o achi
evest
abi
l
ityi
ntheeconomybymanagi
ng t
he
r
evenueandexpendi
tur
eoft
hegov
ernment
d.bot
h(a)and(
c)

5.Needf
orpr
ivat
izat
ionar
isesbecauseof
:
a.poorper
for
manceofpr
ivat
esect
orent
erpr
ises
b.poorper
for
manceofpubl
i
csect
orent
erpr
ises
c.l
ackoff
orexr
eser
ve
d.noneoft
hese

6.Hi
gherdegr
eeOfconsumer
s'sov
erei
gnt
yimpl
i
es:
a.wi
derchoi
ce
b.bet
terqual
i
tyofl
i
fe
c.hi
gherpr
ofi
t

8
 d.bot
h(a)and(
b)
7.Fol
l
owedbydev
aluat
ioni
n1991,
Indi
aopt
edf
or:
a.f
ixedexchanger
atesy
stem
b.f
loatexchanger
atesy
stem
c.Br
ett
onwoodssy
stem ofexchanger
ate
d.gol
dst
andar
dsy
stem ofexchanger
ate

8.Whi
choft
hef
oll
owi
ngi
sagoodef
fectofLPGpol
i
ciesont
heI
ndi
aneconomy
?
a.Vi
branteconomy
b.Consumer
'ssov
erei
gnt
y
c.I
ncr
easei
nfor
eignexchanger
eser
ves
d.Al
loft
hese

9._
___
___
___
incr
easest
hedependenceoft
hedomest
iceconomyuponr
estoft
he
wor
ld.
a.Gl
obal
i
zat
ion
b.Li
ber
ali
zat
ion
c.Pr
ivat
izat
ion
d.Noneoft
hese

10.Di
si
nvest
menti
susedasameanst
omanage:
a.r
evenuedef
ici
tbyt
hegov
ernment
b.f
iscal
def
ici
tbyt
hegov
ernment
c.Pr
imar
ydef
ici
tbyt
hegov
ernment
d.noneoft
hese

11.I
ndi
aisemer
gingasani
mpor
tantdest
inat
ionofout
sour
cingbecauseof
:
a.av
ail
abi
l
ityofcheapl
abori
nIndi
a
b.r
evol
uti
onar
ygr
owt
hofI
Tindust
ryi
nIndi
a
c.r
elat
ivel
ylowwager
atef
ort
heski
l
ledwor
ker
s
d.al
loft
hese

12.Whi
choft
hef
oll
owi
ngi
saadv
ant
ageofWTO?
a.Pr
omot
escompet
it
ioni
nthei
nter
nat
ional
mar
ket
b.Faci
l
itat
esbi
l
ater
alaswel
lasmul
ti
lat
eralt
radeagr
eement
samongt
hemember
count
ri
es
c.Pr
omot
esf
reet
radei
nthei
nter
nat
ionalmar
ketbyr
emov
ingt
ari
ffandnon-
tar
if
f
bar
ri
ers
d.Al
loft
hese

9
10
Readthefoll
owi
ngcasestudycar
eful
lyandanswerthequestions14onthebasi
sof
thesame:
I
ndustr
iall
i
censi
ngwhichwasearl
ierappl
icabl
eforal
lindust
ri
esexceptadef
inedl
ist
wasabol
i
shedf
oral
lbuthandf
ulofi
ndust
ri
es.Thi
smeanti
nvest
menti
nnewpl
ant
s
andcapaci
tyexpansi
oni
nexi
sti
ngpl
ant
scoul
dnow beunder
takenf
orav
erywi
de
r
angeofi
ndust
ri
eswi
thoutanyappr
ovalt
hecent
ralgov
ernment
.Si
ncet
he abol
i
tion
ofi
ndust
ri
all
i
censesmeantt
hatl
ocat
ionofi
ndust
ri
esi
sfort
hei
nvest
orst
odeci
de,
set
ti
ngt
hest
agef
ordi
ff
erentSt
atest
ocompet
ewi
theachOt
hert
oat
tractpr
ivat
e
i
nvest
ment
.Ear
li
er,t
heMonopol
i
esRest
ri
cti
vet
radePr
act
ices(
MRTI
'
)Actpr
ovi
ded
t
hatal
li
nvest
ment
sbycompani
eswi
tht
otalasset
sexceedi
ng1bi
l
li
onneededspeci
al
scr
uti
nyt
oensur
ethati
twoul
dnoti
ncr
easeconcent
rat
ionofeconomi
cpower
.These
r
est
ri
cti
ons wer
e abol
i
shed and t
he MRTP Act was t
o be used t
o check
ant
icompet
it
ivebehav
iour
.For
eignDi
rectI
nvest
ment(
EDI
)wasear
li
eral
l
owedonl
yin
adef
inedl
i
stofhi
ghpr
ior
it
yindust
ri
esandeachappl
i
cat
ionneededt
obecl
ear
edon
caseby
-casebasi
s,wi
thf
orei
gnequi
tyl
i
mit
edt
o40%.FDIwasnowf
reel
yal
l
owedup
t
oint
hisl
i
standhi
gherl
i
mit
swer
econsi
der
edont
hemer
it
sofeachcase.The
gov
ernmental
soannouncedt
hati
twoul
dseekf
orei
gni
nvest
mentpr
o-act
ivel
yin
ar
easwher
eitcoul
dmakeamaj
orcont
ri
but
ion.
—Mont
ekS.Ahl
uawl
i
a,I
ndi
a'
sEconomi
cRef
orms:
Achi
evement
sandNextSt
eps,
Asi
anEconomi
cPol
i
cyRev
iew,
2018

Chooset
hecor
rectopt
ion:
14. Whi
ch oft
he f
oll
owi
ng i
s nota r
eason f
orcont
rol
s bei
ng i
mposed byt
he
gov
ernment
?
a.Tocont
rol
pri
vat
emonopol
i
es
b.Pr
ovi
sionofpubl
i
cgoods
c.Soci
alequi
ty
d.Topr
omot
ecr
owdi
ngout

15. I
ndust
ri
alsect
orr
efor
msunderNEP1991donoti
ncl
udewhi
choft
hef
oll
owi
ng?
a.Abol
i
tionofi
ndust
ri
all
i
censi
ng
b.Reser
vat
ionofpr
oduct
ionar
eas
c.Cont
ract
ionofpubl
i
csect
or
d.Ex
pansi
onofpr
oduct
ioncapaci
ty

16. Undert
henew i
ndust
ri
alpol
i
cy,numberofi
ndust
ri
esr
eser
vedf
orpubl
i
csect
or
wasr
educedf
rom:
a.10t
o8 b.18t
o8 c.17t
08 d.18t
07

11
17. Af
terl
i
ber
ali
zat
ion,f
orei
gn i
nvest
mentl
i
miti
n banks was r
aised t
o
ar
ound_
_per cent
.
a.73 b.74

c.75 d.76

18.Readt
hef
oll
owi
ngst
atement
s:Asser
ti
on(
A)andReason
Chooseoneort
hecor
rectal
ter
nat
ivesgi
venbel
ow:
Asser
ti
on(
A):
Fol
l
owi
ngl
i
ber
ali
zat
ionr
educt
ioni
ntaxr
atesl
edt
ofal
li
ntaxev
asi
on.
Reason(
R):Reducedt
axr
atepav
eswayf
ort
axcompl
i
anceandt
her
efor
e
gr
eat
ert
axr
evenuef
orgov
ernment
.
Al
ter
nat
ives:
a.Bot
hAsser
ti
on(
A)andReason(
R)ar
etr
ueandReason(
R)i
sthecor
rect
expl
anat
ionofAsser
ti
on(
A)
b.Bot
hAsser
ti
on(
A)andReason(
R)ar
etr
ueandReason(
R)i
snott
he
cor
rectexpl
anat
ionofAsser
ti
on(
A)
c.Asser
ti
on(
A)i
str
uebutReason(
R)i
sfal
se
d.Asser
ti
on(
A)i
sfal
sebutReason(
R)i
str
ue

19.Readt
hef
oll
owi
ngst
atement
s:
Asser
ti
on(
A)andReason(
R)
Chooseoneoft
hecor
rectal
ter
nat
ivesgi
venbel
ow:
Asser
ti
on(
A):
Thegov
ernmenti
ncr
easedt
heequi
tyl
i
mitoff
orei
gni
nvest
ment
.
Reason(
R);Wi
thi
ncr
easei
nequi
tyl
i
mit
,for
eigni
nvest
mentbot
hdi
rectand
i
ndi
rectwer
ereduced.
Al
ter
nat
ives:
a.Bot
hAsser
ti
on(
A)andReason(
R)ar
etr
ueandReason(
R)i
sthecor
rect
expl
anat
ionofAsser
ti
on(
A)
b.Bot
hAsser
ti
on(
A)andReason(
R)ar
etr
ueandReason(
R)i
snott
he
cor
rectexpl
anat
ionofAsser
ti
on(
A)
c. Asser
ti
on (
A)i
str
ue butReason (
R)i
s
f
alse
d.Asser
ti
on(
A)i
sfal
sebutReason(
R)i
str
ue

20.Readt
hef
oll
owi
ngst
atement
s—Asser
ti
on(
A)andReason(
R)
Chooseoneoft
hecor
rectal
ter
nat
ivesgi
venbel
ow:
Asser
ti
on(
A):
Neweconomi
cref
ormspav
edwayf
or consumersov
erei
gnt
y.
12
 Reason(
R):Di
ver
segl
obalmar
ket
sal
l
owedawi
dev
ari
etyofgoodsandser
vices
t
obeav
ail
abl
etot
heconsumer
s.
Al
ter
nat
ives:
a.Bot
hAsser
ti
on(
A)andReason(
R)ar
etr
ueandReason(
R)i
sthecor
rect
expl
anat
ionofAsser
ti
on(
A)
b.Bot
hAsser
ti
on(
A)andReason(
R)ar
etr
ueandReason(
R)i
snott
he
cor
rectexpl
anat
ionofAsser
ti
on(
A)
c.Asser
ti
on(
A)i
str
uebutReason(
R)i
sfal
se
d.Asser
ti
on(
A)i
sfal
sebutReason(
R)i
str
ue

ANSWERKEY:

13
 CHAPTER4:
POVERTY

1.Whi
choft
hef
oll
owi
ngi
sanexampl
eofur
banpoor
?
a.Ragpi
cker
s
b.St
reetcobbl
ers
c.Road-
sidev
endor
s
d.Al
loft
hese

2.Indi
aisacount
rysuff
eri
ngf
rom:
a.Chroni
cunemploy
ment
b.Cy
cli
cal
unempl
oyment
c.St
ruct
ural
unempl
oyment
d.Noneoft
hese

3.Atthemacrol
evel,
acountr
yispoorwhen:
a.peopl
efeel
helpl
essandpowerl
esstochanget
hei
rpl
i
ght
b.i
tisi
nfl
i
ctedwi
thhungerandst
arv
ati
on
c.al
argesegmentoft
hepopul
ati
onl
ackscapabi
l
ityt
ogeteducat
ion
d.al
loft
hese

4.Pri
meMi ni
ster
'sEmpl
oymentGener
ati
onPr
ogr
ammewasst
art
edi
n:
a.1995
b.1998
c.2008
d.2010

5.Headcountr
ati
oref
erst
o:
a.somecut-
offpoi
ntwi
threspectt
othei
ndi
vi
dualconsumpt
ionexpendi
tur
eper
mont
h
b.measur
ementofpov
ert
yint
ermsoft
henumberofper
sonsbel
owpov
ert
yli
ne
c.measur
ement of pov
ert
y acr
oss di
ff
erent cl
asses,r
egi
ons or
count
ri
es
d.noneoft
hese

6.Rel
ati
vepov
ertyref
ersto:
a.pov
ert
yacrossdif
fer
entcount
ri
es
b.pov
ert
yacr
ossdi
ff
erentr
egi
ons
c.pov
ert
yacr
ossdi
ff
erentcl
asses
d.al
loft
hese

7.Theobj
ect
iveof ist
oprovideempl
oymentt
oeducat
edunempl
oyed:
a.Swar
naJayant
iShahr
iRozgarYoj
ana
b.Pr
imeMi
nist
er'
sRozgarYoj
ana
14
 c.Swar
naj
ayant
iGr
am Swar
ozgarYoj
ana
d.Nat
ional
UrbanLi
vel
i
hoodMi
ssi
on
8.Accor
dingt
oDadabhai
Naor
oji
'
scal
cul
ati
ons,
pov
ert
yli
necor
respondst
o:
a.oft
headul
tjai
lCostofl
i
ving
b.t
wo-
thi
rdoft
headul
tjai
lcostofl
i
ving
c.t
hree-
four
thoft
headul
tjai
lcostofl
i
ving
d.noneoft
hese

9.I
n1979,
theGov
ernmentofI
ndi
afor
med:
a.Exper
tGr
oupst
odef
inet
hecr
it
eri
onf
ori
dent
if
yingpoori
nthecount
ry
b.St
udyGr
oupt
odef
inet
hecr
it
eri
onf
ori
dent
if
yingpoori
nthecount
ry
c.TaskFor
ceonpr
oject
ionsofmi
nimum needsandef
fect
iveconsumpt
iondemand
d.Noneoft
hese

10.Whi
choft
hef
oll
owi
ngi
snotacauseofpov
ert
yinI
ndi
a?
a.Lowl
evel
ofnat
ional
product
b.I
nfl
ati
onar
yspi
ral
c.Capi
tal
adequacy
d.Lackofi
nfr
ast
ruct
ure

11.Swar
naj
ayant
iGr
am Swar
ozgarYoj
anawasl
aunchedi
n:
a.Apr
il1991
b.December1995
c.Apr
il1999
d.December2001

12.Whi
choft
hef
oll
owi
ngi
sabaset
oident
if
ypooraccor
dingt
oeconomi
sts?
a.Occupat
ion
b.I
ncomeoft
heasset
s
c.Owner
shi
p
d.Bot
haandc

13.Theconceptofpov
ert
yli
nei
nIndi
awasf
ir
sti
ntr
oducedi
n:
a.1962
b.1955
c.1989
d.979

15.Readt
hef
oll
owi
ngnewsr
epor
tcar
eful
l
yandanswert
hequest
ionsoni
tsbasi
s:
Thatt
her
educt
ioni
npov
ert
yhasn'
tbeeni
mpr
essi
vehasal
sobeenpoi
ntedoutbyan
15
 assessmentr
eleasedi
nJanuar
y2020bygov
ernmentt
hink-
tankNI
TIAay
og.Goi
ng
byt
hest
ates'
progr
essonpov
ert
yreduct
ion,I
ndi
aisf
arbehi
ndt
he“
zer
opov
ert
yby
2030”
.St
atesr
athersl
i
ppedi
nthei
ref
for
tst
oreducepov
ert
yin2019,
incompar
ison
t
o2018.Thel
apsi
ngbackofpeopl
ecl
i
mbi
ngabov
ethepov
ert
yli
nei
sthemost
i
mpor
tantr
easonofchr
oni
cpov
ert
y,accor
dingt
otheCPRC st
udy
.Itmeansour
pov
ert
y-er
adi
cat
ionef
for
tsar
enotsuccessf
uli
nkeepi
ngpeopl
eabov
epov
ert
yli
ne.
—Downt
oEar
th,
14t
hJanuar
y,2020Chooset
hecor
rectopt
ion:

16.Theabov
epar
agr
aphr
elat
est
o:
a.chr
oni
cpoor
b.chur
ningpoor
c. occasi
onal
l
ypoor
d.t
ransi
entpoor

17.Mi
nimum cal
ori
eint
akef
orr
ural
per
sont
obeabov
epov
ert
yli
nehasbeensetat
:
a.2,
200cal
ori
es
b.2,
300cal
ori
es
c.2,
400cal
ori
es
d.2,
500cal
ori
es

18._
___
_isoneoft
heway
stoest
imat
ethenumberofpeopl
ewhoar
ebel
owpov
ert
y
l
i
ne.
a.Pov
ert
yrat
io
b.Sampl
i
ng
c.Headcountr
ati
o
d.Noneoft
hese

19.Whi
choft
hef
oll
owi
ngi
snott
rueaboutgov
ernment
sini
ti
atest
oal
l
evi
atepov
ert
y?
a.I
ntegr
atedChi
l
dDev
elopmentSer
vicesSchemeai
mst
oimpr
ovet
henut
ri
ti
onal
and heal
thst
atusofchi
l
dreni
ntheagegr
oupof
0-6y
ear
s
b.Meet
ingmi
nimum needsoft
hepoori
sanappr
oacht
hatseekst
oal
l
evi
ate
pov
ert
y t
hrought
ri
ckl
e-downef
fect
c.MGNREGAwhi
chi
sbasedont
hepr
inci
pleofr
ightt
owor
kwasl
aunchedi
n
2005
d.Noneoft
hese

20.Readt
hef
oll
owi
ngst
atement
s:
Asser
ti
on(
A)andReason(
R).
16
 Chooseoneoft
hecor
rectal
ter
nat
ivesgi
venbel
ow:
Asser
ti
on(
A):I
ndi
ausest
hemont
hlypercapi
taexpendi
tur
emechani
sm t
oident
if
y
t
hepoor
.
Reason(
R):Mont
hlypercapi
taexpendi
tur
emechani
sm t
akesi
ntoconsi
der
ati
on
soci
alf
act
orsaswel
l
.
Al
ter
nat
ives:
a.Bot
hAsser
ti
on(
A)andReason(
R)ar
etr
ueandReason(
R)i
sthecor
rect
expl
anat
ionofAsser
ti
on(
A)
b.Bot
hAsser
ti
on(
A)andReason(
R)ar
etr
ueandReason(
R)i
snott
hecor
rect
expl
anat
ionofAsser
ti
on(
A)
c.Asser
ti
on(
A)i
str
uebutReason(
R)i
sfal
se
d.Asser
ti
on(
A)i
sfal
sebutReason(
R)i
str
ue

21.Readt
hef
oll
owi
ngst
atement
s:
Asser
ti
on(
A)andReason(
R).
Chooseoneoft
hecor
rectal
ter
nat
ivesgi
venbel
ow;
Asser
ti
on(
A):UnderMi
d-dayMealScheme,f
reel
unchi
ssuppl
i
edt
ochi
l
dreni
nal
l
cl
assesi
ngov
ernment
,gov
ernment
-ai
ded,
local
bodyandot
herschool
s.
Reason(
R):UnderMGNREGA,empl
oymenti
sof
fer
edf
orami
nimum per
iodof100
day
s.
Al
ter
nat
ives:
a.Bot
hAsser
ti
on(
A)andReason(
R)ar
etr
ueandReason(
R)i
sthecor
rect
expl
anat
ionofAsser
ti
on(
A)
b.Bot
hAsser
ti
on(
A)andReason(
R)ar
etr
ueandReason(
R)i
snott
hecor
rect
expl
anat
ionofAsser
ti
on(
A)
c.Asser
ti
on(
A)i
str
uebutReason(
R)i
sfal
se
d.Asser
ti
on(
A)i
sfal
sebutReason(
R)i
str
ue

22.Readt
hef
oll
owi
ngst
atement
s
Asser
ti
on(
A)andReason(
R).
Chooseoneoft
hecor
rectal
ter
nat
ivesgi
venbel
ow:
Asser
ti
on(
A):
Urbanpov
ert
yisaspi
l
lov
erofr
ural
pov
ert
y.
Reason(
R):
Peopl
etendt
omi
grat
efr
om r
ural
areast
our
banar
easi
nsear
chofj
obs.
Al
ter
nat
ives:
a.Bot
hAsser
ti
on(
A)andReason(
R)ar
etr
ueandReason(
R)i
sthecor
rect
expl
anat
ionofAsser
ti
on(
A)
b.Bot
hAsser
ti
on(
A)andReason(
R)ar
etr
ueandReason(
R)i
snott
hecor
rect

17
 expl
anat
ion ofAsser
ti
on(
A)
c.Asser
ti
on(
A)i
str
uebutReason(
R)i
sfal
se
d.Asser
ti
on(
A)i
sfal
sebutReason(
R)i
str
ue

CHAPTER5:
HUMANCAPI
ATLFORMATI
ON

1.Human__¬¬¬¬¬¬¬_
___
___
¬__
__i
sanendi
nit
sel
f
a.r
esour
ce
b.capi
tal
c.dev
elopment
d.noneoft
hese

2.
_____
___isasour
ceofhumancapi t
al.
a.Higherpr
oduct
ivi
tyofphy
sicalcapi
tal
b.Expendi
tur
eoni
nfor
mat
ion
c.Br
aindr
ain
d.Noneoft
hese

3.Asameanstoanend,
humancapi
tal
isl
i
nkedwi
th:
a.v
alue-
addi
ti
on
b.i
ncome
c.expendi
tur
e
d.noneoft
hese

4.Whenskil
landexper
ti
seoft
hepeopl
eri
se,
a.humancapi
tal
b.phy
sical
capi
tal
c.humancapi
tal
for
mat
ion
d.noneoft
hese

5.___
___
___
___r
efer
stopr
oducedmeansofpr
oduct
ion.
a.Humanresour
ce
b.Humancapi
tal
c.Phy
sical
capi
tal
d.Humancapi
tal
for
mat
ion

6.Expenditureonpreventi
vemedi
cinemeansexpendi
tur
eon:
a.medical int
erv
enti
ondur i
ngi
l
lness
b.vaccinati
on
c.spreadofheal t
hlit
eracy
d.both( a)and(b)

7.Ri
singpopul
ati
on:
18
 a.sl
owsdownt
hepr
ocessofhumancapi
tal
for
mat
ioni
nthedomest
iceconomy
b.i
mpai
rsourcompet
it
ivenessi
nthei
nter
nat
ional
mar
ketofhumancapi
tal
c.l
eadt
oaf
all
int
hecapaci
tyt
oacqui
respeci
ali
zedski
l
lsandknowl
edge
d.noneoft
hese
8.Whi
choft
hef
oll
owi
ngi
sasour
ceofhumancapi
tal
?
a.Mi
grat
ion
b.Expendi
tur
eoneducat
ion
c.On-
the-
jobt
rai
ning
d.Al
loft
hese

9.Whi
choft
hef
oll
owi
ngi
scor
recti
nthecont
extofhumancapi
tal
?
a.Humancapi
tal
cannotbesol
dint
hemar
ketl
i
keacommodi
ty
b.Mov
ementofhumancapi
tal
isnotper
fect
lymobi
l
e
c.Humancapi
tal
isi
nsepar
abl
efr
om i
tsowner
d.Al
lOft
hese

10.Humancapi
tal
for
mat
ioni
ncr
easespr
oduct
ivi
tyof
:
a.humancapi
tal
b.phy
sical
capi
tal
c.f
inanci
alcapi
tal
d.noneoft
hese

11.Humancapi
tal
for
mat
ionl
eadst
o:
a.i
nvent
ions
b.i
nnov
ati
on
c.t
echni
cal
impr
ovement
s
d.noneoft
heabov
e

Readquest
ions
Acount
ri
eseconomi
cgr
owt
hdependsonmanyf
act
orsl
i
kenat
uralr
esour
ces,
human
andphy
sicalcapi
tal
,technol
ogi
caldev
elopmentandsoci
alandpol
i
ticalf
act
ors.I
ndi
a
i
saneconomywhi
chi
ncl
udest
radi
ti
onalv
il
lagef
armi
ng,moder
nagr
icul
tur
eand
handi
craf
ts.A wi
der
angeofmoder
nindust
ri
es,andmul
ti
tudeofser
vices.I
ndi
a'
s
economyi
smai
nlyaser
vicebasedeconomybypr
oduci
ng45.
4% ofGDP,wher
e
agr
icul
tur
econt
ri
but
es16.
5%andi
ndust
ry29.
8%.(
Cent
ralI
ntel
l
igenceAgency
)Indi
a'
s
cur
renteconomi
cgr
owt
hrat
eis7.
6%whi
cht
he4t
hfast
estgr
owi
ngeconomyi
nthe
wor
ld.I
ndi
a'
seconomyi
soneofl
i
net
hei
nfast
est2016gr
owi
ngbyCI
A.Economi
esi
n
t
hewor
ldbuti
ts21.
9% popul
ati
onl
i
vesbel
ow t
hepov
ert
ywor
ldf
actbook.Human
capi
tali
soneoft
hei
mpor
tantf
act
orsi
ntheeconomi
cgr
owt
hcount
ry.I
ndi
ahas
19
bl
essedbyt
hisr
esour
cebuti
fpol
i
ciesar
enothel
pfuli
nusi
ngt
her
esour
cet
hose
r
esour
cescanbeawast
e.
—Dr
:SushmaShukl
a.I
nter
nat
ional
Jour
nal
ofCur
rentResear
ch,

Chooset
hecor
rectopt
ion:

12. Whi
choft
hef
oll
owi
ngi
snotaf
eat
ureofphy
sical
capi
tal
?
a.Depr
eci
ati
oncanbeav
oided
b.Canbesol
dint
hemar
ket
c.I
tissepar
abl
efr
om t
heowner
d.Mobi
l
ityacr
ossbor
der
sisr
est
ri
cted

13. _
___
___ i
sani
ndexofwel
far
e,i
rr
espect
iveofi
tscont
ri
but
ioni
nthepr
ocessof
v
alueaddi
ti
on:
a.Humancapi
tal
b.Humandev
elopment
c.Humanwel
far
e
d.Humancapi
tal
for
mat
ion

13. Whi
choft
hef
oll
owi
ngi
snott
rueabouthumancapi
tal
?
a.Humancapi
tal
isast
ockconcept
b.I
tref
erst
otheski
l
landexper
ti
seacqui
redbymanov
ert
ime
c.I
tist
hesum t
otal
ofski
l
landexper
ti
seoft
hosewhoar
eengagedi
nthepr
ocess
of
v
alueaddi
ti
on
d.Noneoft
hese

14. Whi
choft
hef
oll
owi
ngi
snott
rueaboutt
her
elat
ionshi
pbet
weenhumancapi
tal
and humandev
elopment
?
a. Humancapi
tali
sanar
row Concept
,whi
l
ehumandev
elopmenti
sawi
der
concept
b. Humandev
elopmenti
mpact
shumancapi
tal
,whi
l
ehumancapi
taldoesnot
i
mpacthumandev
elopment
c. Humandev
elopmenti
snotpossi
blewi
thouthumancapi
tal
d. Noneoft
hese

20
21
 CHAPTER6:
RURALDEVELOPMENT
1.Di
ver
sif
icat
ionofcr
opspr
oduct
ioni
mpl
i
es:
a.shi
ftf
rom cr
opf
armi
ngt
oot
herar
easofpr
oduct
ionact
ivi
ty
b.pr
oduct
ionofonl
yonespeci
ali
zedCr
op
c.pr
oduct
ionofmul
ti
plecr
opsr
athert
hanonespeci
ali
zedcr
op
d.noneoft
hese

2.I
nagr
icul
tur
eloansar
erai
sedgener
all
yforaper
iodr
angi
ngbet
ween6t
omont
hs.
a.shor
t-
ter
m
b.medi
um-
ter
m
c.l
ong-
ter
m
d.noneoft
hese

3.Wi
tht
he nat
ional
i
zat
ion ofcommer
cialbanks,t
he conceptof
_
___
___
__wasputi
ntopr
act
icei
nIndi
a.
a.economi
cbanki
ng
b.
soci
albanki
ng
c.cul
tur
albanki
ng
d.noneoft
hese

4._
___
___
___
___
leads t
o a shi
ftf
rom subsi
stence f
armi
ng t
o commer
cial
f
armi
ng.
a.Mar
ket
ing
b.Rev
olut
ion
c.Di
ver
sif
icat
ion
d.noneoft
hese

5._
__r
evol
uti
onr
efer
stoar
evol
uti
onar
yri
sei
npr
oduct
ionofhor
ti
cul
tur
ecr
opsand
honey
.
a.Gr
een
b.Gol
den
c.Whi
te
d.Noneoft
hese

6.NABARDwasest
abl
i
shedi
n:
a.1955
b.1962
c.1982
d.1991
22
7._
___
___
___
___
_decr
easest
her
iskofpr
icef
luct
uat
ions.
a.Pr
oduct
iondi
ver
sif
icat
ion
b.Cr
opdi
ver
sif
icat
ion
c.Agr
icul
tur
almar
ket
ing
d.Noneoft
hese

8._
___
___
___
_ist
hesy
stem underwhi
cht
hegov
ernmentdi
str
ibut
esf
oodgr
ainsand
ot
heressent
ial
sofl
i
fet
othebel
ow pov
ert
yli
nepopul
ati
onatsubsi
dizeddi
str
ibut
ion
r
atest
hroughf
airpr
iceshops.
a.Buf
ferst
ock
b.Mi
nimum suppor
tpr
ice
c.Publ
i
cdi
str
ibut
ionsy
stem
d.Noneoft
heabov
e

23
 CHAPTER5:
MONEY
1.Whi
choft
hef
oll
owi
ngi
sbasi
cchar
act
eri
sti
cofbar
tersy
stem ofexchange:
a.St
oreofv
alue
b.doubl
ecoi
nci
denceofwant
c.Medi
um ofexchange
d.Bot
haandb

2.Ct
oCeconomyr
efer
stot
hatsy
stem wher
e:
(
a) goodsar
eexchangedf
orgoods
(
b)goodsar
eexchangedf
ordomest
iccur
rency
(
c)goodsar
eexchangedf
orf
orei
gncur
rency
(
d)goodsar
enotex
changedal
l

3.Readt
hef
oll
owi
ngdi
aloguebet
weent
wopeopl
e.
Rohi
t:Iwant1kgOfmango.
Aar
ushi
:WhatWi
l
lyougi
vei
nexchange?
Rohi
t:Icangi
vey
ou1pai
rofshoesi
nret
urnf
ort
hemangoes.
Aar
ushi
:Idon'
tneedshoes, Iwantsomechocol
ates.
Whi
choft
hef
oll
owi
ngpr
obl
emsi
sbei
ngf
acedbyRohi
tandAar
ushii
nthei
r
pr
ocess?
(
a)LackOfst
oreOfv
alue
(
b)Lackofdoubl
ecoi
nci
denceofwant
s(c)Lackofst
andar
d ofdef
err
ed
pay
ment
(
d)Absenceofcommonuni
tsofv
alue

3.Moneyi
s:
(
a) any
thi
ngwhi
chr
equi
resdoubl
ecoi
nci
denceofwant
s
(
b) any
thi
ngwhi
chi
scommonl
yaccept
edasamedi
um ofexchange
(
c)any
thi
ngwhi
chi
scommonl
yaccept
edasacommodi
tymoney
(
d)noneoft
hese

4.Ev
olut
ionofmoneyhasf
aci
l
itat
ed:
(
a)acommonuni
tofexchange
(
b)st
oreofv
alue

(
c)t
ransf
erofv
alue
(
d)al
loft
hese

5. Wi
tht
hent
roduct
ionOfmoney
:
24
 (
a) act
sofsal
eandpur
chasehav
ebeensepar
ated
(
b) act
sofexchangehav
ebeensepar
ated
(
c)act
sofpr
oduct
ionandconsumpt
ionhav
ebeensepar
ated
(
d)bot
h(b)and(
c)

6.Moneywhi
chi
saccept
edasamedi
um ofexchangebecauseoft
het
rustbet
ween
t
hepay
er andt
hepay
eei
scal
l
ed:
a.f
ull
bodi
edmoney
b.cr
edi
tmoney
c.f
iatmoney
d.f
iduci
arymoney

7.Moneyt
hati
sissuedbyt
heaut
hor
it
yoft
hegov
ernmenti
scal
l
ed:
a.f
ull
bodi
edmoney
b.cr
edi
tmoney
c.f
iatmoney
d.f
iduci
arymoney

8.Moneyv
aluei
sequal
tocommodi
tyv
aluei
ncaseof
:
a.f
iatmoney
b.f
ull
bodi
edmoney
c.f
iduci
arymoney
d.cr
edi
tmoney

9.El
ect
roni
ctr
ansf
erofmoneyi
nter
msofcr
edi
t/
debi
tent
ri
esOft
heaccount
•hol
der
s
banksi
s cal
l
ed:
a.e-
mar
ket
ing
b.e-
busi
ness

c. emoney
d.e-banki
ng

Readt
hef
oll
owi
ngi
nfor
mat
ioncar
eful
l
yandanswert
hequest
ionsI-
4ont
hebasi
sof
t
hesame:Somecount
ri
eshav
emadeanat
temptt
omov
etowar
dsaneconomywhi
ch
usel
essofcashandmor
eofdi
git
alt
ransact
ions.A cashl
esssoci
etydescr
ibesan
economi
cst
atewher
ebyf
inanci
alt
ransact
ionsar
enotconnect
edwi
thmoneyi
nthe
f
orm ofphy
sicalbank not
es orcoi
ns butr
athert
hrough t
he t
ransf
erofdi
git
al
i
nfor
mat
ion(
usual
l
yanel
ect
roni
crepr
esent
ati
onofmoney
)bet
weent
het
ransact
ing
par
ti
es.I
nIndi
agov
ernmenthasbeenconsi
stent
lyi
nvest
ingi
nvar
iousr
efor
msf
or
25
gr
eat
erf
inanci
ali
ncl
usi
on.Dur
ing t
hel
astf
ew y
ear
s'i
nit
iat
ivessuchasJanDhan
account
s.Aadharenabl
edpay
mentsy
stems,
e—Wal
l
ets,
Nat
ionalf
inanci
alSwi
tch(
NFS)
andot
her
shav
est
rengt
henedt
hegov
ernmentr
esol
vet
ogocashl
ess.Today
.fi
nanci
al
i
ncl
usi
oni
sseenasar
eal
i
sti
cdr
eam becauseofmobi
l
eandsmar
tphonepenet
rat
ion
acr
osst
hecount
ry.
Chooset
hecor
rectopt
ion:
10.Aneconomydescr
ibedabov
eist
heone:
a.wher
einf
inanci
alt
ransact
ionsar
econnect
edwi
thpl
ast
icmoney
b.wher
einf
inanci
alt
ransact
ionsar
econnect
edwi
thpapermoney
c.wher
einf
inanci
alt
ransact
ionsar
econnect
edwi
the-
money
d.bot
h(a)and(
c)

11.I
nthi
ssy
stem Ofexchange,
goodswer
eexchangedf
orgoods.
a.Bar
ter
b.monet
ary
c.bot
h(a)and(
b)
d.(
d)noneoft
hese

12.Cashcar
dsar
etheexampl
eOf
:
a.papermoney
b.pl
ast
icmoney
c.f
iatmoney
d.f
iduci
arymoney

26
 CHAPTER6:
BANKI
NG
1.emoneyi
sthe:
a.phy
sical
transf
erofmoney
b.el
ect
roni
ctr
ansf
erOfmoneybywayofonl
ycr
edi
tent
ri
esi
nthebankaccount
s
c.el
ect
roni
ctr
ansf
erofmoneybywayofonl
ydebi
tent
ri
esi
nthebankaccount
s
d.el
ect
roni
ctr
ansf
erofmoneybywayOfcr
edi
t/
debi
tent
ri
esi
nthebankaccount
s

2.Thecent
ral
bank:
a.i
sanapexbank
b.i
sthesol
eagencyofnot
e-i
ssui
ng
c.f
ocusesonst
abi
l
ityandgr
owt
hoft
heeconomy
d.al
loft
hese

3.Li
qui
dasset
sincl
ude:
a.unencumber
edcash
b.appr
ovedsecur
it
ies
c. gol
d
d.al
loft
hese

4.SLRr
efer
sto:
a.cashr
eser
veswi
tht
hebank
b.gol
dreser
veswi
tht
hebank
c. r
eser
vesofunencumber
edsecur
it
ies
d.al
loft
hese

5.Wi
thani
ncr
easei
nmar
ketr
ateofi
nter
est
,costofcr
edi
t:
a.Decr
eases
b.i
ncr
eases
c.r
emai
nsconst
ant
d.noneoft
hese

6.Whi
choft
hef
oll
owi
ngi
sthef
unct
ionofcent
ral
bankoft
hecount
ry?
a.Bankofnot
e-i
ssui
ng
b.Lender
'sl
astr
esor
t
c.Cont
rol
ofcr
edi
t
d.Al
loft
hese

7.Repor
ater
elat
est
o:
a.shor
t-
ter
m bor
rowi
ngsbyt
hecommer
cial
banks
27
 b.l
ong-
ter
m bor
rowi
ngsbyt
hecommer
cial
banks
c.ov
erni
ghtbor
rowi
ngsbyt
hecommer
cial
banks
d.noneoft
hese

8.Ther
ateatwhi
chcommer
cialbanksar
eal
l
owedt
opar
kthei
rsur
plusf
undswi
tht
he
RBIi
s cal
l
ed:
a.bankr
ate
b.r
epor
ate
c.cur
rencyr
ate
d.r
ever
ser
epor
ate

9.Mor
alsuasi
onbyt
heRBIr
elat
est
o:
a.pr
essur
ebyt
heRBIt
ofol
l
owi
tsdi
rect
ives
b.per
suasi
onbyt
heRBIt
ofol
l
owi
tsdi
rect
ives
c.per
suasi
onaswel
laspr
essur
ebyt
heRBIt
ofol
l
owi
tsdi
rect
ives
d.noneoft
hese

10.Mar
ginRequi
rement
a.Cur
rentv
alueoft
hesecur
it
yof
fer
edf
orl
oan—Val
ueofl
oangr
ant
ed
b.Cur
rentv
alueOft
hesecur
it
yof
fer
edf
orl
oan+Val
ueofl
oangr
ant
ed
c.Cur
rentv
alueoft
hesecur
it
yof
fer
edf
orl
oanxVal
ueofl
oangr
ant
ed
d.Cur
rentv
alueoft
hesecur
it
yof
fer
edf
orl
oan+Val
ueofl
oangr
ant
ed

11.Whi
choft
hef
oll
owi
ngi
saf
unct
ionof
commer
cial
bank?
a.Bankert
othegov
ernment
b.Cl
ear
inghousef
unct
ion
c.Cust
odi
anOff
orei
gnexchange
d.Noneoft
hese

12.Sol
eauthorit
yOfissuingnot
einI
ndi
ais:
a.Commer ci
alBank
b.Mini
str
yOfFinance
c.Reser
veBankofI ndia
d.Depar
tmentofRev
enue

13.___
_____
__isthel
enderoft
hel
astr
esor
t.
a.ReserveBankofIndi
a
b.Mi
nist
ryofFi
nance
c.Commer
cial
Bank
d.Depar
tmentofRev
enue

28
14. Readt
hef
oll
owi
ngst
atement
s—Asser
ti
on(
A)andReasonchoose oneoft
he
cor
rect al
ter
nat
ivesgi
venbel
ow:
Asser
ti
on(
A):Hi
ghercashr
eser
ver
ati
oimpl
i
esl
owercapaci
tyoft
hecommer
cial
bankst
ocr
eat
ecr
edi
t.
Reason(
R):
Credi
tmul
ti
pli
eri
sther
eci
procal
ofcashr
eser
ver
ati
o.
Al
ter
nat
ives:
a.Bot
hAsser
ti
on(
A)andReason(
R)ar
etr
ueandReason(
R)i
sthecor
rect
expl
anat
ionof
Asser
ti
on(
A)
b.Bot
hAsser
ti
on(
A)andReason(
R)ar
etr
ueandReason(
R)i
snott
hecor
rect
expl
anat
ionofAsser
ti
on(
A)
c.Asser
ti
on(
A)i
str
uebutReason(
R)i
sfal
se
d.Asser
ti
on(
A)i
sfal
sebutReason(
R)i
str
ue

15.Readt
hef
oll
owi
ngst
atement
s—Asser
ti
on(
A)andReason(
R).oneoft
hecor
rect
al
ter
nat
ivesgi
venbel
ow:
Asser
ti
on(
A):Thecent
ralbanki
sanapexbankoft
heent
ir
ebanki
ngsy
stem ofa
count
ry.
Reason(
R):Al
lbanksar
etowor
kaccor
dingt
hegui
del
i
nesanddi
rect
ivesoft
he
cent
ral
bank.
Al
ter
nat
ives:
a.Bot
hAsser
ti
on(
A)andReason(
R)ar
etr
ueandReason(
R)i
sthecor
rect
expl
anat
ionofAsser
ti
on(
A)
b.Bot
hAsser
ti
on(
A)andReason(
R)ar
etr
ueandReason(
R)i
snott
heCor
rect
expl
anat
ionofAsser
ti
on(
A)
c.Asser
ti
on(
A)i
str
uebutReason(
R)i
sfal
se
d.Asser
ti
on(
A)i
sfal
sebutReason(
R)i
str
ue

16.Readt
hef
oll
owi
ngst
atement
s—Asser
ti
on(
A)andReason(
R).Chooseoneoft
he
cor
rect al
ter
nat
ivesgi
venbel
ow:
Asser
ti
on(
A):
All
financi
ali
nst
it
uti
onsar
ebanki
ngi
nst
it
uti
ons.
ReasonHi
ghercashdeposi
trat
ioi
mpl
i
eshi
ghercr
edi
tcr
eat
ioncapaci
tyoft
he
commer
cial
banks.
Al
ter
nat
ives:
a.Bot
hAsser
ti
on(
A)andReason(
R)ar
etr
ueandReason(
R)i
sthecor
rect
expl
anat
ionof
Asser
ti
on(
A)
b.Bot
hAsser
ti
on(
A)andReason(
R)ar
etr
ueandReason(
R)i
snott
hecor
rect
29
 expl
anat
ionofAsser
ti
on(
A)
c.Asser
ti
on(
A)i
str
uebutReason(
R)i
sfal
se
d.Asser
ti
on(
A)i
sfal
sebutReason(
R)i
str
ue

CHAPTER10:
GOVERNMENTBUDGET

1.Pr
imar
yDef
ici
tis
a.Rev
enuedef
ici
t—I
nter
estpay
ment

b.Rev
enuedef
ici
t+I
nter
estpay
ment

c.Fi
scal
def
ici
t—I
nter
estpay
ment

d.Fi
scal
def
ici
tInt
erestpay
ment

2.Pr
imar
ydef
ici
tindi
cat
es:
a.est
imat
edbor
rowi
ngoft
hegov
ernmenti
ncl
usi
veofi
nter
estpay
ment
b.act
ual
bor
rowi
ngoft
hegov
ernmenti
ncl
usi
veofi
nter
estpay
ment
c.bor
rowi
ngsonaccountoft
heexcessof
cur
renty
earexpendi
tur
eov
ercur
rent
y
earr
evenueexcl
usi
veofi
nter
estpay
mentonpastl
oans
d.bor
rowi
ngbyt
hegov
ernmentf
rom t
hegener
alpubl
i
c

3.I
nter
estpay
ment
sar
eincl
udedi
n:
a.r
evenuedef
ici
t
b.f
iscal
def
ici
t
c.pr
imar
ydef
ici
t
d.noneoft
hese

4.Budgetsur
plusoccur
swhen:
a.gov
ernmentr
ecei
ptsgov
ernmentexpendi
tur
e
b.gov
ernmentr
ecei
pts>gov
ernmentexpendi
tur
e
c.gov
ernmentr
ecei
pts<gov
ernmentexpendi
tur
e
d.gov
ernmentex
pendi
tur
eiszer
o

5.Whi
choft
hef
oll
owi
ngst
atementi
snott
ruef
orf
iscal
def
ici
t?
a.Fi
scal
def
ici
trepr
esent
sthebor
rowi
ngoft
hegov
ernment
b.Fiscaldefi
citi
sthedif
ferencebetweent ot
alexpenditur
eandtot
alreceiptsofthe
gov er
nment
c.Fiscaldefi
citi
sthediff
erencebetweent otalexpendi
tureandt
otalreceipt
sother
thanbor r
owing
d.Fiscaldefi
citi
ncr
easesthefutur
eliabi
l
ityofthegov er
nment

30
6.Thegov
ernmentbudgethasar
evenuedef
ici
t.Thi
sget
sfi
nancedby
:
a.i
ndi
rectt
axesandbor
rowi
ng
b.t
axr
evenueandbor
rowi
ng
c.bor
rowi
nganddi
si
nvest
ment
d.t
axr
evenueandi
ndi
rectt
axes
7.Whi
choft
hef
oll
owi
ngi
sanexampl
eofdi
rectt
ax?
a.Val
ueaddedt
ax
b.Cor
por
atet
ax
c.GST
d.Exci
sedut
y

8.Capi
tal
recei
ptsoft
hebudgeti
ncl
ude:
a.r
ecov
eryofl
oans
b.bor
rowi
ngs
b.di
sinv
est
ment
d.al
loft
hese

9.Whi
choft
hef
oll
owi
ngst
atementi
str
ue?
a.Loansf
rom I
MFi
sar
evenuer
ecei
pt
b.
Higherr
evenuedef
ici
tnecessar
il
yleadst
ohi
gherf
iscal
def
ici
t
c.Bor
rowi
ngbyagov
ernmentr
epr
esent
sasi
tuat
ionoff
iscal
def
ici
t
d.
Capi
tal
def
ici
tist
heexcessofcapi
tal
recei
ptsov
ert
her
evenuer
ecei
pts
10.Bor
rowi
ngi
ngov
ernmentbudgeti
s:
a.revenuedefi
cit
b.f
iscaldef
ici
t
c.pr
imar
ydef
ici
t
d.def
ici
tint
axes

11. Thenon-
taxr
evenuei
nthef
oll
owi
ngi
s:
a.expor
tdut
y b.i
mpor
tdut
y
c.di
vi
dends d.exci
se

Readt
hef
oll
owi
ngr
epor
tcar
eful
l
yandanswert
hequest
ions12-
15ont
hebasi
s01t
he
same;
Budget2020-
21est
imat
edt
heGr
oss"
TheRev
enue(
GTR)t
obe24.
23l
akhcr
orewhi
ch
i
s10.
8percentofGDP Thi
sbui
l
dsi
ntogr
owt
hof12percentov
ert
her
evi
sed
est
imat
es(
RE)of2019-
20and20.
6percentov
er2019-
20PA.Thedi
rectt
axes,

31
compr
isi
ngmai
nlyofcor
por
ateandper
sonali
ncomet
ax.const
it
utear
ound55per
centofGTR.-
Thesewer
eenv
isagedt
ogr
ow at12.
7percentr
elat
ivet
o2019-
20RE
and27.
2percentr
elat
ivet
o2019-
20PA.Ont
heot
herhand,t
hei
ndi
rectt
axeswer
e
ex
pect
edt
ogr
ow at11.
1percentv
is-
à-v
is2019-
20REand15percentasagai
nst
2019-
20PA.Thecont
ri
but
ionofdi
ff
erentt
axesi
nGTRasenv
isagedi
n2020-
21BE.
—Economi
cSumo,
2020-
21

32
Chooset
hecor
rectopt
ion:
10.Whi
choft
hef
oll
owi
ngi
sadi
rectt
ax?
a.Ser
vicet
ax
b.Taxonagr
icul
tur
ali
ncome
c.Val
ueaddedt
ax
d.Cust
omsdut
y
11.Ther
ecei
ptsar
erev
enuer
ecei
ptsbecause:
a. t
hesedonotl
eadt
odecr
easei
nasset
soft
hegov
ernment
b. t
hesecr
eat
eaddi
ti
onal
li
abi
l
iti
esoft
hegov
ernment
c. t
hesear
euni
l
ater
alpay
ment
s
d. t
hesemaybedi
rectori
ndi
rect
12.Whi
choft
hef
oll
owi
ngi
snotanexampl
eofnon-
taxi
ncomeoft
hegov
ernment
?
a. Escheat
b. El
ect
ri
cit
ybi
l
l
c.Fees
d.Noneoft
hese

13.Whi
choft
hef
oll
owi
ngi
snott
rueaboutr
evenuebudget
?
a.I
tdoesnoti
mpactassetandl
i
abi
l
ityst
atusoft
hegov
ernment
b.Hi
ghr
evenuer
ecei
ptsar
easi
gnofgr
owi
ngeconomy
c.I
tfocusesonGDPbywayofpubl
i
cinv
est
ment
d.Noneoft
hese

14.Readt
hef
oll
owi
ngst
atement
s—Asser
ti
on(
A)andReasonChooseoneot
al
ter
nat
ivesgi
venbel
ow:
Asser
ti
on(
A):
Expendi
tur
eoni
nter
estpay
menti
sacapi
tal
expendi
tur
e.
Reason Expendi
tur
eoni
nter
estpay
mentnei
thercr
eat
esasset
snorcausesa
r
educt
ioni
nli
abi
l
iti
esf
ort
hegov
ernment
.
a.
Bot
h Asser
ti
on (
A)and Reason (
R)ar
etr
ue and Reason (
R)i
sthe cor
rect
expl
anat
ionofAsser
ti
on(
A)
b.
Bot
hAsser
ti
on(
A)andReason(
R)ar
etr
ueandReason(
R)i
snott
hecor
rect
expl
anat
ionofAsser
ti
on(
A)
c.
Asser
ti
on(
A)i
str
uebutReason(
R)i
sfal
se
d.Asser
ti
on(
A)i
sfal
sebutReason(
R)i
str
ue

15.Readt
hef
oll
owi
ngst
atement
s—Asser
ti
on(
A)andReason(
R).Chooseoneoft
he
cor
rect al
ter
nat
ivesgi
venbel
ow:
Asser
ti
on(
A):
Moneyr
ecei
vedt
hroughdi
sinv
est
menti
sacapi
tal
recei
pt.
33
 Reason Moneyr
ecei
vedt
hroughdi
si
nvest
mentcausesr
educt
ioni
nasset
soft
he
gov
ernment
.
Al
ter
nat
ives:
a.Bot
hAsser
ti
on(
A)andReason(
R)ar
etr
ueandReason(
R)i
sthecor
rect
expl
anat
ionofAsser
ti
on(
A)
b.Bot
hAsser
ti
on(
A)andReason(
R)ar
etr
ueandReason(
R)i
snott
hecor
rect
expl
anat
ionof(
A)
c.Asser
ti
on(
A)i
str
uebutReason(
R)i
sfal
se
d.Asser
ti
on(
A)i
sfal
sebutReason(
R)i
str
ue

16.Readt
hef
oll
owi
ngst
atement
s—Asser
ti
on(
A)andReason(
R).Chooseoneoft
he
cor
rect al
ter
nat
ivesgi
venbel
ow:
Asser
ti
on(
A):
Def
ici
tbudgeti
sdesi
reddur
ingper
iodsofi
nfl
ati
on.
Reason(
R):
Sur
plusbudgeti
snotdesi
reddur
ingper
iodsofdepr
essi
on.
1
a.Bot
h(A)andReason(
R)ar
etr
ueandReason(
R)i
sthecor
rectexpl
anat
ionof
b.Bot
h andReason(
R)ar
etr
ueandReason(
R)i
snott
hecor
rectexpl
anat
ionof
c.Asser
ti
on(
A)i
str
uebutReason(
R)i
sfal
se
d.Asser
ti
on(
A)i
sfal
sebutReason(
R)i
str
ue

34
 CHAPTER11:
FOREI
GNEXCHANGE

1.Ot
hert
hingsr
emai
ningunchanged,Wheni
nacount
ryt
hepr
iceOff
orei
gn
cur
rency r
ises,
nat
ional
incomei
s:
a.l
i
kel
ytor
ise
b.l
i
kel
ytof
all
c.l
i
kel
ytor
iseandf
all
bot
h
d.notaf
fect
ed

2.Ot
hert
hingsr
emai
ningt
hesame,wheni
nacount
ryt
hemar
ketpr
iceOf
f
orei
gn cur
rencyf
all
s,nat
ional
incomei
sli
kel
y:
a.t
ori
se
b.t
ofal
l
c.t
ori
seort
ofal
l
d.t
oremai
nunaf
fect
ed

3.Ot
hert
hingsr
emai
ningt
hesame,Whenf
orei
gncur
rencybecomescheaper
,the
ef
fecton nat
ional
incomei
sli
kel
ytobe:
a.posi
ti
ve
b.negat
ive
c.posi
ti
veandnegat
ivebot
h
d.noef
fect

4.I
dent
if
ywhi
chOft
hef
oll
owi
ngSt
atement
sist
rue?I
CBSEsa,
np1eTaper20211
a.Thef
lexi
bleexchangel
ate:sy
stem gi
vest
hegov
ernmentmor
efl
exi
bil
i
tyt
o
mai
ntai
nlar
gest
ocksOff
orei
gnexchanger
eser
ves
b.I
nthemanagedf
loat
ingexchanger
atesy
stem,t
hegov
ernmenti
nter
venest
o
buyandsel
lfor
eigncur
renci
es
c.I
nthemanagedf
loat
ingexchanger
atesy
stem,t
hecent
ralbanki
nter
venest
o
moder
ateexchanger
atef
luct
uat
ions
d.I
nthef
ixedexchanger
atesy
stem,
mar
ketf
orcesf
ixt
heexchanger
ate

5.For
eignexchanger
efer
sto:
a.domest
iccur
rency
b.f
orei
gnCur
rency
c.bot
h(a)and(
b)
d.noneOft
hese

35
6.Whi
chOft
hef
oll
owi
ngi
sthekour
ceOfsuppl
yoff
orei
gnexchange?
a.I
mpor
ts
b.Remi
tt
ancesbyt
henon-
resi
dent
s
c.Specul
ati
vet
radi
ng
d.Pay
mentOfi
ncomes

7.Hedgi
ngf
unct
ionoff
orei
gnexchangemar
keti
mpl
i
es:
a.t
ransf
erOfpur
chasi
ngpoweri
nter
msOff
orei
gnexchangeacr
ossdi
ff
erent
count
ri
esOft
hewor
ld
b.pr
otect
ionagai
nstr
iskr
elat
edt
ovar
iat
ionsi
nfor
eignexchanger
ate
c.pr
ovi
sionofcr
edi
tint
ermsoff
orei
gnexchangef
ort
heexpor
tandi
mpor
tof
goodsandser
vicesacr
ossdi
ff
erentcount
ri
esofwor
ld
d.noneof
these

8.Whati
sther
elat
ionshi
pbet
weensuppl
yOff
orei
gnexchangeandexchanger
ate?
a.Di
rect
b.I
ndi
rect
c.Onet
oone
d.Nor
elat
ionshi
p

9.Thepr
iceoft
hecur
rencyOfonecount
ryi
nter
msOft
hecur
rencyofanot
her
count
ry.
a.Exchanger
ate
b.Spotr
ate
c.For
war
drat
e
d.Managedf
loat
ing

10.
When t
he v
alue oft
he domest
ic cur
rency i
s del
i
ber
atel
yreduced by t
he
gov
ernment
,iti
s cal
l
ed:
a.depr
eci
ati
on
b.appr
eci
ati
on
c.Dev
aluat
ion
d.r
eval
uat
ion

11.
Gol
dst
andar
dsy
stem ofexchanger
atei
sanol
dvar
iantof
:
a.f
ixedexchanger
atesy
stem
b.f
lexi
bleexchanger
atesy
stem
c.managedf
loat
ing
d.noneOft
hese
36
Readt
hef
oll
owi
ng
Def
ici
tisconsi
der
edasoneOft
hemosti
mpor
tantr
easonsf
ort
hef
all
i
ngv
alueof
t
heI
ndi
anRupee.A t
radedef
ici
thappenswhenacount
ryi
mpor
t,mor
ethani
t
ex
por
ts.pert
hel
atestr
epor
ts,I
ndi
a'
str
adedef
ici
thashi
t$14.
88bi
l
li
onsi
nce
Nov
ember2014.Themaj
ori
mpor
tsi
ncl
udegol
d.cr
udeoi
l
.et
c.Thei
ntr
oduct
ionof
c,
sranddemonet
izat
ionaccount
sfort
hedepr
eci
ati
onofI
ndi
anr
upeebydi
srupt
ing
t
hedomest
icsuppl
ychai
nswhi
chi
sder
ivedf
rom t
hei
ncr
easi
ngdomest
icdemands.
UShast
hewi
destt
radedef
ici
tof$7t
ri
ll
i
ont
hananyot
hercount
ry.Butt
heyar
e
ex
por
ti
ngasmuchast
heyi
mpor
t.Butbei
ngacount
ry.whi
chi
mpor
tsmor
ethani
t
ex
por
ts,
Indi
alosest
hev
alueofi
tscur
rency(
Rul
xe)asi
tusesaf
orei
gn
Chooset
hecor
rectopt
ion:

12.Ani
ncr
easei
ndemandoff
orei
gncur
rencyl
eadst
o:
a.appr
eci
ati
onofdomest
iccur
rency
b.r
eval
uat
ionofdomest
iccur
rency
c.depr
eci
ati
onofdomest
iccur
rency
d.dev
aluat
ionofdomest
iccur
rency

13.
Incaseofst
eepf
alli
nthev
alueofr
upee,t
heandbuybackr
upeef
rom t
he
f
orei
gnexchangemar
ket
.
a.Reser
veBankofI
ndi
a
b.Commer
cial
Banks
c.
Mini
str
yofFi
nance
d.Mi
nist
ryof
Commer
ce

13.
Thesal
eandpur
chaseoft
hef
orei
gncur
rency(
byt
heCent
ralBankofacount
ry)
t
omai
ntai
nrat
eofexchangewi
thi
nthedesi
redl
i
mit
siscal
l
ed:
a.r
emi
tt
ances
b.managedf
loat
ing
c.
hedgi
ng
d.specul
ati
vet
radi
ng

14.Whi
choft
hef
oll
owi
ngsy
stem ofexchanger
atei
smostr
igi
dandnotal
l
owany
adj
ust
ment
?
a.Fl
exi
bleexchanger
atesy
stem
b.Gol
dst
andar
dsy
stem ofexchanger
ate
c.Br
ett
onwoodssy
stem ofexchanger
ate
d.Noneoft
hese
37
Readt
hef
oll
owi
ngi
nfor
mat
ioncar
eful
l
yandanswert
hequest
ions16-
19ont
he
basi
soft
he
A Cur
rencycr
isi
sisasi
tuat
ioni
nwhi
chser
iousdoubtexi
stsast
o whet
hera
count
ry'
scent
ralbankhassuf
fi
ci
entf
orei
gnexchanger
eser
vest
omai
ntai
nthe
count
ry'
sfi
xedexchanger
ate.Thecr
isi
sisof
tenaccompani
edbyaspecul
ati
ve
at
tacki
nthef
orei
gnexchangemar
ket
.Acur
rencycr
isi
sresul
tsf
rom chr
oni
cbal
ance
ofpay
ment
sdef
ici
ts.andt
husi
sal
socal
l
edabal
anceofpay
ment
scr
isi
s.Of
ten
suchacr
isi
sendupwi
thdev
aluat
ionoft
hecur
rency
.Acur
rencycr
isi
sisat
ypeof
f
inanci
alcr
isi
s,andi
sof
tenwi
thar
ealeconomi
ccr
isi
s.Acur
rencycr
isi
srai
sest
he
pr
obabi
l
ityofabanki
ngcr
isi
soradef
aul
tcr
isi
s.Dur
ingacur
rencycr
isi
sthev
alueOf
f
orei
gndenomi
nat
eddebtwi
l
lri
sedr
ast
ical
l
yrel
ati
vet
othedecl
i
ningv
alueoft
he
home

38
 CHAPTER12:
BALANCEOFPAYMENT

1. I
dent
if
ywhi
choft
hef
oll
owi
ngst
atement
sist
rue?
a.Bal
anceoft
radei
sthebal
anceoncur
rentaccount
b.NRl
sdeposi
tsi
nIndi
aar
eapar
tofcapi
tal
accountofBOP
c.Compensat
ionofempl
oyeesf
rom r
estoft
hewor
ldi
sacr
edi
tcomponentof
bal
anceofpay
ment
soncapi
tal
account
d.I
mpor
tofcapi
tal
goodsi
srecor
dedi
ncapi
tal
accountofBOP

2.I
fthebal
anceoft
radeshowsadef
ici
tof5,
000cr
oreandt
hev
alueofi
mpor
tsi
s
9,
000cr
ore,
thev
alueOfexpor
tsi
s:
(
a)3.
000cr
ore
(
b)4.
000cr
ore
c)5
( .
000cr
ore
d)9
( .
000cr
ore

3.I
dent
if
ywhi
choft
hef
oll
owi
ngst
atement
sist
rue?
a.I
nvi
sibl
e bal
ance i
scal
cul
ated assum ofbal
ance on f
act
orser
vicesand
bal
anceonnon-
fact
orser
vices
b.Bal
anceont
ransf
ersi
sincl
udedi
ncur
rentaccount
c.Expor
tofgoodsi
srecor
dedasnegat
ivei
tem asi
tleadst
oreduct
ionofgoods
i
ntheeconomy
d.I
mpor
tofgoodsi
srecor
dedasposi
ti
vei
tem asi
tleadst
oincr
easei
nthegoods
i
ntheeconomy

4.I
fthebal
anceoft
radeshowsadef
ici
tof3,
000cr
oreandt
hev
alueofi
mpor
tsi
s
9,
000cr
ore,
thev
alueofexpor
tsi
s:
a.3.
000cr
ore
b.4.
000cr
ore
c.6,
000cr
ore
d.9,
000cr
ore