CBSE Class 12 Economics Term-1 2021-22: 50 Important MCQs Questions With Answer
In this post I have provided class 12th MCQs with answer for economics term-1 board exam 2021-22. These MCQs are very important and may be ask in coming Board examinations.
CBSE Class 12 Economics Term-1 2021-22: Chapter-Wise Important MCQ Questions With Answers
For Study Material: Click Here
CBSE Class 12 Economics Term-1 2021-22: 50 Important MCQs Questions With Answer
For Study Material: Click Here
In this year CBSE Class 12 Economics Term-1 exam is scheduled to be held on 15th December 2021. From now on only a few days have left for the Economics term-1 examination 2021-22. That is why here we are providing the full resources for CBSE Class 12 Economics Term-1 Exam 2021. These MCQs are absolutely free of cost and can be very helpful for the candidates preparing for the term-1 examination 2021-22. Here we are providing CBSE Class 12 Term-1 Economics Important MCQ Questions With Answers for all chapters.
Given Below Are The Class 12th Economics 50 Important Questions With Answer:
Q1. Central Bank is an
(a) Apex bank
(b) Rural bank
(c) Regional bank
(d) Commercial bank
Ans: (a) Apex Bank.
Q2. What do you mean by credit creation by commercial banks?
(a) It is the process of loan creation
(b) It is the process of creation of foreign exchange
(c) It is the process of total withdrawal creation
(d) It is the process of total deposit creation
Ans: (d) It is the process of total deposit creation.
Q3. Open market operations is
(a) Buying and selling of currency by the central bank
(b) Buying and selling of securities by the central banks
(c) Buying and selling of securities by the commercial banks
(d) Buying and selling of foreign exchange by the central bank
Ans: (b) Buying and selling of securities by the central banks.
Q4. Legal reserve ratio is equal to
(a) CRR÷SLR
(b) CRR-SLR
(c) SLR-CRR
(d) CRR+SLR
Ans: (d) CRR + SLR.
Q5. Which of the following is the narrow measure of the money supply?
(a) M2
(b) M3
(c) M1
(d) M4
Answer: (c) M1
Q6. High Powered Money includes:
(a) C + DD + OD
(b) C + R + OD
(c) C + R + TD
(d) C + DD + TD
Ans: (b) C + R + OD
Q7. Credit Multiplier is:
(a) 1/CRR
(b) cash×1 /CRR
(c) Cash x CRR
(d) none of these
Ans: (a) 1/CRR
Q8. Capital Receipts
(a) Create liability for the private sector
(b) Create liability for the government
(c) Do not create liability for the private sector
(d) Do not create liability for the government
Ans: (b) Create liability for the government
Q9. The policies useful to reduce inequalities of income are the
(a) Monetary policies
(b) Public distribution policies
(c) Budgetary policies
(d) Foreign policies
Ans: (c) Budgetary policies
Q10. Where and when was the word budget first used?
(a) France, 1734
(b) America, 1740
(c) England, 1733
(d) Germany, 1731
Ans.-(c) England, 1733
Q11. Which of the following is not an item of revenue receipt-?
(a) Tax income
(b) Dividend
(c) Grant
(d) Non tax income
Ans.-(c) Grant
Q12. In India, one rupee note is issued by:
(a) Reserve Bank of India
(b) Finance Ministry of Government of India
(c) State Bank of India
(d) None of these
Ans- (b) Finance Ministry of Government of India
Q13. Which is included in indirect tax?
(a) Income tax
(b) Wealth tax
(c) Excise Duty
(d) Gift tax
Ans- (c) Excise Duty
Q14. What is a balanced budget?
(a) govt. income is less than govt. expenditure
(b) govt. expenditure is less than govt. income
(c) govt. expenditure and govt. income is equal
(d) None of the above
Ans- (c) govt. expenditure and govt. income is equal
Q15. The ratio of total deposits that a commercial bank has to keep with Reserve Bank of India is called (choose the correct alternative) [1]
(a) Statutory liquidity ratio
(b) Deposit ratio
(c) Cash reserve ratio
(d) Legal reserve ratio
Ans- (c) Cash reserve ratio.
Q16. Aggregate demand can be increased by : (choose the correct alternative) [1]
(a) Increasing bank rate
(b) Selling government securities by Reserve Bank of India
(c) Increasing cash reserve ratio
(d) None of the above
Ans- (d) None of the above.
Q17. Balance of Payments is an accounting statement that records monetary transactions between ________.
(a) Residents of a nation and the rest of the world
(b) Non-residents and the rest of the world
(c) Residents of a nation and non-residents
(d) None of the above
Ans- (a) Residents of a nation and the rest of the world
Q18. Balance of trade is the ___________.
(a) Difference between export and import of services
(b) Total of export and import of services
(c) Difference between export and import of goods
(d) Total of export and import of goods
Ans- (c) Difference between export and import of goods
Q19. Import and export of services are known as ________.
(a) Nominal trade
(b) Invisible trade
(c) Visible trade
(d) None of the above
Ans- (b) Invisible trade
Q20. Trade Deficit occurs when ______________.
(a) Export of goods is less than imports of goods
(b) Export of goods is more than imports of goods
(c) Export of services is less than imports of services
(d) Export of services is more than imports of services
Ans- (a) Export of goods is less than imports of goods
Q21. When payments of foreign exchange are more than receipts, then the Balance of Payments is __________.
(a) Surplus
(b) Deficit
(c) Balanced
(d) None of the above
Ans- (b) Deficit
Q22. If the trade deficit is Rs. 1000 crores and the import of goods is Rs. 2000 crores, then the export of goods will be Rs. _________.
(a) 2000 crores
(b) 1000 crores
(c) 1500 crores
(d) 500 crores
Ans- (b) 1000 crores
Q23. What was the life expectancy at birth in India on the eve of Independence?
(a) 44 years
(b) 50 years
(c) 60 years
(d) All of these
Ans- (a) 44 years
Q24. What was the growth rate of per capita income in India on the eve of Independence?
(a) 0.9%
(b) 0.5%
(c) 1.2%
(d) 3%
Ans- (b) 0.5%
Q25. When were Railways introduced in India?
(a) 1830
(b) 1860
(c) 1900
(d) 1853
Ans- (d) 1853
Q26. In the history of demographic transition, which year is regarded as the year of great divide?
(a) 1901
(b) 1902
(c) 1921
(d) 1923
Ans- (c) 1921
Q27. Which of the following statement is true regarding the demographic profile of India during the colonial rule?
(a) Life expectancy was 63 years
(b) Infant mortality rate was around 70 per thousand live births
(c) Overall literacy level was less than 16 per cent
(d) Both birth rate and death were quite low
Ans- (c) Overall literacy level was less than 16 per cent
Q28. Term HYVP stands for?
(a) High Yielding Varieties Product
(b) High Yielding Various Programme
(c) High Yielding Varieties Programme
(d) High Yielding Various Products
Ans- (c) High Yielding Varieties Programme
Q29. The planning commission was set up in which year in India?
(a) 5th March, 1951
(b) 25th April, 1951
(c) 20th March, 1951
(d) 15th March, 1950
Ans- (d) Planning commission was set up on 15th March 1950.
Q30. What is the year of India’s twelfth five-year plan?
(a) 1997 to 2002
(b) 2002 to 2007
(c) 2012 to 2017
(d) 2007 to 2012
Ans- (c) The twelfth five-year plan ran from 2012 to 2017.
Q31. The licensing policy aimed at:
(a) Promoting regional equality
(b) Check undue expansion of industrial sector
(c) Both a) and b)
(d) None of the above
Ans- (c) Both a) and b)
Q32. Agriculture sector contributed __ percent to the GDP in 1990-91.
(a) 24.6
(b) 34.9
(c) 40.5
(d) 59.0
Ans- (b) 34.9
Q33. What is the other name of the World Bank?
(a) Federal Bank
(b) ICICI
(c) IBRD
(d) Bank of America
Ans- (c) IBRD
Q34. WTO was established in the year____
(a) 1995
(b) 1948
(c) 1996
(d) 1994
Ans- (a) 1995
Q35. which of the following is a policy initiated under New Economic Policy?
(a) Liberalization
(b) Privatization
(c) Globalization
(d) All of these
Ans- Liberalization
Q36. When did the Gulf Crisis take place?
(a) 1985
(b) 1990-91
(c) 1995
(d) 1975
Ans- (b) 1990-91
Q37. Refers to transfer of ownership, management and control of the public sector
enterprises to the entrepreneurs in the private sector.
(a) Liberalization
(b) Globalization
(c) Privatization
(d) None of these
Ans- (c) Privatization
Q38. The norm AICTE stands for:
(a) All India Council for Technology Education
(b) All India Council for Technical Education
(c) All India Commission for Technology Education
(d) All India Commission for Technical Education
Ans- (b) All India Council for Technical Education
Q39. Human capital is called investment that brings:
(a) Quantitative improvement in labour
(b) Qualitative improvement in labour
(c) Both
(d) None
Ans- (b) Qualitative improvement in labour
Q40. Stocks/shares of the companies are known as:
(a) Human Capital
(b) Physical Capital
(c) Financial Capital
(d) None
Ans- (c) Financial Capital.
Q41. Amartya Se, noted Noble Laureate, has developed an index known as
(a)Poverty Gap Index
(b) Sen. Index
(c) Squared Poverty Gap
(d) Income disparity Gap Index
Ans- (b) Sen. Index
Q42. Estimation of poverty in urban areas is at the consumption of per day calories is:
(a) Less than 2000
(b) Less than 2100
(c) Less than 2400
(d) Less than 2200
Ans- (b) Less than 2100
Q43. In which year was NREGA enacted?
(a) 2005
(b) 2000
(c) 1999
(d) 1993.
Ans- (a) 2005
Q44. When was the National Bank for Agricultural and Rural Development set up?
(a) 1962
(b) 1972
(c) 1982
(d) 1992
Ans- (c) 1982
Q45. Which source of credit had emerged to fully integrate the formal credit system into the overall rural social and community development?
(a) Self-help Groups
(b) Regional Rural Banks
(c) Commercial Banks
(d) Land Development Banks
Ans- (a) Self-help Groups
Q46. Which of the following is an institutional source of rural credit?
(a) Moneylenders
(b) Regional Rural Banks
(c) Traders
(d) Landlords
Ans- (b) Regional Rural Banks
Q47. Who was the first administrator-statesman to attempt planning as a means for economic development?
(a) Sir CP Ram swami Ayer
(b) M Viswesvarayya
(c) VT Krishnamachari
(d) C Rajagopalachari
Ans- (b) M Viswesvarayya
Q48. Which Indian state has the largest number of cotton textile mills?
(a)Madhya Pradesh
(b) Maharashtra
(c) Gujarat
(d) West Bengal
Ans- (b) Maharashtra
Q49. Golden Revolution relates to …………
(a) Horticulture
(b) Sericulture
(c) Pisciculture
(d) None of these
Ans- Horticulture
Q50. The following factors are responsible for land degradation except ………….
(a) Shifting cultivation
(b) improper crop rotation
(c) afforestation
(d) indiscriminate use of agrochemicals
Ans- (c) afforestation