CBSE Class 12 Economics Term-1 2021-22: 50 Important MCQs Que With Ans

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

 

 

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