0

Trade deficits, savings and investment - class-XII

Description: trade deficits, savings and investment
Number of Questions: 20
Created by:
Tags: economics government budget and economy open economy macroeconomics public finance and budget
Attempted 0/20 Correct 0 Score 0

Basic activities of an economy are production, consumption and investment.

  1. True

  2. False


Correct Option: A

Adverse balance of payment can be corrected through _________.

  1. more export

  2. import ban

  3. devaluation of currency

  4. all of the above


Correct Option: D

Trade deficit occurs when a country's exports exceeds its imports.

  1. True

  2. False


Correct Option: B

When a country's imports are higher than its exports, the balance is termed as ___________.

  1. trade deficit

  2. trade inflow

  3. income deficit

  4. none of the above


Correct Option: A

Trade deficit is a situation where:

  1. a country's exports exceeds its imports.

  2. a country's imports exceeds its exports.

  3. there is depreciation of the currency

  4. the government fails


Correct Option: B

Trade deficit occurs when a country's ________ exceeds its ________.

  1. exports, imports

  2. imports, exports

  3. demand, supply

  4. none of the above


Correct Option: B

Trade deficits are not alarming if it reflects a rise in investment, which will build the capital stock more quickly and increase future output.

  1. True

  2. False


Correct Option: A

Which of the following action/actions can be taken by the government to reduce the persistent challenge of budget deficit?
1. Reducing the duties on imports
2. Rationalising subsidies
3. Cutting the expenditure of revenue
4. Merging the existing welfare schemes

  1. Only1

  2. 1 and 2

  3. 2 and 4

  4. 2.3 and 4


Correct Option: B
Explanation:

By reducing import duties government revenue receipts will come down. On the other hand only merging welfare schemes will not give guarantee of expenditures on this count.

"Retail investors made Rs 1.9 lakh cr in market rally", was the news in some major financial newspapers. The term "retail investors", as used in this headline, means which of the following types of stock market investors?

  1. Promoters of Companies

  2. Individuals

  3. Foreign Institutional Investors

  4. Mutual Funds


Correct Option: B
Explanation:

A retail investor is an individual who purchases securities for his/her own personal account rather than for an organisation . Retail investors typically trade in much smaller amounts than institutional investors such as mutual funds, pension funds etc, and trade less frequently.  

Hence the term "retail investors" in the newspaper headline means Individuals in stock market investors. 

NRE deposit is _________________.

  1. Non Resident External deposit

  2. Non Resident Extra deposit

  3. Non Resident Exchange deposit

  4. Non Refundable External deposit


Correct Option: A

Expand the term FLCC.

  1. Financial Literacy and Credit Counselling

  2. Financial Literacy Communication Centre

  3. Financial Literacy Call Centre

  4. Fiscal Literacy and Credit Counselling


Correct Option: A

In general, the duration of a budget is  _______ months.

  1. twelve

  2. six

  3. nine

  4. fifteen


Correct Option: A

Small Enterprise in Manufacturing Sector means an enterprise having original investment in Plant and Machinery not exceeding _______.

  1. Rs.15 Lakh

  2. Rs.5 crore

  3. Rs.10 crore

  4. Rs.1 crore


Correct Option: B

Medium Enterprise in Manufacturing Sector means an enterprise having original investment in Plant and Machinery not exceeding ______.

  1. Rs. 10 crore

  2. Rs. 5 crore

  3. Rs. 100 crore

  4. Rs. 1 crore


Correct Option: A

What are official reserve transaction balance?

  1. International reserves owned by Government or other Government agencies.

  2. International reserves owned by star trading houses

  3. GDR of blue chip companies

  4. Balance held in Swiss Bank A/c


Correct Option: A

Rajiv Gandhi Equity Saving scheme was announced in ____.

  1. 2011

  2. 2012

  3. 2013

  4. 2010


Correct Option: B
Explanation:

Rajiv Gandhi Equity Saving scheme was announced in 2012 as a part of the Union budget and aimed at retail investors

Micro Enterprise in Manufacturing Sector means an enterprise having original investment in Plant and Machinery not exceeding _______.

  1. Rs.25 Lakh

  2. Rs. 5 crore

  3. Rs. 10 crore

  4. Rs. 1 crore


Correct Option: A

Full convertibility of Rupee on Trade A/c was declared in _______.

  1. 1992-93

  2. 1989-90

  3. 1999-2000

  4. 1993-94


Correct Option: D

The National income is identified as?

  1. Y=C+I

  2. X-M = Y+I+K

  3. I=s

  4. Y = C + I + G + X M


Correct Option: D

 Three sources of demand for domestic goods include?

  1. Y=s+I+M

  2. Y=c+I+G

  3. Y=G+I+K

  4. Y=X+M-G


Correct Option: B
- Hide questions