laboursonline – MCQs, Mock Tests | ICSE XII MCQ Questions for Class 12 Economics Set-8

Which one is the king of the exchange rate?

1. Fixed Exchange Rate
2. Flexible Exchange Rate
3. Both (a) and (b)
4. None of the above

✅ Correct Answer: 3

Which of the following is true?

1. Fixed exchange rate is determined by the government
2. Flexible exchange rate is determined by market forces (demand and supply of foreign exchange)
3. Both (a) and (b)
4. None of the above

✅ Correct Answer: 3

Which one is a kind of fixed exchange rate?

1. Gold Standard System of Exchange Rate
2. Bretton Woods System of Exchange Rate
3. Both (a) and (b)
4. None of the above

✅ Correct Answer: 3

Which one is a merit of the fixed exchange rate?

1. Promotes Foreign Trade
2. Induces Foreign Capital
3. Increases Capital Formation
4. All the above

✅ Correct Answer: 4

Which one is a demerit of the fixed exchange rate?

1. Ignores National Interests
2. Restricted Movement of Capital
3. Sudden Fluctuations in Exchange Rates
4. All the above

✅ Correct Answer: 4

Which one is a merit of the flexible exchange rate?

1. Simple System
2. Continuous Adjustments
3. Improves Balance of Payments
4. All the above

✅ Correct Answer: 4

Which one is a demerit of the flexible exchange rate?

1. Bad Results of Low Rate
2. Uncertainty
3. Instability in Foreign Exchange
4. All the above

✅ Correct Answer: 4

Which one is a source of the demand for foreign exchange?

1. Imports of Goods and Services from Abroad
2. Investment in Foreign Nations
3. Gift Scheme to Foreign Nations
4. All the above

✅ Correct Answer: 4

Foreign exchange is determined by:

1. Demand for foreign currency
2. Supply of foreign currency
3. Demand and supply in the foreign exchange market
4. None of the above

✅ Correct Answer: 3

The forms of foreign exchange market is/are:

1. Spot market
2. Forward market
3. Both (a) and (b)
4. None of these

✅ Correct Answer: 3

The foreign exchange rate is determined by:

1. Government
2. Bargaining
3. World Bank
4. Demand and Supply forces

✅ Correct Answer: 4

By exchange rate we mean:

1. How much local currency we have to pay for a foreign currency
2. How much of a foreign currency we have to pay for another foreign currency
3. The rate at which foreign currency is bought and sold
4. All of these

✅ Correct Answer: 4

Balance of Trade =?

1. Export of Visible Items – Imports of Visible Items
2. Export of both Visible and Invisible Items – Import of both Visible and Invisible Items
3. Import of Visible Items – Export of Visible Items
4. None of the above

✅ Correct Answer: 1

Which items are included in the Balance of Payments?

1. Visible Items
2. Invisible Items
3. Capital Transfers
4. All the above

✅ Correct Answer: 4

Which one is the visible item of Balance of Payments?

1. Machine
2. Cloth
3. Cement
4. All of these

✅ Correct Answer: 4

Which one is the invisible item of Balance of Payment?

1. Banking
2. Shipping
3. Communication
4. All of these

✅ Correct Answer: 4

Which one is the feature of Balance of Payment?

1. Systematic Accounts
2. Fixed Time Period
3. Comprehensiveness
4. All the above

✅ Correct Answer: 4

Which account is included in the composition of the Balance of Payments?

1. Current Account
2. Capital Account
3. Both (a) and (b)
4. None of the above

✅ Correct Answer: 3

Which one is the item of the Current Account?

1. Import of Visible Items
2. Expenses of Tourists
3. Exports of Visible Items
4. All the above

✅ Correct Answer: 4

Which one is the item of Capital Account?

1. Government Transaction
2. Priva Transactions
3. Foreign Direct Investment
4. All the above

✅ Correct Answer: 4

The component(s) of Balance of Payment is/are:

1. Current Account
2. Capital Account
3. Both (a) and (b)
4. None of these

✅ Correct Answer: 3

Which items are included in the balance of trade?

1. Invisible Item
2. Capital Transfer
3. Visible Item
4. All of these

✅ Correct Answer: 3

Balance of Trade means:

1. Capital Transaction
2. Import and export of goods
3. Total debit and credit
4. All the above

✅ Correct Answer: 2

The reason for the imbalance in the balance of payment is:

1. Natural Reasons
2. Economic Reasons
3. Political Reasons
4. All of these

✅ Correct Answer: 4

Structure of balance of payment includes which account:

1. Current account
2. Capital account
3. Both (a) and (b)
4. None of these.

✅ Correct Answer: 3

Measures to improve the adverse balance of payment includes:

1. Currency devaluation
2. Import substitution
3. Exchange control
4. All of the above

✅ Correct Answer: 4

Foreign Exchange Rate is determined by:

1. Demand for foreign currency
2. Supply of foreign currency
3. Demand and supply in the foreign exchange market
4. None of these

✅ Correct Answer: 3

Types of Foreign Exchange Market are:

1. Spot market
2. Forward market
3. Both (a) and (b)
4. None of these

✅ Correct Answer: 3

In how many sectors is the occupational structure of India is divided?

1. One
2. Two
3. Three
4. Four

✅ Correct Answer: 3

What is another name for the service sector?

1. Tertiary
2. Primary
3. Secondary
4. Agriculture

✅ Correct Answer: 1

What was the nature of the Indian economy on the eve of independence?

1. Stagnant
2. Backward
3. Underdeveloped
4. All of these

✅ Correct Answer: 4

What was the life expectancy at birth in India on the eve of Independence?

1. 44 years
2. 50 years
3. 60 years
4. All of these

✅ Correct Answer: 1

What was the growth rate of per capita income in India on the eve of Independence?

1. 0.9%
2. 0.5%
3. 1.2%
4. 3%

✅ Correct Answer: 2

Which of the following activities is included in the primary sector?

1. Agriculture
2. Services
3. Industries
4. All of these

✅ Correct Answer: 1

In which of the following sectors is manufacturing activity included?

1. Primary
2. Tertiary
3. Secondary
4. All of these

✅ Correct Answer: 3

Where was the first iron and steel company established?

1. Kolkata
2. Jamshedpur
3. Patna
4. Ranchi

✅ Correct Answer: 2

What is the tax or duty on imports called?

1. Tariff
2. Quota
3. Export
4. None of these

✅ Correct Answer: 1

Which of the following was the major occupation on the eve of independence?

1. Industry
2. Services
3. Agriculture
4. None of these

✅ Correct Answer: 3

In which of the following type of economy are resources owned privately and the main objective behind economic activities is profit-making?

1. Capitalist
2. Socialist
3. Mixed
4. Global

✅ Correct Answer: 1

Which of the following is the main objective of carrying out various economic activities?

1. Profit
2. Public welfare
3. Competition
4. Equality

✅ Correct Answer: 2

When was the National Development Council (NDC) set up as an adjunct to the Planning Commission?

1. 1950
2. 1969
3. 1952
4. 1979

✅ Correct Answer: 3

Which of the following had been responsible for the heavy burden of the deal and its interest?

1. BOP deficit
2. BOP surplus
3. Equilibrium
4. None of these

✅ Correct Answer: 1

Agriculture sector contributed _______ percent to the GDP in 1990-91.

1. 24.6
2. 34.9
3. 40.5
4. 59.0

✅ Correct Answer: 2

What is needed to provide protection against natural calamities like floods, drought, locusts, thunderstorms, etc.?

1. Multiple cropping
2. Green revolution
3. Crop insurance
4. HYV

✅ Correct Answer: 3

Which of the following steps promoted the growth of the economy as a whole by stimulating the development of industrial and tertiary sectors?

1. Independence
2. Planning
3. Colonial rule
4. Green revolution

✅ Correct Answer: 2

How many industries have been reserved for the public sector under Industrial Policy Resolution, 1956?

1. 17
2. 21
3. 15
4. 2

✅ Correct Answer: 1

In which year did India adopt the economic reforms?

1. 1991
2. 1993
3. 1998
4. 2001

✅ Correct Answer: 1

Why there was a need for economic reforms in India?

1. Due to fiscal deficit
2. Due to adverse BOP
3. Rise in prices
4. All of the above

✅ Correct Answer: 4

When did the Gulf Crisis take place?

1. 1985
2. 1990-91
3. 1995
4. 1975

✅ Correct Answer: 2

How much loan was provided by World Bank and IMF during the nineties to bail India out of the crisis?

1. $10 million
2. $10 billion
3. $7 billion
4. $20 billion

✅ Correct Answer: 3