XII ECO TEST PAPER 2 BY LPCA

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There are a total 60 questions in this paper out of which 50 questions are to be attempted. This paper is divided
into three Sections:
a. Section A – Contains 24 questions. Attempt any 20 questions.
b. Section B – Contains 24 questions. Attempt any 20 questions. c.
Section C – Contains 12 questions. Attempt any 10 questions.
All questions carry equal marks.
There is no negative marking.

Email *

Part – I Section – A

Instructions: From question number 1 to 24, attempt any 20 questions.

Q1 : Inflationary tendencies emerge when aggregate demand is higher than the aggregate supply. Government Can bring down the aggregate demand by …………. . In short Government can follow the policy of ………. *

1 point

increasing the expenditure ; Deficit budget

increasing the expenditure ; surplus budget

Decreasing the expenditure ; surplus budget

Decreasing the expenditure ; deficit budge

Q2. Spices is a major part of India’s export, higher prices of it will________________Current account surplus. *

1 point

shrink

Expand

either a or b

Neither a nor b

Q3: Which of the following statement is correct *

1 point

Repo rate is generally higher than reverse repo rate

Repo rate is generally lower than reverse repo rate

Repo rate is generally higher than reverse repo rate during inflation

Repo rate is generally lower than reverse repo rate during inflation

Q4: Find the odd one out : *

1 point

Foreign direct investment

Equity Capital

Reinvested earning

Off shore Funds

Q5: Read the following statements Assertion (A) and reason (R). Choose one of the correct alternatives given below: *

1 point

Both Assertion (A) and Reason (R)are true and Reason (R)is the correct explanation of Assertion (A)

Both Assertion (A) and reason (R)are true and Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is true but Reason (R)is false.

Assertion (A) is false but Reason (R) is true.

Q6: Demand deposits are assets for the commercial bank. *

1 point

True

False

Partially true

Can’t Say

Q7: The purpose of maintaining the reserve of foreign exchange by central bank under managed floating Rate system *

1 point

In order to control price fluctuation in the country

To ensure that exchange rate controls the situation of excess demand in the economy

To ensure that exchange rate stays withing the targeted value

To ensure that exchange rate maintains the stability in economy

Q8: Statement 1 : Budget is the detailed financial statement of the estimated receipts and actual expenditures for the coming financial year. Statement 2 : Budget estimates are planned as per neds of the government. *

1 point

Both the statements are true

Both the statements are false

Statement 1 is true and Statement 2 is false

Statement 2 is true and Statement 1 is false

Q9: A NRI gifts Shares to his girlfriend in India. It will be recorded as : *

1 point

unilateral transfer and a part of current account of BOP

unilateral transfer and a part of capital account of BOP.

Capital transfer and a part of capital account of BOP

Capital transfer and a part of portfolio investment

Q10: Quantitative controls are designed to regulate the ………………. And Qualitative controls are designed toregulate the………………….. *

1 point

irection of credit and volume of credit

volume of credit and direction of credit

Quantity of credit and Quality of credit

quality of credit and quantity of credit.

Q11: Identify the incorrect statement : *

1 point

It will be unrealistic to expect all the goals of a plan to be given equal importance in all the plans

India’s five year plans spell out how much of each and every good and service is to be produced

The planners have to balance the goals.

NOTA

Q12. While a small section of farmers changed their cropping pattern from food crops to commercial crops, alarge section neither had resources and technology nor had incentive to invest in agriculure. By large section here we mean *

1 point

Small farmers

Marginal farmers

Both a and b

NOTA

Q13: Inward looking trade strategy policy followed in …………. of India, aimed at substituting imports with domestic production *

1 point

First Five years plan

First seven years plans

First Five Plans

First Seven plans

Q14:: Read the following statements carefully and choose the correct alternatives given below: Statement 1 – The official data on poverty is now made available to the public by the NITI Aayog Statement 2 – It is estimated on the basis of consumption expenditure data collected by the National Statistical Survey Organisation (NSSO) now called as National Statistical Office *

1 point

Both the statements are true

Both the statements are false

Statement 1 is true and Statement 2 is false

Statement 2 is true and Statement 1 is false

Q15: Read the following statements carefully and choose the correct alternatives given below: Statement 1 – Strategic Sale refers to the sale of 51% or more stake of a PSU to the private sector who bids the highest Statement 2 – The ownership of PSU is handed over to the private sector. *

1 point

Both the statements are true.

Both the statements are false

Statement 1 is true and Statement 2 is false

Statement 2 is true and Statement 1 is false

Q16: In …….. a small -scale industrial unit was one which invested a maximum of rupees five lakh; at present the maximum investment allowed is …….. *

1 point

1950, rupee five crore

1955, rupee five crores

1950 , rupee one crores

1955, rupee fifty crore

Q17: Match the statement given under A with the correct statement given under B. *

1 point

(i) a

(i) b

Q18: Horticulture has emerged as a successful sustainable livelihood option and needs to be encouraged significantly. Enhancing its role requires investment in infrastructure like electricity, cold storage systems, marketing linkages, small-scale processing units and technology improvement and ……. *

1 point

HYV Seeds

clean drinking water

Tube wells

Dissemination

Q19: The expenditure incurred by Government of India on running the hospital is revenue in nature. The given statement is *

1 point

Ture

false

partially true

NOTA

Q20: Which of the following is not associated with the poverty measurement. (Choose correct alternative) *

1 point

Poverty line

MPCE, monthly per capita consumption expenditure

Sen index

Population growth rate

Q21: Read the following statements Assertion (A) and reason (R). Choose one of the correct alternatives given below: *

1 point

Both Assertion (A) and Reason (R)are true and Reason (R)is the correct explanation of Assertion (A)

Both Assertion (A) and reason (R)are true and Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is true but Reason (R)is false.

Assertion (A) is false but Reason (R) is true.

Q22: One of the reason that led to drain of India wealth due to commercialization of Agriculture is : *

1 point

Export of Visible Item

Import of Visible Item

Export of Invisible Item

Import of Invisible Item

Q23: Find out the correct statement. *

1 point

The process of liberalization through privatization and Globalisation policies has produced positive, as well as, negative results both for India and other countries.

The process of globalisation through liberalisation and privatisation policies has produced positive, as well as, negative results both for India and other countries.

The process of privatisation through liberalisation and globalisation policies has produced positive, as well as, negative results both for India and other countries.

The process of privatisation through globalisation and Liberalisaton policies has produced positive, as well as, negative results both for India and China

Q24: Modernisation does not refer only to the use of new technology …….. *

1 point

but also making the labor skilled.

But also change in the social outlook.

Both a and b

NOTA

Q25: Read the following statements Assertion (A) and reason (R). Choose one of the correct alternatives given below: *

1 point

Both Assertion (A) and Reason (R)are true and Reason (R)is the correct explanation of Assertion (A)

Both Assertion (A) and reason (R)are true and Reason (R) is not the correct explanation of Assertion (A)

Assertion (A) is true but Reason (R)is false

Assertion (A) is false but Reason (R) is true

PART 1 SECTION B

Instructions: From question number 25 to 48, attempt any 20 questions.

Q26: Under the process of credit creation, Deposit creation comes to an end………. *

1 point

When the total cash reserve becomes equal to statutory reserve

When the total cash reserve becomes equal to total deposits

When the total cash reserve becomes equal to Initial deposits

When the total cash reserve becomes equal to legal reserves.

Q27: Read the following statements: Assertion (A) and Reason (R) Choose one of the correct alternatives given below: *

1 point

Both Assertion (A) and Reason (R)are true and Reason (R)is the correct explanation of Assertion (A)

Both Assertion (A) and reason (R)are true and Reason (R) is not the correct explanation of Assertion (A)

Assertion (A) is true but Reason (R)is false

Assertion (A) is false but Reason (R) is true

Q28: Identify the incorrect statement from the following: (Choose the correct alternative) *

1 point

Operation flood is associated with milk production

Diversification of agriculture is playing an important role in rural development.

Since some kind of collateral is required, small proportion of poor rural households were automatically out of the credit network

Micro credit system has reduced the gap between the banks and rural borrower

Q29: Read the following statements: Assertion (A) and Reason (R) Choose one of the correct alternatives given below: *

1 point

Both Assertion (A) and Reason (R)are true and Reason (R)is the correct explanation of Assertion (A)

Both Assertion (A) and reason (R)are true and Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is true but Reason (R)is false.

Assertion (A) is false but Reason (R) is true.

Q30: Identify the correct statement from the following: *

1 point

Swarnajayanti Gram Swarozgar Yojana (SGSY) renamed as Deendayal Upadhyay Antyodaya Yojana

Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) renamed as Deen Dayal Upadhyaya Antyodaya yojana

National Urban Livelihoods Mission renamed as Deen Dayal Upadhyaya Antyodaya yojana

Pradhan Mantri Jan-Dhan Yojana renamed as Deen Dayal Upadhyaya Antyodaya yojana

Q31: Which states have reduced the poverty level much better than the other two states *

1 point

West Bengal and Tamil Nadu

West Bengal and Tamil Nadu and Bihar

West Bengal, Tamil Nadu and Rajasthan

Andhra Pradesh, Rajasthan, West Bengal and Tamil Nadu

Q32: Find the odd one out *

1 point

Indian Council for Medical Research

University Grants Commission

National Council of Educational Research and Training

National Medical Council

Q33: Read the following statements: Assertion (A) and Reason (R) Choose one of the correct alternatives given below: *

1 point

Both Assertion (A) and Reason (R)are true and Reason (R)is the correct explanation of Assertion (A)

Both Assertion (A) and reason (R)are true and Reason (R) is not the correct explanation of Assertion (A)

Assertion (A) is true but Reason (R)is false

Assertion (A) is false but Reason (R) is true

Q34:Read the following statements Assertion (A) and reason (R). Choose one of the correct alternatives given below: *

1 point

Both Assertion (A) and Reason (R)are true and Reason (R)is the correct explanation of Assertion (A)

Both Assertion (A) and reason (R)are true and Reason (R) is not the correct explanation of Assertion (A)

Assertion (A) is true but Reason (R)is false

Assertion (A) is false but Reason (R) is true

Q35: Read the following statements Assertion (A) and reason (R). Choose one of the correct alternatives given below: *

1 point

Both Assertion (A) and Reason (R)are true and Reason (R)is the correct explanation of Assertion (A)

Both Assertion (A) and reason (R)are true and Reason (R) is not the correct explanation of Assertion (A)

Assertion (A) is true but Reason (R)is false

Assertion (A) is false but Reason (R) is true

Q36: Read the following statements: Assertion (A) and Reason (R) Choose one of the correct alternatives given below: *

1 point

Both Assertion (A) and Reason (R)are true and Reason (R)is the correct explanation of Assertion (A)

Both Assertion (A) and reason (R)are true and Reason (R) is not the correct explanation of Assertion (A)

Assertion (A) is true but Reason (R)is false

Assertion (A) is false but Reason (R) is true

Part – I Section – C

Instructions: From question number 37 to 41, attempt any 4 questions.

Q37: *

1 point

Both Assertion (A) and Reason (R)are true and Reason (R)is the correct explanation of Assertion (A)

Both Assertion (A) and reason (R)are true and Reason (R) is not the correct explanation of Assertion (A)

Assertion (A) is true but Reason (R)is false

Assertion (A) is false but Reason (R) is true

Q38: Find the incorrect statement : *

1 point

To control the situation of Inflation , the government increases cash reserve ratio

To control the situation of deflation , the Government decreases the margin requirement.

To Control the situation of inflation , the Central Bank Buys Securities

To Control the situation of Inflation, the Central Bank sells securities.

Q39: Read the following statements -Assertion (A) and Reason(R), Choose one of the correct alternatives given below: *

1 point

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is true but Reason (R)is false

Assertion (A) is false but Reason (R) is true

Q40: Read the following statements -Assertion (A) and Reason(R), Choose one of the correct alternatives given below: *

1 point

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is true but Reason (R)is false

Assertion (A) is false but Reason (R) is true

Q41:Read the following statements Assertion (A) and reason (R). Choose one of the correct alternatives given below: *

1 point

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is true but Reason (R)is false

Assertion (A) is false but Reason (R) is true

Q42: Choose the correct statement….. *

1 point

The poor lack basic infrastructure and education hence have very limited economic opportunities.

The poor lack basic education and skills and hence have very limited economic opportunities.

The poor lack basic literacy and skills and hence have very limited economic opportunities.

The poor lack basic clean drinking facilities and skills and hence have very limited economic opportunities.

Q43: During Health awareness programme in a society, Doctor Hitarth Khanna emphasized the need for Preventive medicine, curative medicine, social medicine and provision of clean drinking water and good sanitation are the various forms of health expenditures. Health expenditure directly increases the supply of healthy labour force and is, thus, a source of human capital formation .In the above discussion, Social medicine stands for : *

1 point

Vaccination

Opening of Medical Institutions

Spready of Health Literacy

All of the above

Q44: If there is deficit in the current account of balance of payment the balance of trade will also be______.(Fill up the blank with correct alternative) *

1 point

In surplus

In deficit

(a) or (b)

None of these

Q45: Read the following statements -Assertion (A) and Reason(R), Choose one of the correct alternatives given below: *

1 point

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

Assertion (A) is true but Reason (R) is false.

Assertion (A) is false but Reason (R) is true

Q46: *

1 point

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

Assertion (A) is true but Reason (R) is false.

Assertion (A) is false but Reason (R) is true

Q47: Which of the following statements is not true in the context of industrial sector during British rule? *

1 point

There was decline in handicraft industries

The British government promoted capital goods industries

Public sector played a insignificant role

Both b and c

Q48. The revenues from education cess has been earmarked for spending on ………… on *

1 point

Elementary Education

Secondary Education

Higher Education

Both B and C

Part – II Section – C

Instructions: From question number 49 to 60, attempt any 10 questions.

49. Which of the following is a measure to reduce revenue deficit? *

1 point

Borrowing from rest of the world

Cut in subsidies

Disinvestment

All of these

50. High fiscal deficit leads to ___________ in the economy *

1 point

Crowing out effect

crowing in effect

trickle-down effect

none of these

Q51: The percentage change in GDP is *

1 point

0.003

0.10

can’t say

Q52: Recovery of loan is an example of *

1 point

Revenue receipt

Debt Creating Capital receipts

Non Debt creating capital receipt

Capital Expenditure

Q53: Read the following statements Assertion (A) and Reason (R). Choose one of the correct alternatives given below *

1 point

Both A and R are true and R is the correct explanation of A

Both A and R are true but R is not a correct explanation of A

A is true but R is false

A is false and R is true

Q54:Which of the following budget is suitable for developing economies? *

1 point

Deficit Budget

Balanced Budget

Surplus Budget

None of these

Q55According to the given text, the 1991 crisis was caused by ___________________ which resulted ina current account deficit. *

1 point

Excess supply

Excess demand

Fall in demand

Fall in imports

Q56. Read the following statements carefully and choose the correct alternatives given below: Statement 1 – The Covid crisis has been triggered by a fall in production resulting in fall in demand. Statement 2 – The pandemic induced lockdown brought about a sharp economic contraction. *

1 point

Both the statements are true.

Both the statements are false

Statement 1 is true and Statement 2 is false

Statement 2 is true and Statement 1 is false

Q57: Read the following statements – *

1 point

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is true but Reason (R) is false.

Assertion (A) is false but Reason (R) is true

Q58: In the light of the given text and common knowledge, identify the incorrect statement: - *

1 point

The current economic crisis is not caused by excess demand.

The 1991 reforms could not avert the crisis which the country was facing.

Liberalisation was adopted as the guiding principle of governance in 1991

Post pandemic, individual sectors should be looked closely. Sectors that need reforms should be identified and corrective action should be taken.

Q59: Read the following statements carefully and choose the correct alternatives given below: *

1 point

Both the statements are true

Both the statements are false.

Statement 1 is true and Statement 2 is false

Statement 2 is true and Statement 1 is false

Q60: Read the following statements - Assertion (A) and Reason (R): *

1 point

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is true but Reason (R) is false.

Assertion (A) is false but Reason (R) is true

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