Based on NTA Mock Test COMMERCE Each Model Test Paper Consists of : Paragraph Based MCQs. © Accountancy Assertion & Reason Type MCQs. © Business Studies Conceptual MCQs O Economies O MathematicsAttempt only 40 questions out of the given 50 questions. Full Marks: 40 (Time: 45 Minutes) - Decrease in Supply ofmoney refers correct alternative) a, currency held by the public b. currency held by Reserve Bank of India (RBI) c.curreney held by the public and demand deposits with commercial banks currency held in the government account (Choose the . An Indian real estate company receives rent from Google in New York. This transaction would be recorded on side of account. (Fill up the blanks with ‘correct altemative) a, credit, current «debit, capital bacredit, capital 4, debit, current Cash_Reserve Ratio) will lead to. (choose the correct alternative) a fall in aggregate demand no change in ageregate demand ccovise in aggregate demand 4. fall in general price level . Assertion (A): India became an exporter of primary products and an importer of finished ‘consumer and capital goods produced in Britain, Reason (R). Restrictive policies of commodity production, trade and tariff pursued by the colonial government adversely affected the structure, composition and volume of Indias foreign trade. a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A) b. 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 4 Assertion (A) is false but Reason (R) is true adopted “One Child Policy” as ‘a measure fo control population. (Choose the correct alternative) a. India c. Pakistan bChina id. Russia 6. Supply of money refers to the Quantity to the quantity of money in the economy- 4. Flow of money during a calendar year ». Flow of money during a financial year stock of money as on 31 march, only 4, Stock of money as on any point of time What do you mean by credit creation by ‘commercial banks? a. Iisa process of loan creation b, Itis the process of creation of foreign of foreign exchange «Its the process of total withdrawal creation d. It is the process of total deposit creation 8, Identity the correetly matched pair ofthe items in column A to that of column B Column A 1 Supply of money Column B a, Money in circulation at a point b.Supply of money. ‘considered over the period Money held by the public and the bank today 4. Supply of money studied at point of ime b.2b d4ed 2. Stock of money 3. Flow of money 4, Reserve money ala cee9. Which of the following is an example of direct tax? a. VAT c, Entertainment tax . Excise duty . Wealth tax 10, Which of the following is the component of a budget? 1, Fiscal budget «, Both of these », Capital budget a.None of these 11, The amount collected by the government in the form of interest, fees, and dividends is known as a, Taxrevenue receipts b. Capital receipts c, Non-tax revenue receipts 4 None of these 12, Economic transactions include, which of the following a, Visible items ¢, Unilateral transfers b. Invisible items 4. All of the above 13, Balance of trade is a, Deference between export and import Oof goods, +b, Sum total of export and import of goods Difference between export and import of, 4. Sum total of export and import of'services 14, Gifts and grands"feecived fiom abyoad are recorded on which side of BOP account? a, Credit side of current account b. Debit side of current account «, Credit side of capital account 4. Debit side of capital account 15. In the production of sugar, sugarcane is a. A final good b.A capital good «, An intermediate good 4. None of these 16, Net investment is equal to a, Gross investment + depreciation b. Gross investment ~ depreciation ¢, Gross investment * depreciation 4. Gross investment + depreciation 17, Which of the following is not correct? a. NNP at market price = GNP at market price + depreciation b.NDP at market price = NNP at market price ~ net factor ineome form abroad © c. NDP at factor cost = NDP at market price Indirect taxes + subsides .GDP at factor cost = NDP at factor cost + depreciation 18, What is the cause of Keynesian perfectly elastic Aggregate Supply curve? 1a, Wage price rigidity 'b, Constant Marginal Product of Labour ©. Both of these 4.None of these 19, What is a fiscal measure of correcting deficient demand 4. Increase in public expenditure and decrease in Decrease in public debt c. Deficit financing All o these 20, The value of multiplier is a. UMPC b MPS . /IEMPS del/MPC-1 21, Which oris tue? ‘a, MPC + MP! b.MPC + MPS <1 c. MPC * MPS 4. MPC + MPS > 1 22, National Bank for Agricultural and Rural Development (NABARD) was set up in 1982 as, althe body to coordinate the activities of all institutions involved in the rural financing, system. (Fill in the blank with correct alternative) 2. cooperative b.apex ‘e. micro eredit 4d. Private eredit 2. refers to the proneness to fall ill. (Fll in the blank with correct alternative) 8. Morbidity ». Mortality Both (a) and 4. None of the above 24, In India, one rupee note is issued by 1, Reserve Bank of India b. Finance Ministry of Government of India ¢. State Bank of India 4.None of these Import and export of services are known as b.nvisible trade None of the above ‘2. Nominal trade c. Visible trade 26, WTO was established in the year 2, 1995 b. 1948 ©. 1996 4.199427. 28, 29, 30. 3. 32, ‘The problem of ‘what to produce’ relates to: 1. The choice of technique ». Distribution of income © . Market value of the goods and services d. The choice of goods and services [Particulars 19s1_[isst_ [i991 feoo1 [2016.17 [Real per capita income (in Rs) [7.651 [12.174 [15.7487 [23.095 [77.659 [Crude death Rate (per 1.000) [25.1 fi2s fos faa [63 [population infant mortality rate 16s [no [so fos [as Life expectancy at [Male [37.2 [sai |s07 [aaa [a7 [Birth (in years) [Female [36.2 [547 [609 [669 [70 [Literacy Rate (%) 16.67 [43.57 [5251 [65.20 [76 Source: Economic survey for various years, Ministry of finance National statistical office & ministry of statistics and programme implementation, government of India, On the basis of the above - mentioned information answer the following question: ‘The real per capita Income of India (as per the given data) has increased by ___(appfoximately) between 1951 and 2016-17. (Fill up the blank with correct alternative), 2.915% b, 1015 % c. 815% 4.715% According to the givet! text, was adopted as the guiding prineiple of govemance and all ‘governments since 1991, a. Modernization ‘cePrivatization b. Liberalisation d. Globalization Which ofthe following organisation frame 5 year plan: 2. Yojana Ayog ’, National development c. Finance ministry Home ministry Small scale industry is: 4. Labour intensive b. Capital intensive c. Complementary to large scale industries 4.None of these Stabilization measures and structural reform _measures are the two groups of which policy? a. New industrial policy 'b, New Economic policy «©. Trade policy <. Monetary policy 33, Which institution regulates the financial sector in India? a. SEBI ©. SBI b. NABARD. RBI 34, Which of the following is a Navaratna? 4, Indian oil corporation Limited b, Steel Authority of India Limited c. Hindustan Acronauties Limited 4, Aitport authority of India 35. When price index increases it means a. Value of currency increases », Value of currency decreases ©. No effect of value of currency 4d. None of the these 36, National literacy mission is related to a. Primary education —_b. High education . Rural 4. Adult education 37. The difference between gross and net is: 4. Depreciation b.NFIA ce, Net indirect Tax. 4. Subsidies38, Market price includes: a. NEIA », Depreciation ¢, Net indirect tax 4. None of the above 39, IENFIA is negative, a, Factor income to abroad will be less than factor income form abroad b.Factor income to abroad will be equal income from abroad . Factor income to abroad will be more than factor income from abroad 4. None of the above 40. Which of the following is not included while calculating national ineome through value added method? a, Intermediate goods >. Services for self consumption «, Second hand goods 4. All ofthe above Q. Read the following hypothetical text and answer ‘the questions no. 4 ‘The performance ofIndian economy during the period of first seven five year plans (1950-1990) was satisfactory if not very impressive, On the eve of independence, India was an industrially backward country, but during this period of first seven plans our industries became far more diversified, with the stress being laid on the public investments inthe industrial sector. The policy cof import substitution led to protection of the domestic industries against the foreign producers but we failed to promiote a strong export surplus. Although public sector expanded toa Jarge extent but it could nat bring desired level of improvement in the secondary sector. Excessive governmentregulations prevented the natural trajectory of growth of entrepreneurship as there was ‘no competition, no innovation and no modernization fon the front of the industrial sector. Many Public Sector Undertakings (PSU's) incurred huge losses ‘due to operational inefficiencies, red-tapism, poor technology and other similar reasons. These PSU's ‘continued to function because it was difficult to close a ‘government undertaking even itis a drain on country’s limited resources. On the Agricultural front, due to the ‘measures taken under the Green Revolution, India more ‘or less became self-sufficient in the production of food. _grains, So the needs for reform of economic policy was ‘widely felt in the context of changing global economic scenario to achieve desired growth in the country. © 41, Which of the following was not a reason for the public sector to play a major role in the initial phase of Indian Economic Planning? (choose the correct altemative) 4. Private entrepreneurs lacked sufficient capital for investment , Government aimed at social welfare, €.The market was big enough to encourage private industrialists for investment. .The government wanted to protect the indigenous producers from the foreign competition Q. Read the following hypothetical text and answer the questions no. 42: Sustainable development is the Synonymous in the minds of many with tho¢olour green and for good reasons. Twenty years ago, at the First Earth Summit at Rio de Janetio, in Brazily world leaders set out ‘what today is conventional wisdom: SOCIAL AND "ONOMIC HUMAN PROGRESS - cannot be divorced from environmental protection unless both are advanced together, both will flounder together Sustainable development is as much about health, education and jobs, as it is about the ecosystems, Tis about ever widening inclusion and movement away from decisions that erode democratic space and do not address social inequality, intolerance, and Violence. Sustainable Development is about changes that transform impoverished people, communities, and countries into informed, educated healthy and productive societies. It is about wealth creation that generates equality and opportunity, Sustainable Development is about consumption and production patterns that respect planetary boundaries; itis also about increasing tolerance and respect for human rights at all levels. Building on human development legacy that oriented with Economists like Amartya Sen and MahbubUlHaq and was captured by the first, ‘Human Development Report in 1990. United Nations Development Programme (UNDP) has long promoted altemative approaches to measure human progress, along with the Human Development Index (HDD, ‘Today, we are building on this legacy by exploring how to adjust the index to reflect environmental sustainability, so that governments and citizens might better track real progress towards truly sustainable development. This must be our collective objective.42, Which of the following is not one of the ways to attain the goal of sustainable development? (choose the correct alternative) a, Use of cleaner fuels b. Use of traditional knowledge and practices. © Spreading awareness 4. Sticking to methods to promote inequalities. Q. Read the following hypothetical text and answer the questions no. 43: Infrastructure is often called as the lifeline of the ‘economy of a nation. It comprises of a well established and well knit network of power, telecom, ports, airports, roads, civil aviation, railways and road transport in ‘2 country. Countries need adequate infrastructure so that various economic activities in an economy are executed efficiently, smoothly and above all in time. The deficiencies in the of infrastructural needs of a nation cannot be made up through imports rather the best approach is that it must be created within the domestic economy to put it on through the higher ‘growth trajectory. However;building of infrastructure requires large and lumpy investment and has a relatively long gestation period. Due to this fact, infrastructural facilities are either built or run by the government land public sector enterprises and if private sector is permitted to make investment and run infrastructural projects, they must be regulated jin order to ensure: ‘quality infrastructure to one and all inthe society 43, Identify the main’ category of infrastructure ‘mentioned inthe above paragraph (choose, the ‘correct altemmative) a, Social ». Economic ‘e, Personal dd. Financial 44, 45, 46. 47. 48, 49. ‘Macro economics studies: a. Employment opportunities in the economy ’. Theory of supply of commodities . Elasticity of demand in scooter 4. Price of wheat in the market Employment Theory is related to Static Economies. b, Miero Eeonomies c.Macro Economics, None of these Which one is included in the three-sector model?” a. Family b. Firm ‘e. Government 4.All ofthe these Deficient of excess demand can be corrected through a. Fiscal policy «©. Both (a) and (b) If the value exports exceeds the value of visible imports, the eurrent accourt deficit will be: 2. positive b. Negative Positive or negative d.None of these by Monetary policy 4. None of these MPC being equal to 0.5, will be, if income ‘nereases by Rs, 100? a. RS, 60) b.Rs. 50 ols. 40 G.Rs.70 (Consumption function isa functional relationship between: a. Income and saving. ». Price and consumption «. Income and consumption Income, consumption and saving© Le 2a) 3.0) 4) 5.0) 6.@ 7.) 8.) 92.@) 10.) © 21. 2@ 31. @) 32.) 33. (a) 34.(0) 35. (b) 36. (a) 37.@) 38. (0) 39.0) 40. (a) 41. 2a) 43. (b) 44.0) 45.(0) 46. (a) 41.0) 48. (6) 49. (b) 50. (@) *CUET ° *cuer™ !*cuet°) *CUET ° &.. 022 on (GENERAL TEST For more Downloads, FREE Chapters & Model Paper for CUET visit: httpsi/altisvortex.com/cuet-updates/