COMMERCE BABATim 90 Minutes Maximum Marks : 40 The Question Paper contains three sections Section A has 24 questions. Atiempt any 20 questions Section B has 24 questions. Attempt any 20 questions Section C has 12 questions, Attempt any 10 questions: All questions carey equal marks. There is no negative marking. SECTION -A Section — A consists of 24 questions, Attempt any 20 questions from this section, The first attempted 20 questions would be evaluated. s Balance of trade 1s @ part of (Choose the correct alternative) (a) Current account BOP (b) Capital account BOP (©) Official reserves account (@) None of these Which of the following are the objectives of government budget? (Choose the correct answer) (a) Distribution of income and wealth (b) Economie stability (©) GDP growth (6) Allof these Which of the following is not concemed with banking organisation? (a) Bank rate (b) Fiscal deficit (©) Credit creation (6) Cash reserve ratio ‘An NRI working in Scudi Arabia sends @ part of his savings to his parents living in India, This transaction is recorded on which side of the Balance of Paynienis Aevount of Saudi Arabi (a) Credit side of capital account (b) Debit side of capital account (6) Credit side of current account (6) Debit side of current account Read the following statements carefully and choose the correct alternative from the following: Statement 1 — Revenue receipts impact asset-lability status of the government. Statement 2 ~ Capital receipts do not impact asset-liability status of the government. Altern: (a) Both the statements are true (b) Both the statements are false. (©) Statement 1 is tue and Statement 2 is false, (@) Statement 2 is true and Statement | is false. Once a person told to a group of students that one institution in country performs the function of accepting deposits, granting loans and meking investment, with the aim of profits Choose the coorect alternative which specifies towards the concept told by him: (a) Commercial Bank (b) Central Bank (0) Neither (a) nor (b) —_(@) Both (a) and (b) ‘Two classmates are discussing about the component of demand deposits. They are and (Fill up the blanks with cor QKMERCE BABA(a) Fixed deposits, seving account deposits (b) Curteat deposits, recurring deposits () Saving secount deposits, current (a) All (ype of deposits 8. Read the following statements carefully and choose the correct alternative from the following: Statement 1 — Balance of Trade (HOT) is the difference between visible exports and visible imports. Statement 2 — Deficit in balance of payments refers to @ situation when outflow of foreign exchange is more than its inflow. Alternatives: (a) Both the statements are true, (b) Bosh the statements are false (6) Statement | is true and Statement 2 is false (€) Statement 2 is true and Statement 1 is Pale: 9 Which of the following is not included in the current account of BOP? count deposits (a) Government transaction 8) Private transaction (6) Foreign direct investment (@) Allo these 16, Out of total minimum reserve that RBL rust maintain, the value of gold must be: (a) 2200 craras (6) 2150 crores (6) PLS crores (€) 7105 crovos 11, Objectives of planning in India are (a) Growih (b) Selfeliance {o) Modernisation (©) All of these 12, The literaey rate and Female literacy rate of India at the time of independence were: (a) 16%, % (b) 12%, 1% (0) 32%, [0% (6) 16% 12% 13. Which one of the following 1s not true about the small-scale industries? (a) Ieis labour intensive. (b) It promotes equality () It facilitates locational exibiity. (eNone of these 14, Read the following statements carefully and choose the correct alternative from the following: Statement 1 — Heavy presture of population #8 one of the eauses of poverty Statement 2 ~ Jai Prakash Rozgar Guarantee Yojna (JPRGY) was aopled by the goverament of India to remove poverty. “Alternatives: (a) Both the statements are trus, (©) Both tbe statements are false (©) Statement | is true and Statement 2 is false (@) Statement 2 is te and Statement 1 ig fase ing statements—Ascertion (A) and Reason (R): Cause end effect relation between human capital and economic growth ean be easily proved. Reason (R) ~ Due 10 measurement problems, itis difficult to establish a relation of cause ancl effect from the growth of human capital (education and health) to economic growth, From the given alternatives choose the correct ones Alternatives: (a) 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 covtect explanation of Assertion (A) (6) Assertion (A) is trac but Reason (R) is false (@) Assertion (A) is false ut Reason (R) is true 16, High death rate and high birth rate are the key characteristics of economy, COMMERCE BABA (a) A developed (b) A developing (c) An underdeveloped () None of these17, From the set of statements given in Column Land Column Il, choose the correct pair of statements Column F ‘Column (a) | Barter system (| Total liability ofthe monetary authority of the counary (B) Fiat money (ii) | Double coincidence of wants (C)| High powered money Gi) | Curreney notes and coins made legal tender (D) |My, My. My, My (iv) | Akemative measures of money supply Alternatives: (2) (®) = Gi, (BY ~ Gd, (©) — @, (D) ~ (b) A) Gi, (B)~ 9, C)—@, (D)— iv) (6) (A) Go), B) = Gi. (© ~ Gi, D)~ (6 (A) (0, B) Gi}, C)- 6, (D)- GW) 18, To strengthen the institutional sources, an apex bank © look afler sural finance was set ap in 1982. It (a) SHGS (b) NABARD, NareD @ Rural Credit 19, If the government establishes a new university in the govemment budget it will be a type of a in the blank) (8) Revenus nature income (b) Capital nature expenciture (c) Revenue nature expenditure (2) Capital nature income 20, ‘The poverty line is determined on the basis of monetary value of the minimum subsistence level which is (2) Same in both rural and urban areas (b) Higher in rural sreas (©) Higher in urban areas (@) Only slightly higher in urban areas 21, Money multiplier isthe inverse of (o) CRR (b) ERR (0, Deposits (@) Currency. 22, In post reform era indussrial growth record Slowdown, whigh oF the Following reason caused such a slowdown? (2) Cheaper import (b) Inadequate investment in infiastructure (6) High tariff barriers in developed nations (@ All of these 23, Read the following statements carefully and choose the correct alternative from the following: Statement 1 — The central Hank is an apex bank that controls the entre banking system of a country Statement 2 ~ ICICI is the Ceattal Bank of India Alternatives: (a) Both the statements are true (b) Both the statements are Flse () Statement 1 is tue and Statement 2 is false. (@) Statement 2 is true and Statement 1 is false. 24, ritish rulers’ policy towards industeialisation in India was co make India mainly [a) Importer of peimary produets from Britain and exporter of finished products w Britain (b) Importer of finished products from Britain and exporter of primary products to Brita [) Exporter of both primary products and finished products (€) Importer of both primary products and finished products SECTION -B Section — B consists of 24 questions. Attempt any 20 questions from this section. The first attempted 20 questions would be evaluated. COMMERCE BABA2, Read the following statements Assertion (A) and Reason (R): Assertion (A) ~ Metro rail and flyover work announced in Delhi, Noida, Panipat and Kerala Reason (R) ~ Such announcements srease the revenue expensiture of the govemment, From the given alternatives choose the correet one: Alternatives: (8) Both Assertion (A) end Reoson (R) are true and Reason (R) is the correct explanation of Assertion (A). (b) Both Assertion (A) and Reason (R) are true and Reasoa (R) is aot the eorest explanation of Assecton (A). (6) Assertion (A) is tue but Reason (R) is false {@) Assertion (A) is fale bur Reason (R) is te 26, Financial system in India is regulated by (2) Goverament of India (b) SEBL (©) RBI (@) None of these 27, Read the following statements—Assertion (A) and Reason (R): Assertion (A) ~ The British important contributions Reason (R) — Along with the development of roads:and:railways, the colonial dispension also took measures for developing the inland trade and sea lanese From the given alternatives choose the correct one: Alternatives: (2) Boih Assertion (A) and Reason (R) are tue and Reason (R) is the correct explanation of Assertion (A). (b) Both Assertion (A) and Reason (R| are wue and Reason (R) is not the correct explanation of Assertion (A). (©) Assertion (A) is true but Reason (IR) is false (@) Assertion (A) is false but Reason (R) is tue, 28, Idemiify the incorrect statement from the following: (a) Singe independence the government has attempted to redistribute land. (b) Even today agriculture is the prineiffal means of livelihood (©) The poor is not deprived of quality education anid able to/acquire skills which fetch better income, (@) Porhend availability of land for cultivation has sicadily declined. 20, Read the following statoments—Assertion (A) and Reason (R): Assertion (A) — During British rule, India saw human drain of wealth Reason (R) ~ India generated large export surplus during this period From the given alternatives choose the correet one: Alternatives: (2) 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 fase. (W) Assertion (A) is false but Reason (R) is tue, roduced the railways in India in 1850 and it is considered as one of their most 30, From the set of statements given in Column and Column Il, choose the correct pair of statements: Colume T Column I (A)] Auriculture seetor Drain of India’s wealth (B)} Industrial sector (©) Foreign trade (0) | Low titeraey rate Lack of soci infrastructure Low publie investment Surplus labour Alternatives: (8) (A) Gv), ) ~ (9, ©) (i), (D) — Gi) COMMERCE (b) (A) @, (BY - iv, ©) (D) ~ (ii) BABA(©) (A) ~ Gv), (B) ~ Gili, (©) ~ (9, (D) ~ ti. @) (A)~ Gi, (B) ~ i, ()-(Y, -@ 31. Incidence of Poverty, by Social Groups 1993-1994 and 2004-2005 Year Rural Urban sc ST All SC st All 1993-94 83 520 373 a8 40.1 34 2004.05 368 477 283 30.8 339 For which Social Group, ineidence of poverty was higher than the national average in rural areas in 1993-947 (@) SC Rucal (©) ST Rural (©) SC Uiban (@ ST Urban 32, From the set of stutements given in Column 1 and Column Il, choose the corect pair of statements: Column T Column TT @) [Firs oficial Consus 7% (B) | Year or Great Divide Gi 25% (©)| share of workforce in manufacwuiniand service secxdh| (i) | 1921 (0) | Share of workforce in agriculnae sectors div) [181 Alternatives: @) A) Gi). BW, © 9, OO ©) A)-G). BH. ~ Gi. D - Gi (©) (A) Gv), B) ~ Gi), ©) — 6), () -@ @ A-@, B)- Gi, © - Gi, )~ GH) Read the following statements Assertion (A) and Reason (R): Assertion (A) — Green Revolution had mixed effect in India, Reason (R) ~ The increase in prostuctionyaned produetivityvafter Green Revolution was not uniform across all regions. From the given alternatives choose the correct one: Alternatives: (2) Both Assertion (A) and Reason (R) are tre and Reason (R) is the correct explanation of Assertion (A). (©) Bot Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A). (6) Assertion (A) is true but Reason (R) is fase (d) Assertion (A) is false but Reason (R) is true Read the following statements carefully and choose the correct alternative from the followings Statement 1 — The price of food grains declined relative to other items of eonsumptions. Statement 2 A good portion of the rice and wheat produced during the Green Revolution period (available as marketed surplus) was sold by the farmers in the market Alternatives: (@) Both the statements are tue. (©) Boti the statements are false. (€) Statement I is irue and Siaioment 2 is false (@) Statement 2 is true and Statement I is false. 38 Reaul the following statements carefully and choose the correct alternative from the followings fement 1 Demonetbation means siping a cureacy unit of ts tats es legal tender Statement 2 — Old curency notes of 8500 and 21,000 aren longer legal tender. New eureney noes denomination of €500 and 2,000 were launched COMMERCEa. at Alternativ (a) Both the statements are true (b) Both the statements are fal (c) Statement 1 is true and Statement 2 is false (6) Statement 2 ig true and Staternent 1 is false Te policy measure(s) taken to induce the spirit of privatisation during the reform period was/were (a) Contraction in the role of public sector (b) Policy of disinvestment was followed {e) Both (a) and (b) 1) None of the above {AY and Reason (R): independent ofall other BOP transactions is called an autonomous, Read the following statements—Assertion Assertion (A) — A BOP transaction which sansection. Reason (R) — BOP transactions undertaken to cover deficit (or surplus) in autonomous transactions are called accommodating transactions. From the given alternatives choose the correet one: Alternatives: (8) Both Assertion (A) and Reason (R) are tri ahd Reason (Rejis the correct explanation of Assertion (A). (b) Both Assertion (A) and Reason (R) aie true and Reason (R) is not the conect explanation of Assertion (A). () Assertion (A) is true but Reason (1) is false (@) Assertion (A) is false but Reason (R) is true If total deposits created by the commercial banks are €12,000 and CRR is 25%, Calculate the initial deposit. () 25,000 (&) 24,000 fo) 33,000 (@) 22,000 Read the following statements—Assertion (A) and Reason (R): Assertion (A) — The currency is ereated by the RBI and is called “High Powered Money” Reason (R) ~ High Powered Money consists of coins and paper custency. rom the given alternatives choose the correct one: Alternatives: (a) Both Assertion (A) and Reason (R) are tre snd. 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). {c) Assestion (A) is true but Reason (R) is False. (©) Assertion (A) is false but Reason (R) is true Read the following statements—Assertion (A) and Reason (R): Assertion (A) ~ The aztiulture sector faced stagnation, and to some extent, deterioration durin the British rule Reason (R) ~ The agriculture sector suffered from low productivity, ie, ouput per hectare of land under cultivation, throughout the British rule, From the given alternatives choose the correct one: Alternatives: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the cortet explanation of Assertion (A. (b) Both Asserion (A) and Reason (R) are trae and Reason (R) isnot the correct explanation of Assertion (A) {) Assertion (A) is true but Reason (R) is fale (@) Assertion (A) is false but Reason (R) is tue Read the following statements—Assertion (A) and Reason (R): Assertion (A) — Fixed deposits with banks is an example of time deposit. ‘Reason (R) ~ Time deposits are withdrawable only after # fixed period of time or oly after giving 2 notice From the given alternat Alternat (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) ave tue and Reason (R) is aot the corect explanation of Assertion (ACOA MERCE res choose the correct one:(c) Assertion (A) is true but Reason (R) i false (d) Assertion (A) is false but Reason (R) is tue. 42, Financial secior reforms do not include: (a) Allowing private banks to funetion (b) Allowing foreign institutional investment in financial sector (c) Ending the role of RBI completely as a regulator of financial seetor (@) Giving ceriain managerial freedom to publie sector banks 43. Mr, Singh is teaching in class 12. He says about a five year plan which recognised the importance of human capital. For which five year plan, he is talking about? (a) Seventh (b) Thied (©) Bight (a) Sixth 44, Calculate the value of imports when balance of wade is &(-) 400 crores and the value of export is €300 crores. (a) 500 crores (b) £700 croses (©) €100 croses (2) 1000 crores 45, Read the following statements carefully and choose the correct alternative from the following: Statement 1 — Revenue deficit is excessof FE¥EHUE Expenditure over revenue receipts during the given fiscal Statement 2 — Fiscal deficit refers £0 the exeess OF total receipis over total expenditure Alternatives: (a) Both the statements are true. (©) Both the statements are false. (©) Statement | is true and Statement 2 is false, (@) Statement 2 is tue and Statement 1 is false. 46. Read the following statements carefully and choose the correct alternative from the follow: Statement { ~ Government imposes fieavy taxes on alcohol and gives subsidy on LPG gas. Statement 2 ~The government undertakes stich & measure lo ensure economic stability in the county. Alternatives: (a) Both the statements are true (b) Both the statements are false. (©) Statement | is true and Statement 2 is false (4) Statement 2 ig true and Statement 1 is false. 47. Which of the following are the components of balance of payments? 1. Export and import af goods 2. Export and import of services 3. Income receipts and payments to and from abroad 4. One sided transsetion 5, External ban and investments Select the correct answer using the codes given below + (a) 1,2, Sony (b) 1-4. Sonly © 12345 (2.4, S only 48, From the set of statements given in Colurn Tand Column Tl, choose the comet pur of iatements Column Column 1 G)] Satsntence fuming Zaminda system ()| Commercial tring a) | Work force engaged in ctfeent economic activities (©) Occupational structure Gi |ForsetF-consamtion (©) Land tenure system Liv) Cash crop COMMERCE BABA.Alternatives: @) (A) = Gi, & ~6Y. ©)~ G, O)~ © () (A) - (0, B) ~ Git, © ~ Gi, (D) ~ Gr) ©) A) CD, (B)— Gv), © ~ @, ©) Gad) (@) (A) - (0, (8) ~ Gid, (C= (&. (D) = ii) SECTION-C Section ~ C consists of 12 questions. Attempt any 10 questions from 1 ‘questions would be evaluated. Q. 49-Sé are to answered on the basts of the following Case Study: India’s foreign exchange reserves have jumped by $ 100 billion in 10 mouths to a record high ef $534.5 billion, The rise has been led by strong foreign fund inflows recently and decline in import bill due to dip in enue oil prices and trade impact following COVID-19 pandemic, Reduced imports of gold also cut down India’s imaport bill, section, The first attempted 10 49, Import of Petzoloum fiom Iran will be mestionl int (a) Credit side of Capital Account (©) Debit side of Capital Avcount (2) Credit side of Current Account (@) Debit side of Current Account 50, Increase in import duty of gold Will Iead to + (a) Reduction in import of gold (©) Import of god will increase (©) No effect on import of gold (@) Outflow of forvign exchange ‘51, India’s foroign exchange reserves has jumped high. The reason may be: (a) Inflow of foreign exchange (©) Outflow of foreign exch (©) Autonomous payment over autonomous receipt (4) All of these 52. Which of these condi nge sis needed for a finan stitution 19 become a bank? (a) Accepting deposits (byyAdvancing loans (©) Both (a) and (b) (@) Neither (a) nor (b) 53, In case of depreciation of the domestic eurreney, exports ars likely t9 rise. (@) Tue (©) False (©) Both (2) and (0) @) None of these 4. Read the following statements—Assertion (A) and Reason (R): Assertion (A) — In outsourcing, a company hires regular service from external souress. Reason (R) — Globalisation avermpys w establish links in such a way thatthe happenings in India can be influenced by events happening miles away. From the givem alternatives choose the correct ome: Alternatives: (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) ate true and Reason (R) is wot the correct explanation of Asseition (A), (©) Assertion (A) is true but Reason (R) is false (@) Assection (A) is false but Reason (R) is true Q. $5-60, are to be answered on the basis of following Case Study. Finance Minister Nirmala Sitharaman has pegged fiscal deficit for the coming year 2021-22 at 6.8% of GDP and aims to bring it back below the 4.5% mark by 2025-26. The original fiscal deficit target for 2020-21 was 3.5%. However, in eeality, the deficit shot up to a high of 9.3% of GDP due to the double impact of the COVID-19 pandemic — low revenue flows du to the lockdown and negative {economic growth clubbed with high government spending to provide essential relief to vulnerable sections of soci as well as a stimulus package aimed at reviving domestic demand. COMMERCE BABADeficit budget refers to a situation when, (a) Government’s budget expenditure is less than its budget receipts, (b) Government's budget expenditure is more than its budget receipts (©) Government’s budget expenditure is equal to its budget receipts (4) Government’s budget receipts are more than its budget expenditure 56. Fiscal deficit is equal to (a) Toral expenditure ~ Total receipts other than borrowings (b) Capital expenditure ~ Capital receipts (c) Revenue expenditure + Revenue receipss (@) Revenue expenditure + Capital expenditure — Revenue receipts 57. Fiscal deficit is fnanced through: (a) Borrowings (b) Tae revenue receipts (©) Disinvestment (d) All of these If fiscal deficit is 4000 crore and interest payiisi is %500 crore, thon primary deficit is: (a) 4500 crore (b) &3,500 crore 16) 35,000 crore (4) 34,200 crore 59, Read the following statements—Assertion (A) and Reason (R): Assertion (A) ~ Income tex is the main source of reverme of Government of India Reason (R) ~ It is a direct tax as its harden cannot be shifted From the given alternatives choose the correct one: Alternatives: (a) 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). (c) Assertion (A) is true but Reason (R) is false. (d) Aswertion (A) is false but Reason (R) is true 60. Read the following statements—Assertion (A) and Reason (R): Assertion (A) ~ The fiscal deficit in the economy will be zero if there is no provision for borrowing in the budget. Reason (R) ~ Fiscal deficit is equal to total borrowing requirement of the economy, From the given alternatives choose the correct one: Alternatives: (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) (c) Assertion (A) is true but Reason (R) is false. (@) Assertion (A) is false but Reason (R) is true. ANSWERS (Model Test Paper - 4) L@ 2@ 32 40 56) 6a 720 &@ %@) WO U.@) 12% (@) 13) @) 1S) 16. (6) AT (a) 1B (b) 19) 20. (e) 21. (b) 22d) (C) 2 () SLCC) 2H Uc} 27) W (co). (b) 3. (o) 31. (b) 32.(6) 33. (a) Me (a) 35. (36 UC} 37) 3K (C) 3%) 40. (@) AL. (a) 42 (0) 43. (a) 44 (b) 45. (0) 4G Ue} AT (a) AB (a) 49. (A) 50. (a) SG) SR (0) 82) SA) $5.) 86 (9) SG) SR (HY) — 6H) COMMERCE BABA