NAVODAYA VIDYALAYA SAMITI

HALF YEARLY EXAM: 2022 – 23

MARKING SCHEME
ECONOMICS (030) CLASS XII

Q. NO SECTION A – MACRO ECONOMICS MARKS

1 Release 1
2 C 1
3 A 1
4 C OR C 1

5 B 1

6 D OR D 1
7 A
8 A 1
9 B 1
10 B 1
11 (a) As a lender of last resort, it makes short term credit available to them i.e it gives 1+2
financial accommodation(loans) to commercial banks against approved securities.
When commercial banks fail to get financial accommodation from other sources as a
lender of last resort.
(b) Provides centralized clearing and remittance facilities. The central bank holds
reserves of banks to meet any clearing drains due to settlement with other bank. The
claims of one bank against other are conveniently settled by simple transfers from and
to their accounts from these cash reserves.
OR
(a) Definition of SLR, in case of demand:- SLR is increased to control , there will be
contraction of credit, less money flow in he system, purchasing power in the economy
reduces AD falls and excess demand stands corrected
(b) OMO:- in case of excess demand , govt securities are sold by the central bank in
open market. The central bank withdraws additional purchasing power from the
system, there will be contraction of credit, MS reduce, Ad reduce, excess demand
corrected.
Also explain in case of deflationary situation
12 (a) yes 1+1+1

(b) No

(c) Yes
13 Investments by large MNCs in India will ensure greater inflow of foreign exchange in 4
the economy, leading to an increase in the supply of foreign currency. It is a supply
shock that causes a forward shift of supply curve of foreign exchange for the Indian
economy. Consequently exchange rate will fall. Less rupees are to be paid for buying
a unit of foreign currency, leading to appreciation of domestic currency.
OR
(a) Out flow, debit, capital a/c
(b) Outflow, debit, current a/c
(c) Outflow, debit, current a/c
(d) Inflow, credit, capital a/c
14 (a) defend 2+2

(b) Debt trap, foreign dependence, causes inflation, financial Burden for future
generation
15 (a) Rs. 14100 2+2

(b) Rs. 710

16 Show with diagram and explanation 3+3

17 Rs. 1090 3+3

OR

round Change in Change in Change in Change in

s investmen income consumption(0.5 saving
t 0)
1 20 20 10 10
2 10 5 5
3 5 2.5 2.5
4 2.5 1.25 1.25
5 . . .
6 . . .
. . . .
. . . .
. . . .
total - 40 20 20

In this way any example can be taken to explain the mechanism , explanation of table
is also required.

SECTION B (INDIAN ECONOMIC DEVELOPMENT)

18 A 1
19 B 1

20 Strategic sale refers to the sale of 51% or more stake of a PSU to the private sector 1
who bids the highest. Minority sale refers the sale of less than 49% stake of PSU to
private sector

21 Fiscal reforms 1

Or

22 A 1

23 C 1

24 D 1

25 C 1

26 D 1

27 A 1

28 (a) introduction of railways or any other also 1+2

(b) Exporter of primary products and Importer of Finished goods, and monopoly
control of British Rule.

29 predominance of Primary sector, Regional Variation 3

Or

(a) high birth rate and death rate

(b) high IMR

(c) low life expectancy

(d) poor health facilities

any other also

30 defend, 4

(a) competition with foreign economies

(b) outflow of foreign exchange

31 Social welfare achieved, employment level maximized in rural areas, concentration 4

of economic power can be restricted
32 (a) inefficient disinvestment policy 4

(b) unbalanced growth

Any other point also explanation is required

33 (a) refute 6

(b) defend

(c) refute

OR

(a) Yes, explanation required after analyzing of diagram

(b) Yes both will improve , explanation required

34 Yes, as it generates job opportunities, GDP growth, rise in forex reserves but 6
developed countries oppose it as it leads to job loss in their countries.

Or

It was a step towards free market forces>>to revitalise the financial sector>>it made
Indian economy more dynamic towards foreign market changes to accommodate
accordingly>> financial sector were liberalised to make their own decisions and
strategies>>this led to substantial rise in institutional fundings.