Yearly Archives: 2022

In This Post we are  providing  CHAPTER 3 ELECTION AND REPRESENTATION NCERT MOST IMPORTANT QUESTION for Class 11 POLITICAL SCIENCE which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter.

NCERT MOST IMPORTANT QUESTION ON ELECTION AND REPRESENTATION

Question 1.
Explain the merits and demerits of Direct democracy and Indirect democracy.
Answer:
Direct democracy is one form of a democratic form of government in which people participate directly in the process of governance. The people of state sit together in person, discuss the issues and make final decisions about old matters like policymaking, making rules, making appointments, and giving punishment. It has two important merits

No.1. People take part in the discussion and decisions directly.

No. 2. The decisions are taken quickly and no time is wasted.

It has some demerits also which are as under:

1. It is not feasible in bigger states,
2. Common people are not competent to taken technical decisions. Indirect democracy is another form of democracy where people do not participate directly but indirectly i.e. through their representative. The elected representatives act on behalf of the people and take part in the matter of administration.

It has two main merits which are as under.

1. It is possible in big states.
2. Elected people are responsible to the people.

Its demerits are as under.

1. A lot of expenditure has to be incurred on elections
2. Representatives are unable to keep all the interest of the people.

Question 2.
What is the election? What are the requisites of an election?
Answer:
The election is a method of choosing one’s representative. In a representative democracy, the election becomes a necessity because people cannot take part in administration directly. It is an elected representative who works on behalf of the common people. There is a number of requisitions for an election.

These requisites are as under

1. It is to be decided that who will be eligible for vote.
2. There should be free and fair elections for which a competent body has to be constituted to conduct free and fair elections.
3. The basis of constituency formation has to be decided
4. The method of election has to be decided.
5. Election results are decided.

Question 3.
Write main features of the Indian electoral system.
Answer:
Following are the main features of the Indian electoral system:

1. Adult Franchise: Every person above the age of 18years has been given the rights to Vote.
2. Multimember Election Commissioner: Indian Constitution has pro¬vided a multimember (Now three members) Election Commission to conduct free and fair elections.
3. Joint Electorate: Joint electorate is a very important feature of the Indian electoral system. In this system, all the persons irrespective of their caste or occupation, elect their representative jointly.
4. Temporal representation: In India Territorial representation has been adopted which means the country has been divided into territorial constituencies (Now 5.43). Each such Territorial constituency will send one represen¬tative.
5. reservation ensure the adequate representation of each minority social groups some seats have been reserved for Scheduled Castes and Scheduled tribes in Parliament and State Assemblies.
6. Secret ballot papers.
7. First Past the Post system
8. Election Petitions

Question 4.
Describe various steps in the Election Process of India.
Answer:
Following are the stages of the Election process in India:

1. Formation & Electoral Territorial constituencies by the commission.
2. Updating and finalizing the voter’s list
3. Notification of declaration of Elections
4. Nomination of candidates
5. Scrutiny of the forms of candidates
6. Time for withdrawal of the candidature
7. Finalization of the total candidates in the Electron and publication of such a list.
8. Printing of the ballot papers
9. The proportion of EVM (Electronic Voting Machine) or the ballot box.
10. Constitution of Polling booths in different constitutions
11. Constitution of polling parties
12. Preparation of poHingJiags with necessary election material for each polling booth.
13. Conducting of the elections
14. Counting of the votes
15. Declaration of the result.
16. Settlement of Election petitions

Question 5.
Distinguish between FPTP and PR system.
Answer:
FPTP system stands for First Post the post system which means
that candidate, who secures the highest vote among the total candidates in the election is declared elected. It is not necessary for him to get even 50% of the total votes. It means that in the electorate race, the candidate who is ahead of others and who crosses the winning post, first of all, is the winner.

In the PR system i.e the Proportional Representation method, multi-member constituencies are made. It is of two types 1. Single Transferable vote system and No.2. is the list system. In this system, it is ensured that minority social groups are duly represented as per the proportion of their qualifications. Similarly, all political parties are given a number of seats in proportion to the votes they have received in the election.

Question 6.
Discuss the composition of the Election Commission of India.
Answer:
Now Election Commission of India is a three-member body with one Chief Election Commissioner and two other election commissioners. Each election commissioner has equal power and pay. However, Chief Election Commissioner provides the meetings of the commission and discharges the formal duties of the Election Commission. He also acts as spokesman of the commission. Every Election Commissioner enjoys the tenure of six years or up to the attainment of the age of 65 years whichever is earlier.

To assist the Election Commissioner of India there is a chief electoral officer in every state. State Election Commissioner is responsible for conducting the local body elections and is independent of the Election Commission of India. When elections are declared every State and Central Government employee comes under the jurisdiction of’Election Commissioner under the Representation of people’s Act 1951 which makes it obligatory for every employee to perform the election duty assigned to him by the commission.

Question 7.
Write main functions of the Election Commissioner.
Answer:
The Election Commissioner has a wide range of functions which are as under.

1. The election Commissioner supervises the preparation of updated voter’s list in every state.,
2. It also determines the timings of the election and prepares the schedules of the election. lt also notifies the schedule which includes filling up of nomination form, last date of scripting, last date of withdrawals, date of polling, date of counting, and declaration to the result.
3. Its main duty is to conduct free and fair poll:
4. It has the power to implement the model code of elections and it punishes those who try to violate it.
5. It takes the decision regarding repel! in any constituency.
6. The Election Commission accord recognition to political parties and allocates flaps, symbols to the candidates and political parties.
7. Election Commission monitor and supervise the election and takes a decision about any dispute related, with the election. „

Question 8.
Discuss the position of the Election Commission of India.
Answer:
Chief Election Commissioner has a wide range of powers so is its role and position. Once the years the Election Commission of India has emerged as an independent authority and has exercised its powers and authority to ensure free and fair elections.

When Chief Election Commissioners like T.N. Susan, B.B. Lyndog were at the helm of authority it has acquired more and more teeth. It is widely agreed that Election Commission is more independent and assertive now than it was ever. The Election Commission has started using more effectively its powers that it has been given by the Constitution makers. Many political leaders call it judicial activism also but it is not so.

Over the years Election Commission has conducted the election of 14 Lok Sabhas and-many more state assembly elections and bye-elections have been conducted. Election Commission has conducted the elections in the most difficult situations. Generally, its decisions have been accepted and its impartiality has never been questioned. Its authority has been appreciated even in other countries also.

Question 9.
Mention some Election defects in our Election system.
Answer:
In spite of the smooth functionary of our electoral democracy, our electoral system is not free from defects. It has some structural and functional defects which are as under.

1. The multiplicity of the political parties and candidates
2. Rigging in the elections
3. FPTP system is defective because it ensures the win of a candidate even if he or she does not get the majority of the votes.
4. Booth capturing
5. The minority is ruling over the majority
6. Hung Assemblies and hung Parliament
7. Impersonation
8. Use of black money in the elections
9. Crimmalisatiort Or politics.
10. Lack of political training.

Question 10.
Explain Single Transferable Vote System.
Answer:
A single Transferable system is a proportional method of representation. It is used in multi-member constituencies. In this system, every voter can express as many preferences as there are candidates in the election. A person who secures the desired quotas on basis of counting of votes of first preference is declared elected. The formula of getting the quota is as under.

If no person does not get the definite Quota in first counting the remaining votes of other candidates are transferred to the nearest candidate till he gets desired Quota.

In This Post we are  providing  CHAPTER 4 EXECUTIVE NCERT MOST IMPORTANT QUESTION for Class 11 POLITICAL SCIENCE which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter.

NCERT MOST IMPORTANT QUESTION ON EXECUTIVE

Question 1.
What do you understand by the dominance of executive leadership?
Answer:
In the parliamentary system, the legislature is formed mainly by the elected representatives because the political party who gets the majority, the leader of that party is called upon by the President to form the government. The parliament enjoys many powers even to pass no confidence motion against the Prime Minister and his Council as well as to remove them from their office. But in fact, the Prime Minister leads the parliament whenever he wants, can dissolve the Lok Sabha. Hence, it is considered as dominance of executive leadership.

Question 2.
Write a short note on the relationship between the President and the Prime Minister.
Answer:

• According to the constitution, the appointment of the Prime Minister is made by the President who calls upon to the leader of majority party to form the government.
• The President is the constitutional head while the Prime Minister is the real head of the state.
• The Prime Minster serves as a link between the President and the Council of Ministers.

Question 3.
How is the President of India elected?
Answer:
The President of India is elected by the electoral college which consists of:

• Elected members of both the houses of parliament.
• Elected members of the Legislative Assemblies of the states.
• The elected members of the Legislative Assemblies of Delhi and Pondicherry have been authorized to be the part of Electoral College by 70th Amendment of 1992.
• The President should fulfill all the qualifications also as assigned by the constitution of India.

Question 4.
Distinguish between the Political executive and the Permanent executive.
Answer:

• Political executives are elected by the people through the process of elections where permanent executives are appointed by the Government of India on the basis of merits.
• The tenure of Political executives depends on the popular election in order to formulate policy and give direction to administration as long as they command the support of the electorates whereas the civil servants continue in service till they reach the age of superannuation.
• Political executives keep on changing after some duration but the permanent executives are there to cooperate with whichever leader comes in power by maintaining political neutrality in the discharge of their official duties.

Question 5.
Mention the situations to when a Governor can use his discretionary powers.
Answer:

• If any party does not get the absolute majority or the winning is unable to choose its leader, the Governor can appoint chief minister of his own choice.
• If constitutional machinery fails in the state, the Governor immediately sends the report to the President and he is not bound to consult with the council of ministers under such circumstances, he can work independently.
• If the President declares emergency in the state, the Governor acts as an agent to the president in place to act in accordance with the advice of council of ministers.
• If the Governor feels some bills to be contradictory to the Central Government, he can reserve this bill for the approval of the President.

Question 6.
In what circumstances, the President’s rule is imposed in a state? What role does the Governor play during this?
Answer:
Under the following circumstances. President’s rule is imposed in a state:

• If no political party gets the majority and formation of government in the state becomes quiet impossible then on the advice of the Governor, President’s rule is imposed.
• If the President gets information of failing of constitutional machinery in the state. Role of Governor: When a President’s rule is imposed, the legislative assembly is dissolved and all the powers of government come into the hands of the Governor who works as an agent to the President of India and the legislative powers of the state go into the hands of parliament.

Question 7.
What are the Emergency powers of the President of India?
Answer:
The President of India can declare emergency mainly in the following cases:

• If the President feels the internal disturbances in the country, external aggression due to war, an emergency can be proclaimed by the President when parliament has the authority to form laws and fundamental rights of the citizens are also suspended.
• If a constitutional machinery fails in any of the state and the state legislative assembly is dissolved and all the legislative powers of state go into the hands of the parliament.
• The President can declare a financial emergency also and may decrease the pay and allowances of government employees.

Question 8.
Write a short note on single and plural executive.
Answer:
Single Executive: Refers to a person who does not share powers with others as in USA. In the UK and other parliamentary form of governments, the executive authority is vested in the cabinet, a plural body but in fact constituting a singular executive. The British cabinet acts as a unit and goes out of the office together. It functions under the leadership of Prime Minister.
Plural Executive: Refers to directing authority by one single individual for a term but a group of persons have co-equal authority as the Swiss federal council consisting of seven Councillors and the chairman of the council is selected only for a term of one year and is merely the first among equals.

Question 9.
Describe the powers and functions of the President of India.
Answer:
The powers of the President can be summarised as follows:
Executive Powers:

• The President appoints the Prime Minister who is the leader of the majority party and the other members also on the advice of the Prime Minister.
• The President appoints the high officials in India, i.e. Governors of the state, Lt. Governors of Union Territories, Attorney General, Controller and Auditor General, the Chairman and the members of UPSC, the Ambassadors or High Commissioners in other countries.
• The President of India is the supreme commander of the Defense forces. The President can declare war and make peace.

2. Legislative Powers:

• The President nominates 12 persons to the Rajya Sabha who are distinguished in the fields of art, literature, science and social service, as well as he can nominate two Anglo-Indian members to the Lok Sabha also.
• The President can summon both the houses, if there are some differences on any bill issued by the parliament, the joint session might be summoned.
• The President has the power to dissolve the Lok Sabha before completion of its term and can order for fresh elections, but on the recommendation of the Prime Minister.
• The President has the power to give his assent to the bill, because no bill passed by the Parliament can become an Act without the assent of the President. He has no power to reject the Money Bill passed by the Parliament.
• The President has the power to issue the ordinances during the intervals of the sessions of parliament which have the force of laws.

3. Financial Powers:

• The President has the duty to place the budget before the beginning of financial year by the finance minister on behalf of the President.
• Money bills can be introduced only in the Parliament on the recommendation of the President.
• The President has a full control over the contingency fund to spend it according to his will even prior to the consent of the Parliament.
• The President has the power to distribute the share of income-tax among the states.

4. Judicial Powers:

• The President has the power to appoint the judges of the Supreme Court and the High Courts.
• The President of India has the power to pardon, reprieve or commute the punishment of any criminal for whom he thinks to deserve pardon.

Question 10.
Describe the powers and functions of the Prime Minister of India.
Answer:

• The Prime Minister forms the Council of Ministers according to the capability of the ministers, he assigns duty to them.
• The Prime Minister allocates the department to the ministers and if he does not find the working satisfactory, can change the departments of the ministers.
• The Prime Minister presides over the meetings of cabinet, he prepares an agenda for meetings and controls it.
• The Prime Minister makes the appointments of state Governors, Ambassadors, members of UPSC by giving the advice to the President to appoint the same.
• The Prime Minister works as a link between the President and the Council of Ministers. No minister can discuss the issues directly with the President without the permission of the Prime Minister.
• The Prime Minister leads the cabinet in the Parliament as he explains the policy and decisions of the cabinet to parliament and if the President requires any information regarding the functioning of Parliament, he would demand such information from the Prime Minister only.

In This Post we are  providing  CHAPTER 5 LEGISLATURE NCERT MOST IMPORTANT QUESTION for Class 11 POLITICAL SCIENCE which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter.

NCERT MOST IMPORTANT QUESTION ON LEGISLATURE

Question 1.
What is the main function of the Legislature in the modern state?
Answer:
Legislatures of modem state perform the following functions whatever may be the forms of government:

1. Discussion, debate, and deliberations on public issues.
2. Legislative function:- Enactment of law is the primary function of legislation.
3. Financial functions:- Legislatures control the expenditure. The executive cannot spend even a single penny without the approval of the Legislature.
4. Executive functions:- Executive is controlled by the legislature by different methods.
5. Constitutional amendment functions
6. Judicial functions.
7. Electoral functions
8. Emergency powers.
9. Miscellaneous functions

Question 2.
Discuss the compositions of Lok Sabha and Rajya Sabha.
Answer:
Lok Sabha and Rajya Sabha are two houses of the Indian Parliament. Lok Sabha is the Lower house and Rajya Sabha is the upper house. Lok Sabha has a maximum capacity of 550 members which are elected by the people by direct elections. A person of a minimum of 25 years of age can be a member of the Lok Sabha. Every person 18 years of age is eligible to cast his vote in this election.

Rajya Sabha is a permanent house and cannot be dissolved Every member enjoys the tenure of 6 years. Its one-third of members are retired after every second year and new members are elected by the respective state assembly by a single transferable vote system.

Its total strength is 250 members out of where 238 members are elected and the rest 12 members are nominated by the President of India. To become a member of the Rajya Sabha one should be a member of a minimum of 30 years of age. Vice President of India acts as ex-officio Chairman Parliament of Rajya Sabha and conducts its meetings.

Question 3.
What are the main functions of the Lok Sabha speaker?
Answer:
The speaker of Lok Sabha performs the following functions:

1. To preside over the meetings of Lok Sabha.
2. To maintain discipline and decorum in the house
3. To allow the introductions of the bill in the house.
4. To decide the nature of the bill
5. To interpret the rules of the house
6. To constitute different committees.
7. To safeguard the privilege of the member of the parliament and house itself.
8. To refer the bills to different committees.
9. To conduct the business of the house and decide the term of the speakers.
10. To exercise the casting vote in case of a tie on a bill.

Question 4.
How the parliament exercises control over the executive?
Answer:
The Parliament exercises administrative and financial control as the executive in the following ways:

1. It discusses, debate and make a public opinion on different policy matters of the executive.
2. It molds the decisions of the government.
3. It controls the arbitrariness of the government.
4. Executive can not make any expedition without the approval of the Parliament
5. The executive has to give the report of expenditure before the Parliament.

Question 5.
Write main functions of Parliament.
Answer:
Parliament performs the following functions:-

1. It discusses the issues of public importance
2. It makes laws.
3. It discusses, approves, and passes the budget.
4. It exercises control on the executive.
5. Parliament members take part in the election of President and Vice-President.
6. Parliament makes amendments in the Constitution.
7. Parliament brings and listens and passes the improvement against the President, Vice-Present, and judges of Supreme court and High Courts.
8. Parliament approves the decision of declaration of emergency.

Question 6.
Tell the areas in which Rajya Sabha has equal powers.
Answer:
Rajya Sabha enjoys equal powers with Lok Sabha in the following areas:

1. In discussion and debate on the issues of public interest and to help in making a public opinion.
2. In the area of a constitutional amendment, Lok Sabha and Rajya Sabha have equal power. No amendment bill will become Act until and unless it is passed by both houses separately. Amendment bill can be introduced in either house of Parliament.
3. In judicial matters also Lok sabha and Rajya sabha have equal powers as Lok Sabha and Rajya Sabha can initiate impeachment proceedings against the President, Vice President, and judges of the Supreme court and High court.
4.  Rajya Sabha has also emergency powers which it shares with Lok Sabha.

Question 7.
Write the various steps in the Lawmaking process.
Answer:
Followings are various stages in the law-making process:

1. Preparation of the bills
2. Introduction of the bill in either House (First reading)
3. Second Reading
4. Committee stage
5. Report stage
6. Introduction of the bill in the second house.
7. President’s assent.

Question 8.
Name the states which have a bicameral legislature and how bicameral legislature can be introduced.
Answer:
The following five states have bicameral legislature:

1. Uttar Pradesh
2. Bihar
3. Jammu & Kashmir
4. Maharashtra.
5. Karnataka

The Upper house in a state can be withdrawn or introduced at the request of the concerned state by constitutional amendment

Question 9.
Differentiate between
1. Government bilk and Private member bill
2. Ordinary bill and a money bill
3. Private bill and ordinary bill
Answer:

1. Government billAll the bills; which are introduced by the ministers are called Government bill while bills which are introduced by ordinal members are called private member bill.
2. Ordinary bills and money billAll the bills which are dealing with income and expenditure are called money bills and all other rum-money bills are called ordinary bills.
3. Private bill and an ordinary bill:-The bill that is related to a particular area, person a group is a private bill, and a bill that is related to the common general public is known as the General bill.

Question 10.
Discuss the powers and decline of the Indian Parliament.
Answer:
We have supremacy of the Constitution. Indian Parliament is the product of the constitution. It is the most powerful institution. Due to the Parliamentary system of Government, the power and prestige of the Parliament are further increased. Parliament is the representative of the people. It performs deliberative functions and makes a public opinion by enlightening discussion and debate. Parliament is called the soul of the people.

Parliament exercises control on the executive by a number of methods which are as under

1. Deliberations and discussion on the policies of the Government
2. Approval on the refusal of Laws.
3. Financial control on the executive
4. No-confidence motion against the Government

The executive is responsible to Parliament for every omission and commission. They are accountable to the people through the Parliament. The government cannot make any expenditure without the approval of Parliament. Parliament can remove even the President, Vice President, and judges from their offices by means of impeachment. The executive is the order of declaration of Emergency cannot last long without the approval of the Indian Parliament within a specific period.

Over the years the powers and prestige of Parliament are on the decline. The sitings of the Parliament are reduced. The atmosphere of the Parliament is polluted by ugly sums. Allegations and counter-allegations are exchanged. Due to the criminalization of politics, people of criminal backgrounds have entered Parliament. The commercialization of politics has also polluted the atmosphere of Parliament.

Due to frequent disturbances, a lot of valuable time of parliament is wasted for which people have to pay. The seriousness of the business of the house also is on the decline. There is no doubt that houses of the parliament have been plagued by the absence of a quorum, a boycott of sessions by members of opposition which deprive the house to control the executive through discussion.

In This Post we are  providing  CHAPTER 6 JUDICIARY NCERT MOST IMPORTANT QUESTION for Class 11 POLITICAL SCIENCE which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter.

NCERT MOST IMPORTANT QUESTION ON JUDICIARY

Question 1.
Write down the composition of the Supreme Court of India.
Answer .

• Supreme Court of India consists of a Chief Justice and 25 other judges.
• The judges of the Supreme Court are appointed by the President in the consultation with such judge to whom he feels appropriate for the same?
• In appointing other judges, the President will consult with the Chief Justice of India.
• A judge of Supreme Court holds office till the age of 65 years.

Question 2.
How can a judge of Supreme Court be removed from his office?
Answer:
A judge of the Supreme Court can be removed from his office before his term expires on the ground of incapacity or misbehavior if Parliament approves it by a majority of two-third members of the Parliament (Both the houses) present and voting. Finally, the President exercises the right to remove a judge if impeachment is proved.

Question 3.
What is the original jurisdiction of the Supreme Court?
Answer:
The Supreme Court enjoys the original jurisdiction in the following:

• A case where jurisdiction can be initiated at first instance.
• Between the union of India and any state or states and one or more states on the either side.
• Between the union and one or more states.
• Between two or more states.

Question 4.
What is the composition of a high court in a state?
Answer:

• The number of judges in the high court is not fixed. It is fixed by the President only.
• Every high court has a Chief Justice and other judges to be fixed by the President.
• On the appointment of Chief Justice, the President consults the Chief Justice of India and the Governor of the state concerned.
• While other members’ appointment is consulted with the Governor of state and Chief Justice of high court.

Question 5.
Give some suggestions to ensure speedy and inexpensive justice in India.
Answer:

• The instruments of judicial activism should be availed, i.e. Public Interest Litigation which has expanded the idea of rights and duties even to those, who cannot approach the courts easily.
• The pendency of cases should be expediated and decided at the earliest possible.
• Some new courts should be established as well as the fees of courts and advocates should be controlled upto minimum extent.
• Lok Adalats should be established more and these should be publicised also, so that maximum people could get justice in a speedy manner.

Question 6.
What is the jurisdiction of the high courts?
Answer:

• The high courts are empowered to issue orders, directions and writs for the enforcement of fundamental rights and for any other purpose also.
• The high courts of Mumbai, Chennai and Kolkata exercises original jurisdiction as they had before the enforcement of the new constitution on the cases involving hearing of Christians Parsis.
• The above-mentioned high courts also exercise the original jurisdiction when the amount involved is more than ? 2,000 and in criminal cases, it extends to cases committed to them by presidency Magistrates.
• The jurisdiction of the high courts also extends to the matters of administration, matrimonial, contempt of court and cases transferred from a lower court.

Question 7.
What are Lok Adalats? Explain.
Answer:

• Lok Adalats resolve disputes on the basis of discussion, counselling to provide speedy and Chief Justice alongwith the mutual and free consultation of the parties concerned.
• Lok Adalats reduce time and expenditure also.
• These were established to eliminate delay in imparting justice and to speed up clearance of pending cases earliest possible.
• In 1985, in Delhi, the first Lok Adalat was held and 150 cases were decided within a single day.

Question 8.
What is Public Interest Litigation? Explain.
Answer:

• The Public Interest Litigation was initiated by some judges of the Supreme Court.
• PIL can register a complaint through an application or mentioned on postcartd.
• PIL has been used to provide reliefs for undertrial prisoners in jails, acquisitions of cycle, rickshaws by licensed rickshaw pullers, prohibition of human trafficking, etc.
• Due importance is given to the weaker sections, bonded labour, women and children.
• The PIL acquired new dimensions under the leadership of former Chief Justice P.N. Bhagwati.

Question 9.
What is the importance of judiciary in a democratic country like India?
Answer:
Judiciary plays an important role in imparting justice to people due to complex nature of society. Hence, it performs the following functions:

• The judiciary acts as a custodian of the constitution by interpreting it in a proper manner as it can declare any law passed by legislature ultra vires and unconstitutional if it is against the spirit of constitution.
• The judiciary performs the legislative functions by way of giving judge made laws to fill up the gap between the legislature and society.
• The judiciary performs some administrative functions by keeping a check on the smooth functioning of each court.
• The judiciary advice’s the head of the state on the validity of particular law so that it can not be declared unconstitutional after it is passed.
• It is the duty of the judiciary to see whether the people could enjoy their fundamental rights without any contradiction.
• The judiciary look after minors, issues licenses, grant probates, bails and administer oath of office, etc.

Question 10.
Mention those factors which ensure the independence of the judiciary in India.
Answer:

• Judges of Supreme Court and high court are appointed by the President of India on the consultation of Chief Justice and governor of the state in the case of high court. Hence, appointment of judges make it independent, free from any pressure of political parties.
• The judges of India are supposed to be highly qualified because a highly qualified person can judge the cases in an independent manner as’ well as they are expertise of law on the basis of experience of five or ten years as an advocate.
• The method to remove judges in India, is very difficult because no judge can be removed from the post before he attains the age of retirement.
• A judge enjoys a fixed tenure of his service till the age of retirement and avails more experience and delivers justice on honest and sincere basis.
• To make judges impartial they are provided with the handsome salaries so that they could not accept bribe or run after money.

NCERT MCQ ON Foreign Exchange Rate:

Question 1:  The exchange rate at which demand for foreign currency becomes equal to its supply called

• a) Equal rate of exchange
• b) Unequal rate of exchange 
• c) Equilibrium rate
• d) All of these

Answer :  Equilibrium rate

Question2 :  According to adjustable peg system (or Bretton Woods System ) of Exchange Rate :

• a) Different currencies were pegged to one currency (US dollar)
• b) US dollar was assigned gold value at a fixed price
• c) Parity between two currencies was determined by the quantity of gold contained in them
• d) All of these

Answer :  All of these

Question 3:  What is the relationship between demand for foreign exchange and exchange rate ?

• a) Inverse          
• b) Direct
• c) One to one
• d) No to relationship

Answer :  Inverse          

Question 4:  What is the relationship between supply of foreign exchange and exchange rate?

• a) Inverse     
• b) Direct
• c) One to one
• d) No to relationship

Answer :  Direct

Question5 :  Spot market is that market where in :

• a) Only spot or current transactions are handled
• b) Foreign exchange transactions are meant for future delivery
• c) Exchange rate is determined instantly
• d) Both (a) and (c)

Answer :  Both (a) and (c)

Question6 :  Forward market is that market which :

• a) Handled transactions of foreign exchange meant for future delivery
• b) Handled current transactions
• c) Handled current as well as future transactions
• d) None of these

Answer :  Handled transactions of foreign exchange meant for future delivery

Question 7:  If Rs. 150 ate required to buy $ 2, instead of Rs.100 earlier, then :

• a) Domestic currency has depreciated 
• b) Domestic currency has appreciated
• c) Rupee value of import bill will increase 
• d) Both (a) and (c)

Answer :  Both (a) and (c)

Question8 :  BoP is measured as :

• a) Difference between visible items of exports and imports
• b) Difference between invisible items of exports and imports
• c) Difference between external and internal flow of gold
• d) Difference between all receipts of foreign exchange and payments of foreign exchange

Answer :  Difference between all receipts of foreign exchange and payments of foreign exchange

Question 9:  Balance of trade is measured as : 

• a) Difference between import and export goods
• b) Difference between import and export services
• c) Difference between import and export of capital
• d) Difference between all export and all imports

Answer :  Difference between import and export goods

Question 10:  In which of the following categories are economic transactions of balance of trade recorded ?

• a) Visible items 
• b) Invisible items
• c) Capital transfers 
• d) All the above

Answer :  Visible items 

Question 11:  Which of the following transactions are recorded in the current account of the balance of payments ?

• a) Import and export of goods and services  
• b) Transfers from one country to the other
• c) Both (a) and (b) 
• d) None of these

Answer :  Both (a) and (b) 

Question12 :  Which of the following items relate to BoP which :

• a) Foreign investment 
• b) Loans
• c) NRI remittance
• d) All of these

Answer :  All of these

Question 13:  Autonomous items are related to those transactions which :

• a) Are determined by motive of profit 
• b) Are not concerned with the equilibrium status of BoP
• c) Both (a) and (b)
• d) None of these

Answer :  Both (a) and (b)

Question 14:  Accommodating items are those items of Bop which :

• a) Are not determined by profit motive 
• b) Are conditioned by the positive or negative BoP status
• c) Deal with capital transfers only
• d) Both (a) and (b)

Answer :  Both (a) and (b)

Question 15: Disequilibrium in balance of payments means:

• a) Surplus balance of payments 
• b) Deficit balance of payments
• c) Both (a) and (b) 
• d) None of these

Answer :  Both (a) and (b) 

Question 16:  If balance of trade is (-) Rs.600 crore and value of exports is rs.500 crore then the value of imports will be :

• a) Rs.1,300 crore  
• b) Rs. 300 crore
• c) Rs.1,100 crore 
• d) Rs. 1,200 crore

Answer :  Rs.1,100 crore 

 

NCERT MCQ ON Government Budget and the Economy:

Question1:  In the context of government budget, which of the following statements is correct ?

• a) Budget is a statement of expected annual receipts and expenditure is correct?
• b) It is a detail of actual receipts and expenditures of the government in a financial year
• c) It offers a detailed description of achievements of the government during the 5 year plans
• d) It indicates  BoP status of the economy
  Answer :  Budget is a statement of expected annual receipts and expenditure is correct?

Question2 :  Which of the following are the objectives of government budget ?

• a) Redistribution of income and wealth
• b) Economy stability 
• c) Both (a) and (b) 
• d) None of these
  Answer :  Both (a) and (b) 

Question3 :  Which of the following is a non- tax receipt ?

• a) Gift tax
• b) Sales tax 
• c) Gift and grants         
• d) Excise duty
  Answer :  Gift and grants         

Question4 :  Regressive tax is that which is :

• a) Charged at an increasing rate when income of the individual increases 
• b) Charged at a decreasing rate when income of the individual increases
• c) Relatively a low percentage of an individual’s income
• d) A fixed percentage of an individual’s income
  Answer :  Charged at a decreasing rate when income of the individual increases

Question5 :  Which one of the following is indirect tax ?

• a) Wealth tax
• b) Excise duty
• c) Income tax 
• d) None of these
  Answer :  Excise duty

Question6 :  Which of the following are capital receipts of the government ?

• a) Recovery of loans
• b) Borrowings
• c) Disinvestment 
• d) All of these
  Answer :  All of these

Question7 :  Capital expenditure is that estimated expenditure of the government which?

• a) Assets are increased 
• b) liability is decreased 
• c) Both (a) and (b) 
• d) Assets and liabilities do not change
  Answer :  Both (a) and (b) 

Question8 :  Deficit budget refers to that situation in which government’s budget expenditure is :

• a) less than its budget receipts 
• b) More than its budget receipts 
• c) Equal to its budget receipts 
• d) None of these
• Answer :  More than its budget receipts 

Question9 :  Fiscal deficit=

• a) Total expenditure – total receipt other than borrowing
• b) Revenue expenditure- revenue receipts
• c) Capital expenditure – capital receipts
• d) Revenue expenditure + Capital expenditure – revenue receipts
  Answer :  Total expenditure – total receipt other than borrowing

Question 10:  Surplus budget is that budget where in :

• a) Estimated revenue of the government < estimated expenditure of the government
• b) Estimated revenue of the government > estimated expenditure of the government
• c) Estimated revenue of the government = estimated expenditure of the government
• d) None of these
  Answer :   Estimated revenue of the government > estimated expenditure of the government

Question 11: Which of the following is the capital expenditure of the government?
(a) Interest Payment
(b) Purchase of House
(c) Expenses on Machinery
(d) All of the above
Answer: (a) Interest Payment

Question12 : When government spends more than it collects by way of revenue, it incurs ______
(A) Budget surplus
(B) Budget deficit
(C) Capital expenditure
(D) Revenue expenditure
Answer: (B) Budget deficit

Question13 : Which of the following statement is true?
(a) Fiscal deficit is the difference between total expenditure and total receipts
(b) Primary deficit is the difference between total receipt and interest payments
(c) Fiscal deficit is the sum of primary deficit and interest payment
(d) All of these
Answer: (c) Fiscal deficit is the sum of primary deficit and interest payment

Question14 : Which is included in the Direct Tax?
(a) Income Tax
(b) Gift Tax
(c) Both (a) and (b)
(d) Excise Duty
Answer: (c) Both (a) and (b)

Question15 : The fiscal deficit is the difference between the government’s total expenditure and its total receipts excluding ______
(A) Interest
(B) Taxes
(C) Spending
(D) Borrowings
Answer: (D) Borrowings

Question 16: Which is included in Indirect Tax?
(a) Excise Duty
(b) Sales Tax
(c) Both (a) and (b)
(d) Wealth Tax
Answer: (c) Both (a) and (b)

Question17 : What is the annual statement of the government’s fiscal revenue and fiscal expenditure known?
(A) Budget
(B) Fiscal Budget
(C) Capital Budget
(D) All of these
Answer: (B) Fiscal Budget

Questio18 : An annual statement of the estimated receipts and expenditure of the government over the fiscal year is known as
(A) Budget
(B) Income estimates
(C) Account
(D) Expenditure
Answer: (A) Budget

Question 19: How many types of revenue receipts are there?
(A) 2
(B) 3
(C) 4
(D) 6
Answer: (A) 2

Question20 : Who issues 1 rupee note in India:
(a) Reserve Bank of India
(b) Finance Ministry of India
(c) State Bank of India
(d) None of these
Answer: (b) Finance Ministry of India

Question 21: The amount collected by the government as taxes and duties is known as _______
(A) Capital receipts
(B) Tax revenue receipts
(C) Non-tax revenue receipts
(D) All of these
Answer: (B) Tax revenue receipts

Question22 : Which is included in indirect tax?
(a) Income tax
(b) Wealth tax
(c) Excise Duty
(d) Gift tax
Answer: (c) Excise Duty

Question23 : The amount collected by the government in the form of interest, fees, and dividends is known as…….
(A) Tax-revenue receipts
(B) Capital receipts
(C) Non-tax revenue receipts
(D) None of these
Answer: (C) Non-tax revenue receipts

Question24 : Direct tax is called direct because it is collected directly from:
(A) The producers on goods produced
(B) The sellers on goods sold
(C) The buyers of goods
(D) The income earners
Answer: (D) The income earners

Question25 : Which objectives government attempts to obtain by Budget
(a) To Promote Economic Development
(b) Balanced Regional Development
(c) Redistribution of Income and Wealth
(d) All the above
Answer: (d) All the above

Question26 : Which of the following is an example of direct tax?
(A) VAT
(B) Excise duty
(C) Entertainment tax
(D) Wealth tax
Answer: (D) Wealth tax

Question27 : Which is a component of the Budget Receipt?
(a) Revenue Receipt
(b) Capital Receipt
(c) Both (a) and (b)
(d) None of the above
Answer: (c) Both (a) and (b)

Question28 : Which of the following is the component of a budget?
(A) Fiscal budget
(B) Capital budget
(C) Both of these
(D) None of these
Answer: (C) Both of these

Question29 : Tax revenue of the Government includes :
(a) Income Tax
(b) Corporate Tax
(c) Excise Duty
(d) All of these
Answer: (d) All of these

Question30 : Budget speech in Lok Sabha is given by:
(a) President
(b) Prime Minister
(c) Finance Minister
(d) Home Minister
Answer: (c) Finance Minister

Question31 : The expenditures which do not create assets for the government is called :
(a) Revenue Expenditure
(b) Capital Expenditure
(c) Both (a) and (b)
(d) None of the above
Answer: (a) Revenue Expenditure

Question32 : What is the period of a fiscal year?
(A) 1 April to 31 March
(B) 1 January to 31 December
(C) 1 March to 28 February
(D) None of these
Answer: (A) 1 April to 31 March

Question 33: Direct tax is :
(a) Income Tax
(b) Gift Tax
(c) Both (a) and (b)
(d) None of these
Answer: (c) Both (a) and (b)

Question34 : Which of the following is not a revenue receipt?
(a) Recovery of Loans
(b) Foreign Grants
(c) Profits of Public Enterprise
(d) Wealth Tax
Answer: (a) Recovery of Loans

Question35 : From the following which is included in the direct tax:
(a) Income Tax
(b) Gift Tax
(c) Both (a) and (b)
(d) Excise Tax
Answer: (c) Both (a) and (b)

Question36 : In India, one rupee note is issued by:
(a) Reserve Bank of India
(b) Finance Ministry of Government of India
(c) State Bank of India
(d) None of these
Answer: (b) Finance Ministry of Government of India

Question 37: The non-tax revenue in the following is:
(A) Export duty
(B) Import duty
(C) Dividends
(D) Excise
Answer: (C) Dividends

Question 38: Capital budget consist of:
(a) Revenue Receipts and Revenue Expenditure
(b) Capital Receipts and Capital Expenditure
(c) Direct and Indirect Tax
(d) None of these
Answer: (b) Capital Receipts and Capital Expenditure

Question 39: Financial Year in India is:
(a) April I to March 31
(b) January 1 to December 31
(c) October 1 to September 30
(d) None of the above
Answer: (a) April I to March 31

Question40 : Which of the following is an indirect tax?
(a) Excise Duty
(b) Sales Tax
(c) Custom Duty
(d) All of these
Answer: (d) All of these

Question41 : Borrowing in the government budget is:
(A) Revenue deficit
(B) Fiscal deficit
(C) Primary deficit
(D) Deficit in taxes
Answer: (B) Fiscal deficit

Question42 : What is the duration of a Budget?
(a) Annual
(b) Two Years
(c) Five Years
(d) Ten Years
Answer: (a) Annual

Question43 : Which of the following is included in fiscal policy?
(a) Public Expenditure
(b) Tax
(c) Public Debt
(d) All of these
Answer: (d) All of these

Question44 : The budget may include:
(a) Revenue Deficit
(b) Fiscal Deficit
(c) Primary Deficit
(d) All of these
Answer: (d) All of these

Question 45: Budget:
(a) is a description of income-expenditure of government
(b) is a document of the economic policy of the government
(c) is a description of non-programs of the government
(d) All of these
Answer: (d) All of these

Question 46: In an unbalanced budget:
(a) Income is greater than expenditure
(b) Expenditure is higher relative to income
(c) Deficit is covered by loans or printing of notes
(d) Only (b) and (c)
Answer: (d) Only (b) and (c)

Question 47: Which one of the following is a pair of direct tax?
(a) Excise duty and Wealth Tax
(b) Service Tax and Income Tax
(c) Excise Duty and Service Tax
(d) Wealth Tax and Income Tax
Answer: (d) Wealth Tax and Income Tax

Question48 : Which of the following is a correct measure of the primary deficit?
(a) Fiscal deficit minus revenue deficit
(b) Revenue deficit minus interest payments
(c) Fiscal deficit minus interest payments
(d) Capital expenditure minus revenue expenditure
Answer: (c) Fiscal deficit minus interest payments

Question49 : The primary deficit in a government budget will be zero, when _______
(A) Revenue deficit is zero
(B) Net interest payments are zero
(C) Fiscal deficit is zero
(D) Fiscal deficit is equal to interest payment
Answer: (D) Fiscal deficit is equal to interest payment

Question50 : The duration of the Government budget is:
(a) 5 years
(b) 2 years
(c) 1 year
(d) 10 years
Answer: (c) 1 year

Question 51: Budget is presented in the Parliament by:
(a) Prime Minister
(b) Home Minister
(c) Finance Minister
(d) Defence Minister
Answer: (c) Finance Minister

Question 52: Which of the following budget is suitable for developing economies?
(a) Deficit Budget
(b) Balanced Budget
(c) Surplus Budget
(d) None of these
Answer: (a) Deficit Budget

Question 53: Professional tax is imposed by:
(a) Central Government
(b) State Government
(c) Municipal Corporation
(d) Gram Panchayat
Answer: (b) State Government

Question54 : Which type of expenditure is made in bridge construction?
(a) Capital Expenditure
(b) Revenue Expenditure
(c) Both (a) and (b)
(d) None of the above

NCERT MCQ ON National Income Determination and Multiplier:

Question1 :  Which of the following indicates AD in an open economy?

• a) Private (household) Consumption Expenditure
• b) Household Investment Expenditure
• c) Government expenditure + private consumption expenditure
• d) Household consumption expenditure+ investment expenditure + government expenditure + net exports

Answer :  Household consumption expenditure+ investment expenditure + government expenditure + net exports

Question2 :  Consumption function is a functional relationship between:

• a) Income and saving
• b) Price and consumption
• c) Income and consumption
• d) Income, consumption and saving

Answer :  Income and consumption

Question3 :  Propensity to consume means:

• a) Tendency of the consumer  towards higher consumption
• b) Ratio of consumption to income
• c) Level of income at which consumption expenditure is equal to income
• d) Additional income to be spent on consumption

Answer :  Ratio of consumption to income

Question 4:  Average propensity to consume (APC) equal to :

• a)
• b)
• c)
• d)

Answer :

Question 5:  MPC being equal to 0.5, what will be , if income increases by Rs.100?

• a) Rs. 60
• b) Rs. 50
• c) Rs. 40
• d) Rs. 70

Answer :  Rs. 50

Question 6:  Propensity to save means:

• a) Ratio of saving to income
• b) level of income at which saving is equal to income
• c) Additional income that is not to be saved
• d) None of these

Answer :  Ratio of saving to income

Question7 :  If MPS is 0.6,what will be ∆S when income increases by Rs.100 ? 

• a) Rs. 60
• b) Rs. 50
• c) Rs. 40
• d) Rs.70

Answer :  Rs. 60

Question 8:  Average propensity (APS) is equal to:

• a)
• b)
• c)
• d)

Answer :

Question 9:  Which of the following is correct ?

• a) MPC÷MPS=1         
• b) 1-MPC=MPS
• c) 1-MPS= MPC
• d) All of these

Answer :  All of these

Question10 :  If MPC is 40 per cent, MPS will be

• a) 70 percent
• b) 60 percent
• c) 50 percent
• d) 40 percent

Answer :  60 percent

Question 11:  Since As= C+S and AD=C+I the equilibrium will be established where C+S= C+I, or where:

• a) S=I     
• b) S>I
• c) S<I 
• d) All the above

Answer :  S=I     

Question12 :  Equilibrium level of income/ output and employment is viewed from which of the following approaches ?

• a) AS=AD approach
• b) S=I approach
• c) Both (a) and (b) 
• d) None of these

Answer :  Both (a) and (b) 

Question13 :  On account of injections and withdrawals, equilibrium level of income undergoes :

• a) A shift
• b) No shift
• c) A dispersal 
• d) No change

Answer :  A shift

Question 14:  According to Keynes, equality (equilibrium) between AD and AS can take place in a situation

• a) Less than full employment
• b) Full employment
• c) Beyond full employment  
• d) All of these

Answer :  All of these

Question 15:  If MPC = 0.9, than value of multiplier will be:

• a) 6        
• b) 9
• c) 10
• d) 12

Answer :  10

Question16 :  Multiplier=

• a) ∆Y/∆S
• b) ∆Y/∆I
• c) ∆I/∆Y
• d) ∆Y/∆C

Answer :  ∆Y/∆I

Question17 :  Multiplier is estimated as:

• a) 1/MPC
• b) 1/1-MPC
• c) 1/1+MPC    
• d) 1/1+MPS

Answer :  1/1-MPC

Question18 :  If MPS =1/4, the value of multiplier will be :

• a) 4
• b) 2
• c) 8
• d) 6

Answer :  4

Question 19:  If MPC = 0, the multiplier will be:

• a) 1
• b) 0
• c) 2
• d) X

Answer :  1

Question20 :  If an investment of Rs. 10 crore results in an increase in income by Rs 50 crore, then the multiplier will be:

• a) 5
• b) 4
• c) 2 
• d) None of these

Answer :  5

Question 21:  Deficient demand leads to :

• a) Deflationary Gap
• b) Inflationary Gap
• c) Both and (a) and (b)  
• d) None of these

Answer :  Deflationary Gap

Question 22:  Deflationary gap is measured as :

• a) AD_F + AD_U
• b) AD_F÷ AD_U
• c) AD_F – AD_U
• d) None of these

Answer :  AD_F– AD_U

Question 23:  Which of the following does not lead to fall in AD ?

• a) Fall in private consumption expenditure
• b) Fall in export
• c) Fall in Import
• d) Fall in Government Expenditure

Answer :  Fall in Import

Question24 :  Deficient or excess demand can be corrected through

• a) Fiscal Policy
• b) Monetary Policy
• c) Both (a) and (b)   
• d) None of these

Answer :  Both (a) and (b)   

Question25 :  With a view to correcting deflationary gap or deficient demand, which of the following fiscal policy measures should be adopted ?

• a) Reduction in taxes
• b) Increase in public expenditure
• c) Reduction in public debt
• d) All of these

Answer :  All of these

Question26 :  Which of the following leads to increase in AD ?

• a) Fall in imports
• b) Increase in investment expenditure
• c) Increase in government expenditure
• d) All of these

Answer :  All of these

Question27 :  Of the following, what are the quantitative measures of monetary policy ?

• a) Repo rate
• b) Open market operations 
• c) SLR
• d) All of these

Answer :  All of these

Question28 :  A tax the burden of which can be shifted on to others, is called :

• a) Indirect Tax
• b) Direct Tax
• c) Ad Valorem
• d) Specific Tax

Answer :  Indirect Tax

Question29 :  The difference between fiscal and interest payment is called :

• a) Revenue Deficit
• b) Primary Deficit 
• c) Bbudget Deficit
• d) Capital Deficit

Answer :  Primary Deficit 

Question30 :  If the value exports exceeds the value of visible imports, the current account deficit will be:

• a) Positive
• b) Negative
• c) Positive or Negative 
• d) None of these

Answer :  Positive or Negative 

 

NCERT MCQ ON Banking:

Question1 :  A commercial bank is a bank that:

• a) Gives long-term loans
• b) Creates credit
• c) Gives short-term loans      
• d) All of these

Answer :  All of these

Question2 :  Which of the following is not concerned with banking organization?

• a) Bank rate
• b) Fiscal deficit
• c) Credit creation
• d) Cash reserve ratio

Answer :  Fiscal deficit

Question3 :  Non- chequeable deposits are those:

• a) Against which no cheque can be drawn at any time
• b) Against which no money can be withdrawn
• c) Which are called fixed deposit
• d) All of these

Answer :  All of these

Question4 :  Credit cards issued by the banks:

• a) Encourage Consumer Spending
• b) Increase Aggregate Demand In the Economy
• c) Both (a) and (b)
• d) None of these

Answer :  Both (a) and (b)

Question5 :  Central bank is an apex bank of the country that:

• a) Controls the entire banking system of the country
• b) Issues currency
• c) Acts as a banker to the government
• d) All of these

Answer :  All of these

Question6 :  Credit control means:

• a) Contraction of credit only
• b) Extension of credit only
• c) Extension and contraction of money supply
• d) None of these

Answer :  Extension and contraction of money supply

Question7 :  Which of the following is not the instrument of credit control?

• a) CRR
• b) SLR
• c) Repo rate    
• d) Managed floating

Answer :  Managed floating

Question8 :  The minimum percentage of a bank’s total deposits which is required to be kept with the RBI is called:

• a) CRR
• b) Repo rate
• c) SLR
• d) Reverse Repo Rate

Answer :  CRR

Question 9:  Which of the following leads to increase in AD ?

• a) Fall in imports
• b) Increase in investment expenditure
• c) Increase in government expenditure   
• d) All of these

Answer :  All of these

Question 10:  Deficient or excess demand can be corrected through

• a) Fiscal Policy
• b) Monetary Policy
• c) Both (a) and (b)   
• d) None of these

Answer :  Both (a) and (b)   

 

NCERT MCQ ON Money:

Question1 :  Barter system refers to that system where in:

• a) Goods are exchanged for goods
• b) Goods are not exchanged at all
• c) Goods are exchanged for domestic currency
• d) Goods are exchanged for foreign currency

Answer :  Goods are exchanged for goods

Question2 :  Which of the following is related to barter system of exchange ?

• a) Double coincidence of wants   
• b) Common unit of value
• c) Limited exchange 
• d) Both (a) and (c)

Answer :  Both (a) and (c)

Question 3:  Out of the following , which is the primary function of money supply?

• a) Store of value
• b) Transfer of value
• c) Measure of value
• d) Bases of credit

Answer :  Measure of value

Question4 :  Which of the following is the adequate definition of money?

• a) Any goods which is commonly used as a store of value
• b) Any goods which is exchanged for gold at a fixed rate
• c) Any goods which is acceptable to a bank
• d) Any goods which is commonly accepted as a medium of exchange

Answer :  Any goods which is commonly accepted as a medium of exchange

Question5 :  Which of the following is the component of M₁ measure of money supply?

• a) Time deposit
• b) Bill of exchange
• c) Treasury bill
• d) None of these

Answer :  None of these

Question6 :  Full- bodied money is that money, whose money value and commodity value are:

• a) Equal
• b) Proportionately equal
• c) Different
• d) None of these

Answer :  Equal

Question7 :  Bank money is that money which is:

• a) Printed by RBI
• b) Printed by the government
• c) Generated in the form of credit creation
• d) None of these

Answer :  Generated in the form of credit creation

Question 8:  Which of the following system governs note issuing in India

• a) Proportionate system     
• b) Minimum reserve system
• c) Fixed fiduciary  issue system
• d) Simple deposit system 

Answer :  Minimum reserve system

Question9 :  In India there are four alternative measures of money supply M₁, M₂, M₃ and M₄ of these M_{1 =}

• a) Currency with people
• b) Currency with people + demand deposits
• c) Currency with people +demand deposits + other deposits with the reserve bank
• d) None of these

Answer :  Currency with people +demand deposits + other deposits with the reserve bank

Question10 :  Which of the following is not the function of commercial bank?

• a) To accept deposits
• b) To offer loans
• c) To provide overdraft facility
• d) To fix CRR

Answer :  To fix CRR

NCERT MCQ ON National Income and Related Aggregates:

Question1 :  Those goods which satisfy human wants directly are called

• a) Intermediate goods         
• b) Consumer goods
• c) Capital goods
• d) None of these

Answer :  Consumer goods

Question 2:  In the production of sugar, sugarcane is

• a) A final good
• b) A capital good
• c) An Intermediate good
• d) None of these

Answer :  An Intermediate good

Question3 :  Which of the following is a semi-durable goods?

• a) Radio
• b) Clothes
• c) Milk
• d) Petrol

Answer :  Clothes

Question4 :  Capital goods are those goods

• a) Which are used in the production process for several years
• b) Which are used in the production process for few years
• c) Which Involve depreciation losses
• d) Both (a) and (c)

Answer :  Both (a) and (c)

Question5 :  Increase in the stock of capital is known as

• a) Capital loss
• b) Capital gain
• c) Capital formation
• d) None of these

Answer :  Capital formation

Question 6:  Net investment is equal to

• a) Gross investment + depreciation
• b) Gross investment – depreciation
• c) Gross investment ×depreciation
• d) Gross investment ÷ depreciation

Answer :  Gross investment – depreciation

Question7 :  Net capital formation causes

• a) Increase in production capacity
• b) Increase in depreciation
• c) Increase in profits
• d) Increase in cost

Answer :  Increase in production capacity

Question 8:  Which of the following leads to depreciation?

• a) Normal wear and tear                 
• b) Damages due to floods
• c) Damages due to market – crash
• d) None of these

Answer :  Normal wear and tear                 

Question9 :  Which of the following leads to unexpected obsolescence?

• a) Change in demand
• b) Natural calamities 
• c) Change in technology
• d) None of these

Answer :  Natural calamities 

Question10 :  Income of the family is the example of which variable?

• a) Stock
• b) Flow
• c) Both stock and flow
• d) Neither stock nor flow

Answer :  Flow

Question11 :  A quantity measured per unit of time period is known as 

• a) Stock variable
• b) Flow variable
• c) Inventory   
• d) None of these

Answer :  Flow variable

Question12 :  Which of the following is a flow variable 

• a) Consumption         
• b) Wealth
• c) Quantity of money
• d) None of these 

Answer :  Consumption         

Question13 :  Domestic product is equal to:

• a) National product + net factor income from abroad
• b) National product – net factor income from abroad
• c) National product ÷ net factor income from abroad
• d) National product × net factor income from abroad

Answer :  National product – net factor income from abroad

Question 14:  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 Income from Abroad
• c) NDP at Factor Cost = NDP at Market Price – Indirect taxes + Subsidies
• d) GDP at Factor Cost = NDP at Factor Cost + Depreciation

Answer :  NNP at Market Price = GNP at Market Price + Depreciation

Question 15:  Which one is correct?

• a) National Income = NDP at Factor Cost – Net Factor Income from Abroad
• b) GNP at Factor Cost = GNP at Market Price + Net Indirect Tax
• c) Personal Income = Private Income – Corporate Tax – Corporate Saving
• d) Disposable Income = Saving of Household Sector – Consumption of Household Sector

Answer :  Personal Income = Private Income – Corporate Tax – Corporate Saving

Question16 :  Basis of the difference between the concepts of market Price and Factor Cost is:

• a) Direct taxes
• b) Indirect taxes
• c) Subsidies     
• d) Net indirect taxes

Answer :  Net indirect taxes

Question17 :  Which one refers to Net Indirect Taxes?

• a) Indirect taxes + subsidies
• b) Indirect taxes – subsidies
• c) Direct taxes – subsidies  
• d) None of the above

Answer :  Indirect taxes – subsidies

Question 18:  Which one leads to Factor Cost ?

• a) Marker Price – indirect Taxes
• b) Marker Price – Net Indirect Taxes
• c) Marker Price + Indirect Taxes
• d) Marker Price + Net Indirect Taxes

Answer :  Marker Price – Net Indirect Taxes

Question19 :  Which one includes depreciation?

• a) GNP at Market Price
• b) NNP at Market Price
• c) NNP at Factor Cost          
• d) None of these

Answer :  GNP at Market Price

Question 20:  Market price of the final goods and services (Including depreciation) produced within the domestic territory of a country during an accounting year  is called:

• a) GDP at Market Price       
• b) GNP at Factor Cost
• c) NNP at Factor cost
• d) GDP at Factor Cost

Answer :  GDP at Market Price       

Question 21:  GNP at market price is measured as:

• a) GDP at market price – Depreciation
• b) GDP at market price + Net factor Income from abroad
• c) GNP at market price + subsidies
• d) NDP at factor cost + Net factor income from abroad

Answer :  GDP at market price + Net factor Income from abroad

Question22 :  Value added method measured the contribution of which of the following within the domestic territory of a country?

• a) One producing enterprise only
• b) All producing enterprises
• c) A few producing enterprises
• d) None of these

Answer :  All producing enterprises

Question 23:  Which of the following is not included in final consumption expenditure?

• a) Household expenditure on food          
• b) Government final consumption expenditure
• c) Household expenditure on education
• d) Expenditure on raw material 

Answer :  Expenditure on raw material 

Question 24:  As a result of double counting, national incomes is:

• a) Over- estimated                
• b) Under- estimated
• c) Correctly – estimated
• d) Not estimated for the entire year of accounting

Answer :  Over- estimated                

Question25 :  Which of these is a limitation in the measurement of social welfare using GDP at constant prices as an index?

• a) Increase in population size
• b) Change in working conditions
• c) Composition of production
• d) All of these

Answer :  All of these

Question 26:  Which of the following is not transfer payment?

• a) Interest on national debt
• b) Retirement pensions
• c) Old- age pensions
• d) Donations

Answer :  Retirement pensions

Question27 :  Which of the following items is not included while estimating GNP of a country at market prices?

• a) Salaries and wages before taxes
• b) Indirect taxes
• c) Remittances by NRIs        
• d) Subsidy

Answer :  Remittances by NRIs        

Question28 :  Which of the following items is not included while estimating national Income by Income method?

• a) Rent
• b) Mixed income
• c) Fixed investment
• d) Undistributed profits

Answer :  Fixed investment

Question29 :  Real national income means:

• a) National income at current prices
• b) National income at factor prices 
• c) National income at constant prices     
• d) National income at average prices of the past 10  years

Answer :  National income at constant prices     

Question30 :  In India, suppliers of money are:

• a) Government of the country
• b) Banking system of the country
• c) Both (a) and (b)
• d) None of these

Answer :  Both (a) and (b)