CBSE SAMPLE QUESTION PAPER 

(2021-2022)

ECONOMICS

XII STD
TERM 1

Time: 90 minutes                                                                                           Maximum Marks: 40

    SECTION A
(20 questions out of 24 questions are to be attempted)

1. The Government can achieve its budget objective of ‘Redistribution of Income’ by____________
(Fill up the blank with correct alternative)
a) managing the General Price Level in the economy to the desired level.
b) increasing the Gross Domestic Products (GDP) of the economy.
c) bringing the production of goods and services under its direct and absolute control.
d) rationalisation of taxes in pro-poor direction.

2 .Balance of Payments of an economy records_____________ for a fiscal year.
. (Fill up the blank with correct alternative)
a) income and expenditure of the government
b) inflow and outflow of funds of the government
c) inflow and outflow of foreign exchange to/from the economy
d) inflow and outflow of loans to/from the rest of the world

3 .Identify which of the following bank does not interact directly with the general public?
(Choose the correct alternative)
a) Bank of India
b) State Bank of India
c) Central Bank of India
d) Reserve Bank of India

4. Identify which of the following is not an example of ‘invisible item’ under Current Account of the
Balance of Payments transactions: (Choose the correct alternative)
a) Air and sea transport
b) Postal and courier services
c) Education-related travel
d) Merchandise linked transactions

5. Read the following statements carefully and choose the correct alternative from the following:
Statement 1 – Demonetization was the step taken by the Government of India in order to tackle
the problems of corruption, black money, terrorism and circulation of fake currency in the Indian
Economy.
Statement 2 – Demonetization has ensured improved tax compliance in India over the period of
time.
Alternatives:
a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false

6 .Ms. Sakshi, an economics teacher, was explaining the concept of ‘minimum percentage of the
total deposits to be kept by any commercial bank with the Central Bank of the country, as per
norms and statute prevailing in the country’.
From the following, choose the correct alternative which specifies towards the concept
explained by her?
a) Cash Reserve Ratio
b) Repo Rate
c) Bank Rate
d) Statutory Liquidity Ratio

7. Two friends Mira and Sindhu were discussing the exchange rate systems.
‘Under this system, the exchange rates are determined by the market forces of demand and
supply. However, deliberate efforts are made by the competent authority to keep the exchange
rates within a specific range’.
The above-mentioned statement was given by Sindhu, identify the type of exchange rate system
was she talking about?
a) Fixed Exchange Rate
b) Floating Exchange Rate
c) Managed Floating Exchange Rate
d) Managed Fixed Exchange Rate

8. Read the following statements carefully and choose the correct alternative from the following:
Statement 1 – Public goods are those goods and services that are collectively consumed by the
public.
Statement 2 – Public goods are excludable and rivalrous in nature.
Alternatives:
a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false

9 .Under the Balance of Payments structure of a nation, the two main categories of accounts for
the classification of the transactions are___ and ___. (Fill up the blank with correct alternative)
i. current account
ii. unilateral transfer account
iii. capital account
iv. loan account
Identify the correct alternatives from the following:
Alternatives:
a) i and ii
b) i and iii
c) iii and iv
d) iv and i

10. Identify which of the following is not a function of the Reserve Bank of India?
(Choose the correct alternative)
a) To act as the banker to the Government of India.
b) To act as the custodian of the gold reserve of India
c) To act as the financial advisor to the Government of India
d) To issue coins and one rupee note

11 .Industrial Policy Resolution (IPR) 1956 formed the basis of the_________ Five Year Plan.
(Fill up the blank with correct alternative)
a) First
b) Fourth
c) Second
a) Third

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ECONOMICS-SQP 12TH STD CBSE 21-22

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