(English Medium) ICSE Class 10 - CISCE Question Bank Solutions for Economic Applications

Which of the following statements are correct and which are incorrect? Give reasons.

1. Central bank is a currency authority.
2. Bank rate is a qualitative method of credit control.
3. Quantitative methods regulate direction of credit.
4. Bank rate is the rate at which commercial banks give loans to the public.
5. Central bank should sell government securities when credit is to be expanded.

Who controls the credit supply in an economy?

What is this policy called that controls the credit supply in an economy?

Identify the following Credit Control measure undertaken by the Central Bank during inflation.

The Central Bank sells government approved securities to the public.

Identify the following Credit Control measures undertaken by the Central Bank during inflation.

The Central Bank increases the rate at which it lends to the Commercial Bank. 

What do you mean by credit control?

What are quantitative methods of credit control?

Which are qualitative methods of credit control?

What is meant by Legal Reserve Ratio?

Define moral persuasion.

Give an example of margin requirements.

Describe two quantitative credit control measures of the Central Bank.

Inflation is a state of rising prices.

Law of supply does not apply to ______.

State one exception to the law of supply.

Choose the correct order of capital formation.

The extent of division of labour depends on the size of the market. Briefly explain.

State any two factors which determine capital formation in a country.

'Savings is essential for capital formation.' Explain.

Explain in brief the first stage of capital formation.