GNP(fc) = GNP(mp) - ______.
Concept: Aggregates Related to National Income - Gross National Product (GNP)
What is ‘elasticity of demand’? Explain the factors determining elasticity of demand.
Concept: Elasticity of Demand
Medium of exchange and measure of value is ______.
Concept: Function of Money - Primary Function
Briefly explain two reasons for the adverse Balance of Payments in any economy.
Concept: Concept of Balance of Payments Account
Draw a well labelled diagram of two sector model of a circular flow of income including the financial sector.
Concept: Circular Flow of Income (Two Sector Model)
Explain the steps involved in calculating the National income by Income method.
Concept: Methods of Measurement of National Income > Income Method
How is the rate of exchange determined in a flexible exchange rate system?
Concept: Concept of Foreign Exchange Rate
Read the given extract carefully and answer the following questions.
| Mr. X wanted to buy an expensive motorcycle for his son but he did not have sufficient money to buy it. He approached a public sector commercial bank for the loan. The bank asked Mr. X to deposit 20% cash of the loan amount and rest 80% of the loan amount was given by the bank. |
- Briefly explain a Commercial Bank.
- What is the regulation of consumer credit in selective credit control?
- Name the bank which controls all the commercial banks and financial institutions in the country.
Concept: Money Creation Or Credit Creation by the Commercial Banking System
Give one difference between a Direct tax and an Indirect tax.
Concept: Direct and Indirect Tax
How is it determined by using Saving and Investment approach?
Concept: Concept of Aggregate Demand and Aggregate Supply
Transfer earning in National income refers to ______.
Concept: Precautions and Difficulties of Measuring National Income Method
A consumer spending on the purchase of goods regardless of the income in possession is an example of _______ consumption.
Concept: Consumption Function and Propensity to Save
Complete the following schedule -
| Y | C | APC | MPC |
| 100 | 90 | ? | ? |
| 120 | 108 | ? | ? |
Concept: Consumption Function and Propensity to Save
What is meant by the following function of the Central bank:
Clearing house
Concept: Function of Central Bank - Bank of Issue
What is meant by the following function of the Central bank:
Lender of the last resort
Concept: Function of Central Bank - Bank of Issue
Distinguish between:
Cash Reserve Ratio and Statutory Liquidity Ratio
Concept: Central Bank Function - Banker's Bank
Firm A sells flour to firm B for ₹ 100/- Firm B sells biscuits to the wholesaler C for ₹ 160/- and Firm C sells biscuits to consumers for ₹ 200/-. Hence, the gross value added is ______.
Concept: National Disposable Income (Gross and Net)
Differentiate between Cash Credit and Outright Loans.
Concept: Central Bank Function - Controller of Credit
Discuss the mechanism of investment multiplier with the help of a numerical.
Concept: Investment Multiplier and Its Mechanism
Explain the following method of redemption of Public Debt:
Debt conversion
Concept: Public Debt - Redemption
