HSC Commerce (English Medium) 12th Standard Board Exam - Maharashtra State Board Question Bank Solutions

Capital market is a market for ______.

Assertion (A): Raising debt is the most common activity of any government.

Reasoning (R): Government expenditure generally exceeds government revenue.

Identify & explain the concept from the given illustration

Reserve Bank of India helps to raise loans for both the Central and State Governments by selling government bonds, securities etc.

Distinguish Between:

Increase in supply and Decrease in supply

State with reason whether you agree or disagree with the following statement.

There is an inverse relationship between price and demand.

Assertion and reasoning question:

• Assertion (A): The money market economises the use of cash.
• Reasoning (R): The money market does not deal with financial instruments that are close substitutes for money.

Distinguish between internal debt and external debt.

A rightward shift in supply curve shows ______.

Constituents in the organised money market in India:

1. Commercial banks
2. Moneylenders
3. Traders
4. Discount and Finance House of India

Write a statement of the Law of Demand.

• Assertion (A): Debt raised by the government from borrowings from the International Monetary Fund is an external debt.
• Reasoning (R): The Government of India may take loans from International Monetary Fund for Mumbai Metro Train.

Complete the correlation:

Government securities market : Capital market : : Loan companies : ______.

Complete the correlation:

Rise in price : Expansion of supply : : Fall in labour cost : ______.

Give an economic term:

A debt instrument issued by a government with a promise of repayment at maturity.

Find the odd word out:

Transfer payments:

Complete the correlation:

Rise in price : Expansion of supply : : Fall in transport cost : ______.

Give an economic term:

Debt is raised by the government from borrowings from its citizens.

Assertion (A) : Money market economizes use of cash

Reasoning (R) : Money market deals with financial instruments that are close substitutes of money

A rightward shift in supply curve shows ______.

A rightward shift in supply curve shows ______.