CUET UG 2023 — Macro

When nation is a borrower from other countries means:

Which of the following are sources of revenue expenditure by the Government ? (A) Repayment of loans (B) Expenditure on Defence services (C) Central assistance for states (D) Interest payments (E) Lending to commercial banks Choose the correct answer from the options given below :

Which of the following statements is true. If exchange rate changes from \$1 = Rs 72 to Rs 81. A. Import will fall B. Import will rise C. Exports will rise D. National Income will rise E. National Income will fall Choose the correct answer from the options given below:

Match List - I with List - II. | | List - I (Curves) | | List - II (Shape) | |---|---|---|---| | (A) | Aggregate demand curve | (I) | Upward sloping line with a positive intercept on y-axis | | (B) | Aggregate supply curve | (II) | Parallel to x axis | | (C) | Autonomous investment curve | (III) | 45 degree line passing through the origin | | (D) | Consumption function | (IV) | Parallel to consumption function | Choose the correct answer from the options given below :

Value Added Method of calculating aggregate annual value of goods and services is also called :

The shape of supply curve of foreign exchange is :

Aggregate demand for final goods doesn't include.

Which of the following will be included in the National Income of India ? (A) Donations given to a religious institution. (B) Payment of Income Tax (C) Scholarship given to students (D) Profits earned by an Indian company from its branch in France (E) Purchase of a television set by a consumer household Choose the correct answer from the options given below :

Given AD = C + I + CY, change in autonomous consumption will lead to : (A) Change in equilibrium level of income (B) Change in aggregate demand (C) Change in Investment (D) Change in aggregate demand and no change in equilibrium level of income (E) Change in marginal propensity to consume Choose the correct answer from the options given below :

To find Gross value added, arrange the following in sequence : (A) Import (B) Export (C) Domestic sales (D) Domestic purchase of Raw material (E) Change in inventories Choose the correct answer from the options given below :

If MPC and MPS are equal, then the value of multiplier is :

GST (Goods and Service Tax) is mainly consumption based tax with a one main principle which is:

Arrange the sequence of events relating to establishment of equilibrium in the economy. (A) This will cause unintended decumulation of inventories (B) This process continues till ex-ante aggregate demand becomes equal to ex-ante aggregate supply (C) The producers will respond by increasing output (D) If ex-ante demand for final goods by firms and households is greater than the output the producers plan to produce in a given year (E) When output increases, both employment and income rise Choose the correct answer from the options given below :

In case of an unexpected fall in turnover of a firm, who is producing a certain commodity. There will a situation of _______________ Choose the correct option.

A fall in the bank rate __________ the money supply.

When autonomous receipts are less than autonomous payments. The balance of payments is in :

Match List - I with List - II. List - I | List - II (A) Indirect Tax | (I) GDP of India (B) Stock | (II) Corporate Tax (C) Flow | (III) Goods and Service Tax (D) Direct Tax | (IV) Natural Wealth of an Economy Choose the correct answer from the options given below :

What needs to be subtracted from gross fiscal deficit to get gross primary deficit ?

Which of the following items can be included in Capital Account in BOP ? (A) An Indian buys a UK Car company (B) A Swedish citizen buys shares of Reliance company (C) Export of Rajasthan's blue pottery to an Italian restaurant owner (D) Apple I-phones gifted by an Indian company to its employees Choose the correct answer from the options given below :

Real G.D.P. increases only when.

Match List - I with List - II. | | List - I | | List - II | |---|---|---|---| | (A) | Marginal Propensity to Save | (I) | $\frac{\Delta Y}{\Delta I}$ | | (B) | Average Propensity to Consume | (II) | $\frac{\Delta S}{\Delta Y}$ | | (C) | Value of Investment Multiplier | (III) | 1 - APS | | (D) | Marginal Propensity to Consume | (IV) | $\frac{\Delta C}{\Delta Y}$ | Choose the correct answer from the options given below :

At a particular price level, when aggregate demand for final goods equals aggregate supply of final goods, the product market reaches to its __________.

Revenue Receipts in the government budget include : (A) Government Borrowings (B) Tax Revenue (C) Interest receipts on loans by government (D) Dividends earned by government on its investment Choose the correct answer from the options given below :

The transactions which are determined by the gap in the balance of payments, whether a deficit or surplus is called :

__________ refer to the benefits (or harms) a firm or an individual causes to another for which they are not paid (or penalised).

The Paradox of Thrift means :

MPC stands for.

If Cash Reserve Ratio is 20%, what will be the value of money multiplier ?

The International Bank for Reconstruction and Development (IBRD) is popularly known as_______.

Which G.D.P. is the indicator of growth and development of a country?

Match List - I with List - II. List - I | List - II (A) Trade includes export and import of goods | (I) Capital Account (B) Foreign Direct Investment | (II) Invisible Trade (C) Net sale of service products like banking and tourism | (III) Transfer Payment (D) The Receipts of payment without providing goods and services | (IV) Current Account Choose the correct answer from the options given below :

Find out correct one : (A) MPC is the change in consumption per unit change in income (B) MPS is the saving per unit of income (C) APC is the consumption per unit of income (D) APS is the change in saving per unit change in income Choose the correct answer from the options given below :

Which of the following are the components of current Account ? (A) Trade in Services (B) Trade in Goods (C) Investment (D) External borrowings (E) External Assistance Choose the correct answer from the options given below :

Arrange the sequence of events in the correct order relating to a quantitative tool used by the central bank during the times of inflation. A. Hence the money supply in the economy decreases B. As a result, loans taken by commercial banks become more expensive C. The central bank increases the bank rate D. This reduces the reserves held by the commercial banks Choose the correct answer from the options given below:

Arrange the following statements in correct sequence relating to change in exchange. (A) The Central Bank intervenes to purchase dollars rate between Dollars and Rupee in the foreign exchange market. (B) The government sets the exchange rate above the equilibrium exchange rate. (C) This will absorb the excess supply of dollars in the foreign exchange market. (D) It will result in excess supply of dollars in the foreign exchange market. Choose the correct answer from the options given below :

Equilibrium in product market achieved when.

Profits obtained by a foreign firm's branch in India will be recorded on which side and in which account of balance of payment.

What are the major components of capital Account among the following ? (A) Bank Deposits (B) Investment (C) External Borrowings (D) External Assistance Choose the correct answer from the options given below :

People demand foreign exchange because:

C=40+0.8Y and I =10, then what will be the equilibrium level of income?

Calculate the total deposits made by commercial banks when the primary deposit is Rs. 20 Crores and cash reserve ratio is 20%. Choose the correct option.

The Household receive transfer payments from Government and firms (Pension, Scholarship, Prizes, etc.) They are a part of :

Which one is not the objective of government budget?

__________ is a revenue receipt of the Government.

If all the people in economy increase savings, what will happen in the economy ?

As a bankers' bank, what is the role played by RBI? A. Custodian of cash reserves B. Maintain Foreign Exchange Reserves C. Currency Issue D. Lender of last resort E. Clearing house Choose the correct answer from the options given below:

Which out of the following will be included in National Income ? (A) Ramesh sold his car for Rs. 5,00,000 which he used for 2 years (B) Interest paid on car loan taken by Mohan (C) Interest on debentures (D) Radha purchased goods worth Rs. 1000 to prepare cakes to be sold in an exhibition (E) Profit earned by Reliance Industries from their branch in London Choose the correct answer from the options given below :

RBI can influence money supply by changing the Bank rate. An increase in Bank rate can be termed as :

Disinvestment of Public Sector Undertakings, is a part of __________.

Choose the correct example of Revenue Expenditure.

A __________ account deficit is financed by net capital flows from the rest of the world, thus by a capital account surplus.

A country's consumption function described as C=500+ 0.7 Y the Autonomous consumption

If output in an economy is decreasing but G.D.P. of country is increasing which G.D.P. it is:

If MPS in the economy increases, what will be the effect on MPC of economy ?

To establish a parity in taxation in the country and extend the principles of 'value added taxation' to all goods and service a tax is introduced. The name of the tax is :

Chronologically arrange the following events. A. Announcement of Demonetisation B. Circulation of Fake Currency C. Rs 500 and 1000 Notes lost legal tender D. Impact on Economic Activities E. New Rs 2000 Currency Note in the circulation Choose the correct answer from the options given below:

Deficit Demand Occurs when : (A) Equilibrium level of output is less than full employment level (B) When AD < AS (Aggregate Demand less than Aggregate Supply) (C) When output decreases (D) Demand is not enough to employ all factors of production (E) Prices will decline in the long run Choose the correct answer from the options given below :

Match List I with List II | | LIST I | | LIST II | |---|---|---|---| | A. | Product will not pass through further transformation | I. | Capital Good | | B. | A product used as raw material or input for production | II. | Final Good | | C. | The good which enables for production on process | III. | Consumer Good | | D. | Goods purchased by ultimate consumer | IV. | Intermediate Goods | Choose the correct answer from the options given below:

The RBI can influence money supply by changing __________ at which it gives loan to the commercial Banks.

Revenue Deficit is

Match List - I with List - II. List - I | List - II (A) Income Method | (I) Calculated at current prices (B) Expenditure Method | (II) Calculated at constant prices (C) Real GDP | (III) Aggregate of final expenditures (D) Nominal GDP | (IV) Aggregate of factor incomes Choose the correct answer from the options given below :

One kind of deficit in the annual Budget will have to be financed through borrowings. It indicates the total borrowing requirements of the government from all sources it is known as :

When Central Bank buys securities, this agreement of purchase also has specification about date and price of the resale, it is called:

The value of investment multiplier in an economy is determined by :

From the following data, Calculate Primary Deficit. | | Rs (crore) | |---|---| | Revenue expenditure | 22,250 | | Capital expenditure | 28,000 | | Revenue receipts | 17,750 | | Capital receipts (net of borrowing) | 20,000 | | Interest payment | 5,000 | | Borrowings | 12,500 |

When value of final goods and services are estimate at current price it is?

If Trade Deficit is Rs 2000 crores and imports is worth Rs 4000 crore, then the value of exports will be :

The shape of investment function when I is autonomous curve is represented through :

Current Account components of trade in services include : (A) Gifts, Remittances (B) Net Non-Factor Income (C) Net Investment Income (D) Grants Choose the correct answer from the options given below :

Arrange the following statements relating to open market operations in the correct sequence. (A) There by resulting in an increase in money supply (B) Central bank pays for it by giving a cheque (C) Central bank buys a government bond in the open market (D) This increases the total amount of reserves in the economy Choose the correct answer from the options given below :

The book 'General Theory of Employment, Interest and Money', has been written by the distinguished economist.

Match List - I with List - II. List - I | List - II (A) Flexible exchange rate | (I) Market forces (B) Devaluation | (II) Pegged exchange rate (C) Fixed exchange rate | (III) Floating exchange rate (D) Depreciation | (IV) Government Choose the correct answer from the options given below :

National Income can also be called :

Which of the following statement is true about Autonomous transactions?

Arrange the following operations in a sequential manner in order to calculate $NNP_{FC}$ from $GDP_{MP}$ A. $GDP_{MP}$ - Net Indirect Taxes B. $NDP_{FC}$ + Net Factor Income From Abroad C. $GDP_{FC}$ - Depreciation Choose the correct answer from the options given below:

If C= X+0.6Y & Investment is Rs 1,500 Equilibrium level of income in economy would be 4050, find out the autonomous consumption.

Escheat is an example of:

Which of the following is correct statement?

Keeping output constant nominal GDP increases because.

Match List - I with List - II. | List - I | List - II | |---|---| | (A) Revenue Receipts | (I) Expense on functions of government | | (B) Capital Expenditure | (II) Disinvestment | | (C) Capital Receipts | (III) Tax Revenue | | (D) Revenue Expenditure | (IV) Expenses on building and machinery | Choose the correct answer from the options given below :

Addition to the stock of capital of a firm is known as :

The ratio of money held by the public in currency to that held as deposits in commercial banks is called .

To get GVA at basic prices, one among the following will be added to GVA_FC. Choose the correct option from below :

Regarding Average Propensity to save : (A) APS can be zero (B) APS can be more than one (C) APS can be negative (D) APS can be one (E) APS can be positive Choose the correct answer from the options given below :

Which among the following will lead to a reduction in the money supply of the economy ?

Arrange the following steps of calculating National Income by value added method in the proper sequence. (A) Calculate Gross value of output (B) Calculate Gross value added (C) Calculate value of output in Primary, Secondary and Tertiary sector (D) Calculate National Income Choose the correct answer from the options given below :

Match List - I with List - II. | | List - I | | List - II | |---|---|---|---| | (A) | Inventories | (I) | GNP - Depreciation | | (B) | Rent | (II) | GDP + NFIA | | (C) | GNP | (III) | Capital | | (D) | NNP | (IV) | Factor Payment | Choose the correct answer from the options given below :

Match List - I with List - II. | | List - I | | List - II | |---|---|---|---| | (A) | Value of output | (I) | Sales + Change in stock | | (B) | Operating surplus | (II) | Sales + Change in stock - Intermediate consumption | | (C) | Profit | (III) | Rent + Interest + Royalty + Profit | | (D) | Value added | (IV) | Corporation tax + Undistributed profit + Dividend | Choose the correct answer from the options given below :

Which of the following products have been kept out of GST for the time being but with passage of time it will get subsumed in GST ?

Net Indirect tax refers to :

If we deduct depreciation from $GNP_{mp}$ the measure of aggregate income that we obtain is called :

Identify the correct option. Full form of 'ITC' in Indian Tax Context.

From the following data calculate net domestic product at factor cost. | S.No. | Item | Rs. crore | |-------|------|-----------| | (i) | Depreciation | 20 | | (ii) | Gross National Products at factor cost | 1000 | | (iii) | Net factor income from abroad | 30 | | (iv) | Net indirect taxes | 10 |

The aggregate demand line shifts parallel upwards. The reason behind this is :

Given a Cash Reserve Ratio (CRR) being 20%, the value of the money multiplier will be_______.

A fall in Bank rate can increase the ________ .

Which of the following are to be considered while Measuring Fiscal Deficit? A. Capital expenditure B. Revenue receipts C. Debt creating receipts D. Revenue expenditure E. Deficit on current A/c Choose the correct answer from the options given below:

Identify the correct formula of calculating of domestic income by Expenditure Method.

Calculate compensation of employees from the following items: | Items | Rs in Crores | | --- | --- | | Profit after tax | 20 | | Interest | 45 | | $GDP_{MP}$ | 200 | | Goods and service tax | 10 | | Depreciation | 50 | | Rent | 25 | | Corporate tax | 5 | Choose the correct option.

If the value of nominal GDP is Rs 5500 and of real GDP is Rs 2200, what is the value of GDP Deflator ?

The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -- Rs 1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagarik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial bank on exposure norms and statutory and other restrictions & KYC. Which function of central Bank is refered to in the above paragraph.

Net National Product at factor cost (NNP_FC) is defined as :

Flexible exchange rate is determined by:

When in the Economic, Bank rate decrease, Arrange the following statements relating to change in bank rate in the sequencing order : (A) Loans taken by commercial bank become cheaper (B) Increases money supply (C) Bank rate is decreased by RBI (D) Reserves held by commercial banks increases Choose the correct answer from the options given below :

Interest paid on loan taken from IMF will be recorded in ________ side of ________ account.

What will be the effect on Aggregate Demand when MPC decreases ?

Identify the symbol that is used to denote autonomous consumption.

The 'Effective Demand Principle' states that aggregate output is determined solely by :

Money in the form of currency (Notes+Coins) held by the public, Net Demand deposits held by commercial Banks and the saving deposits with Post Office saving banks are known as :

Exchange Rate is the price of a currency expressed in terms of.

Which of the following is not one of the components of aggregate demand in the economy ?

The Government Budget has a revenue deficit this can be financed by : ___________ . A. Borrowings B. Tax Revenue C. Disinvestment D. Indirect taxes Choose the correct answer from the options given below:

Match List I with List II | LIST I | LIST II | | --- | --- | | A. Revenue Receipt | I. Increase in Liability | | B. Capital Receipt | II. Do not increase in Asset | | C. Revenue Expenditure | III. Increase in Asset | | D. Capital Expenditure | IV. Do not increase Liability | Choose the correct answer from the options given below:

Calculate operating surplus from the following. | | | (Rs in Cr) | | --- | --- | --- | | a | Rent & Interest | 50 | | b | Bonus | 80 | | c | Profit After Tax | 30 | | d | Tax rate | 40% | Choose the correct option.

Which of the following is not true about a commercial Bank?

Full form of IBRD

Final goods are those goods.

The sum total of MPC and MPS is always equal to:

"The ratio of total money supply to the stock of high powered money in an economy" is referred to :

How does RBI act as a supervisor to bank?

What will be the effect on stocks when aggregate demand decreases ?

Capital Account of balance of payment includes : (A) Export and Import of goods (B) Receipt of loans from abroad (C) Purchase of shares in foreign countries (D) Current transfers from Abroad (E) Repayment of International loans Choose the correct answer from the options given below :

Match List I with List II | LIST I | LIST II | | --- | --- | | A. Accommodating items | I. International purchases | | B. Capital Account | II. Central Bank | | C. Balance of trade | III. Below the line items | | D. Dirty Floating | IV. Visible items | Choose the correct answer from the options given below:

More foreign currency will flow into the home country when :

Which of the following is not true regarding Goods and Services Tax (GST) ?

What will be the GDP by Income Method in crore ? | | Firm A | Firm B | |---|---|---| | Wages | 20 | 60 | | Profits | 30 | 90 |

Ex ante consumption implies :

Slope of Consumption curve is denoted by :

Decrease in value of domestic currency to foreign currency in fixed exchange rate system is called :

This bank does not accept deposits from the public and does not lend to general public :

Which of the following is a part of Domestic product of India ? (A) Gifts given by employer to his employees (B) Profits earned by branches of country's bank in other countries (C) Profits earned by foreign companies in India (D) Purchase of goods by foreign tourists Choose the correct answer from the options given below :

Which of the following statements are true ? (A) Managed floating is also called dirty floating. (B) Making domestic currency cheaper by government is called devaluation (C) Exchange rate determined by the market forces of demand and supply, known as floating exchange rate. (D) In a fixed exchange rate system, the government fixes the exchange rate. Choose the correct answer from the options given below :

Which of the following are correct statements related to stock and flow? A. Flows are defined over on 1st January B. Flows are defined over a period of time C. Flows and stocks are defined as a mutual understanding D. Stocks are defined from January to December E. Stocks are defined at a particular point of time Choose the correct answer from the options given below:

When Cash Reserve Ratio is 20% then with the deposit of Rs 1000, Money creation will be Rs 5000, Money multiplier is :

Which deficit includes only such transactions that affect the current income and expenditure of the government ?

Receipts of the Government that are non-redeemable and cannot be reclaimed from the Government, are under which type of revenues of Government ?

Accounting of National Income at constant price is called :

Which of the following is not true about Public goods?

When Central Bank buys securities without any promise to sell them later, it is known as?

If all the depositors, one day come to withdraw all the cash, what would be role played by RBI?

Repo-Rate is the rate at which RBI lends money to commercial Banks for __________.

Calculate the factor income from Abroad from the following. | | | (Rs in core) | | --- | --- | --- | | (a) | NNP at market price | 550 | | (b) | Net Indirect taxes | 30 | | (c) | NVA at factor cost | 540 | | (d) | Factor income to Abroad | 50 |

On which products Government of India levies two types of taxes, one is GST and the other one is Central Excise Duty ?

Match List I with List II | LIST I | LIST II | | --- | --- | | A. Stocks | I. Expected constant loss in value of a capital | | B. Flows | II. Unexpected destruction of capital | | C. Depreciation | III. Have time dimension | | D. Capital loss | IV. Do not have any time dimension | Choose the correct answer from the options given below: