Board exam

Read the following statements carefully : Statement-1 : Managed floating exchange rate system is an amalgamation of fixed and flexible exchange rate system. Statement-2 : Managed floating exchange rate system is also known as ‘hybrid system’. In the light of the given statements, choose the correct option from the following :

1. AStatement 1 is true and Statement 2 is false.
2. BStatement 1 is false and Statement 2 is true.
3. CBoth Statements 1 and 2 are true.
4. DBoth Statements 1 and 2 are false.

If a country exports goods worth of ₹ 600 crores and imports goods worth of ₹ 450 crores, the value of Balance of Trade of the country would be ______ of ₹ ______ crores.

1. Adeficit, 150
2. Bsurplus, 150
3. Cdeficit, 1,050
4. Dsurplus, 1,050

(a) In an economy ; C = 200 + 0.75 Y (where C is consumption expenditure and Y is National Income). Investment expenditure is ₹ 4,000 Crore. Calculate the following :

1. (i)
   Equilibrium level of income.
2. (ii)
   Total consumption expenditure at equilibrium income level. OR (b) Explain the adjustment mechanism in case ex-ante savings are greater than ex-ante investments.

Read the following text carefully : Union Food and Consumer Affairs Minister said that the Central Government has taken many proactive steps in the past few years to control retail prices of food items. He said that the government aims to keep inflation under control without compromising the country’s economic growth. Retail inflation inched up to a three-month high of 5.55% in November 2023 driven by higher food prices. Inflation has been declining since August 2023, when it touched 6.83%. 140 new price monitoring centres had been set up by the Central Government to keep a close watch on wholesale and retail prices of essential commodities. The Government has banned the export of many food items like wheat, broken rice, non-basmati white rice, onions etc. It has also reduced import duties on edible oils and pulses to boost domestic supply and control price rise. On the basis of the given text and common understanding, answer the following questions :

1. aMention the number of new price monitoring centres set up by government.
2. bState any two proactive measures taken by government to boost domestic supply and reduction in prices.
3. cExplain any one monetary measure used to control inflation.

(a)

1. (i)
   Explain any two precautions to be adopted while estimating National Income by Expenditure method.
2. (ii)
   “Higher Gross Domestic Product (GDP) always means higher per capita availability of goods in the economy.” Defend or refute the given statement as the index of welfare of the people of that country. OR (b) (i) Distinguish between Stock and flow variables, using suitable examples. (ii) Explain the components of ‘Profit’ as per Income Method of estimating National Income (NNP₍FC₎).