1

This question paper contains two parts:

Part A - Macro Economics (40 marks)

Part B - Indian Economic Development (40 marks).

2

Marks for questions are indicated against each question.

3

Question No. 1-10 and Question No. 18 – 27 (including two Case Based Questions)

are 1 mark questions and are to be answered in one word/sentence.

4

Case Based Questions (CBQ’s) are Question No. 7-10 and Question No. 25-27.

5

Question No. 11-12 and Question No. 28 – 29 are 3 marks questions and are to be answered in 60 - 80 words each.

6

Question No. 13-15 and Question No. 30 – 32 are 4 marks questions and are to be answered in 80-100 words each.

7

Question No. 16-17 and Question No. 33 – 34 are 6 marks questions and are to be answered in 100-150 words each.

8

Answers should be brief and to the point and the above word limit be adhered to as far as possible.

Q.No

QUESTIONS

Marks

PART A - MACRO ECONOMICS

1

Inventory is a ...................concept whereas the change in inventory is a ...................... concept.                  (Fill up the blank with correct alternative)

a.   stock, flow b.   flow, stock c.   stock, stock d.   flow, flow

Or

1

If in an economy the value of Net Factor Income from Abroad is ₹  200 crores and the value of Factor Income to Abroad is ₹ 40 crores. Identify the value of Factor Income from Abroad.             (Choose the correct alternative)

a) ₹ 200 crores                 b) ₹ 160 crores c) ₹ 240 crores                 d) ₹ 180 crores

1

2

In  the  present  COVID-19  times,  many  economists  have  raised  their concerns that Indian economy may have to face a deflationary situation, due to reduced economic activities in the country.

Suppose you are a member of the high powered committee constituted by the Reserve Bank of India (RBI).

You have suggested that as the supervisor of commercial banks, ................

(restriction/release) of the money supply be ensured, by the Reserve Bank of India (RBI).                                              (Choose the correct alternative)

1

3

Supply of money refers to…….................      (Choose the correct alternative)

a.   currency held by the public

b.   currency held by Reserve Bank of India (RBI)

c.   currency held by the public and demand deposits with commercial banks

d.   currency held in the government account

1

4

Identify the correct pair of formula from the following column I and II: (Choose the correct alternative)

Alternatives:

a) A - i        

b)  B - ii            

c) C - iii             

d) D - iv

1

5

Identify which of the following statements is true? (Choose the correct alternative)

a.   The  flexible  exchange  rate  system  gives  the  government  more