Question Bank: ७०८ सदाशिव पेठ, कुमठेकर मार्ग, पुणे ४११०३० संपकग क्रमांक (020) 2447 6938 E-mail
Question Bank: ७०८ सदाशिव पेठ, कुमठेकर मार्ग, पुणे ४११०३० संपकग क्रमांक (020) 2447 6938 E-mail
Question Bank: ७०८ सदाशिव पेठ, कुमठेकर मार्ग, पुणे ४११०३० संपकग क्रमांक (020) 2447 6938 E-mail
Question Bank
Standard:- 12th
March 2021
सूचना
1. फक्त शवद्यार्थ्यांना प्रश्नप्रकारांचा सराव करून
देण्यासाठीच
2. सदर प्रश्नसंचातील प्रश्न बोर्डाच्या प्रश्नपशिकेत
येतीलच असे नाही याची नोंद घ्यावी.
QUESTION BANK FOR ECONOMICS (49)
Options: 1) Only a 2) a, b, c 3) b, c, d 4) a, c, d
Options: 1) a, b, c, d 2) a, b, c 3) b, c, d 4) a, c, d
Options: 1) Only a 2) a, b, c 3) b, c, d 4) a, c, d
Options: 1) Only a 2) a, b, c 3) b, c, d 4) a, b, c, d
Options: 1) Only a 2) a, b, 3) b, c, d 4) a, b, c, d
1
vi. Statements related to decrease in demand
a) It is a type of change in demand
b) It takes place due to unfavourable changes in other factors like tastes, income etc.
c) Price remains constant
d) Demand curve shifts to the right hand side of the original demand curve
Options: 1) a, b, c, d 2) a, b, c 3) b, c, d 4) a, c, d
Options: 1) a, b, c, d 2) a, b, c 3) b, c 4) a, b
Options: 1) a, b, c, d 2) a, b, c 3) only b 4) a, b
Options: 1) a, b, c, d 2) a, b, c 3) only b 4) a, b
Options: 1) a, b, c, d 2) a, b, c 3) only c 4) a, b
2
b) Sellers sell differentiated product
c) There is free entry and exit of firms
d) There is considerable element of uncertainty in this type of market
Options: 1) a, c, d 2) a, b, c 3) b, c, d 4) a, b, c, d
Options: 1) c, d 2) a, b 3) b, c, d 4) a, b, c, d
Options: 1) Only a 2) a, b, c 3) b, c, d 4) a, c, d
Options: 1) a, d 2) b, c 3) b, c, d 4) a, c, d
Options: 1) a, b, d 2) a, b, c 3) b, c, d 4) a, c, d
Options: 1) a, b, d 2) a, b, c 3) b, c, d 4) a, c, d
Options: 1) Only a 2) a, b, c 3) b, c, d 4) a, c, d
Options: 1) a, d 2) a, b 3) b, c 4) c, d
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a) It is also referred to as international trade balance
b) Trade surplus arises when export value is greater than import value
c) Trade deficit takes place when import value is greater than export value
d) Balance of trade includes value of imports and exports of visible goods only
iii) Toys made of clay: :: Woollen clothes : place utility Form Utility
iv) Aggregate utility from all units consumed: Total utility:: Additional utility from last unit -
consumed :
Marginal Utility
v) Demand curve: :: Supply curve : upward Downward
xi) Perfect competition : Free entry and exit :: : barriers to entry Monopoly
xii) Monopoly : Price discrimination :: product differentiation Monopolistic Competition
xiv) Laaspeyre's index : :: Paasche's Index : Current year quantities Base year quantities
xvii) : Protection from external attacks :: Optional function : Provision of social security. Obligatory
function
xviii) Income tax: Direct tax :: GST : Indirect tax
xx) Primary market : New issues launched to raise capital :: Old issues through - stock
market. Secondary Market
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xxi) Goods purchased from other countries : :: Goods sold to other countries : Export Import
xxii) Export value > import value : Trade surplus :: Import value > Export value : Trade deficit
i. Branch of economics that deals with small part of national economy – Micro Economics
ii. Average of all prices of goods and services currently being produced in an economy – General Price Level
iii. Utility that arises when ownership of goods is transferred from one person to another – Possession Utility
iv. Aggregate of utility derived by the consumer from all units of a commodity consumed – Total Utility
v. Total demand for a commodity from all the consumers at a given price during a given period
of time. Market demand
vi. Demand for a commodity which can be put to several uses – Composite demand
vii. Degree of responsiveness of a change in quantity demanded to a change in the income of the
consumer – Income Elasticity of demand
viii. Infinite change in the quantity demanded of a commodity taking place due to slight or zero
change in the price – Perfectly Elastic demand
ix. Rise in the quantity supplied of a commodity due to a rise in its price, other factors
remaining constant – Expansion of Supply
x. Net addition made to the total cost by producing one more unit of output – Marginal Cost
xi. Type of market showing some but not all the features of a competitive market – Imperfect competition
xii. Number of firms producing differentiated products which are closely related – Monopolistic Competition
xiii. Index numbers that measure changes in the level of output or physical volume of production
in the economy. Quantity Index Number
xiv. Device that measures changes in an economic variable or a group of variables over a period
of time – Index Number
xv. Net market value of all final goods and services produced within the territorial boundaries of
a country during a period of one year – Net Domestic Product (NDP)
xvi. Wear and tear of capital assets due to their use in the process of production- Depreciation
xvii. Tax paid at the time of production or sale and purchase of a commodity or service- Indirect tax
xviii. Policy that deals with public expenditure, public revenue and public debt – Fiscal Policy
xix. Deposits that are repayable after a certain period of time - Time deposits
xx. Policy that aims at managing the quantity of money in order to meet the requirements of
different sectors of the economy and to increase the pace of economic growth - Fiscal Policy
xxi. Purchase of goods and services by one country from another country- Entrepot Trasde
xxii. Systematic record of all international economic transactions of a country during a given
period usually a year –
Balance of Payment
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4. Find the odd word:
i) Features of Microeconomics
Price theory, Slicing method, limited scope, lumping method
x) Cost Concepts -
Total Cost, Marginal Cost, Average Cost, Production Cost
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Price Index, Quantity Index, Simple Index, Value Index
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5. Complete the Following Statements.
i) Theory of economic welfare, basically deals with _______________
a) Efficiency in allocation of resources
b) Product Pricing
c) Factor Pricing
d) Efficiency in Product
ii) Macroeconomics is the branch of economics which analyses the ________
a) Part Economy
b) Entire Economy
c) Mixed Economy
d) Political Economy
iii) Unit at which MU (Marginal Utility) becomes equal with market price is _______
a) Producers equilibrium
b) Consumers’ equilibrium
c) Partial equilibrium
d) General equilibrium
iv) In relationship between Total Utility & Marginal Utility, MU (Marginal Utility) of a
commodity becomes negative when TU (Total Utility) of a commodity is _______
a) rising
b) constant
c) falling
d) Zero
v) The demand for a commodity which can be put to several uses is known as _____
a) Joint Demand
b) Composite Demand
c) Direct Demand
d) Derived Demand
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c) Prof. Joan Robinson
d) Prof. Keynes
vii) Demand curve is parallel to 'Y' axis in case of __________
a) Perfectly elastic demand
b) Perfectly inelastic demand
c) Relatively elastic demand
d) Relatively inelastic demand
viii) Ed = O in case of __________
a) Luxuries
b) Normal goods
c) Necessities
d) Comforts
ix) Downward movement along the same supply curve should ______________
a) Contraction of Supply
b) Decrease in Supply
c) Expansion of Supply
d) Increase in Supply
x) Net addition made to total cost by producing one more unit of output is ________
a) Average Cost
b) Marginal Cost
c) Total Cost
d) Variable Cost
xi) The interaction of demand and supply to determine price of a commodity in perfect
competition is ________
a) Market Price
b) Normal Price
c) Fluctuating Price
d) Equilibrium Price
xii) Product Differentiation is the main feature of __________
a) Perfect Competition
b) Monopolistic Competition
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c) Monopoly Market
d) Oligopoly Market
xiii) Index number was originally developed to measure _________
a) Changes in quantity level
b) Changes in price level
c) Changes in agricultural production
d) Changes in Industrial Production
xiv) Index number which is computed from a single variable called is a _________
a) Composite Index
b) Double Variate Index
c) Univariate Index
d) Multivariate Index
xv) In India, national income is estimated using ___________
a) Expenditure Method
b) Income Method
c) Output Method
d) Combination of Output and Income method
xvi) NNP is obtained by ___________
a) Deducting Depreciation from GNP
b) Deducting Depreciation from GDP
c) Including Depreciation from GNP
d) Including Depreciation from GDP
xvii) Government borrows from its citizens, banks, central Bank etc. is known as ______
a) Internal Debt
b) Public Debt
c) External Debt
d) Government Debt
xxi) Buying and selling of goods and services within the boundaries of a nation are referred
to as _______
a) Foreign trade
b) Internal trade
c) Export trade
d) Entrepot trade
ii. Assertion (A): Macro- economic analysis shows how the general price level is determined.
Reasoning (R): It deals with determination of the prices of goods and services as well as
factors of production.
Options: 1) (A) is True but (R) is False
2) (A) is False but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of (A)
4) Both (A) and (R) are True and (R) is not the correct explanation of (A)
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iii. Assertion (A): Utility depends on the intensity of want.
Reasoning (R): The concept of utility has no ethical consideration.
Options: 1) (A) is True but (R) is False
2) (A) is False but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of (A)
4) Both (A) and (R) are True and (R) is not the correct explanation of (A)
vi. Assertion (A): Under exceptional cases demand curve has a positive slope.
Reasoning (R): In exceptional cases, consumer buys more when the price of a commodity
rises and buys less when the price of commodity falls.
Options: 1) (A) is True but (R) is False
2) (A) is False but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of (A)
4) Both (A) and (R) are True and (R) is not the correct explanation of (A)
vii. Assertion (A): The slope of demand curve is a rectangular hyperbola in case of unitary
elastic demand.
Reasoning (R): In unitary elastic demand, percentage change in price leads to more than
proportionate change in quantity demanded.
Options: 1) (A) is True but (R) is False
2) (A) is False but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of (A)
4) Both (A) and (R) are True and (R) is not the correct explanation of (A)
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viii. Assertion (A): Total expenditure method measures elasticity of demand at a given point on
the demand curve.
Reasoning (R): Total expenditure refers to the product of price and quantity demanded.
Options: 1) (A) is True but (R) is False
2) (A) is False but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of (A)
4) Both (A) and (R) are True and (R) is not the correct explanation of (A)
xii. Assertion (A): Product differentiation is the main feature of monopolistic competition.
Reasoning (R): Under monopolistic competition, all the products are perfect substitutes to
each other.
Options: 1) (A) is True but (R) is False
2) (A) is False but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of (A)
4) Both (A) and (R) are True and (R) is not the correct explanation of (A)
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Reasoning (R): Index numbers measure only changes in the price level over a period of
time.
Options: 1) (A) is True but (R) is False
2) (A) is False but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of (A)
4) Both (A) and (R) are True and (R) is not the correct explanation of (A)
xiv. Assertion (A): Generally, arithmetic mean is used in the construction of index numbers.
Reasoning (R): Arithmetic mean is simple to compute compared to other averages.
Options: 1) (A) is True but (R) is False
2) (A) is False but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of (A)
4) Both (A) and (R) are True and (R) is not the correct explanation of (A)
xv. Assertion (A): In national income, value of only final goods and services produced in the
economy are considered.
Reasoning (R): National income is always expressed in monetary terms.
Options: 1) (A) is True but (R) is False
2) (A) is False but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of (A)
4) Both (A) and (R) are True and (R) is not the correct explanation of (A)
xvii. Assertion (A): Public expenditure is that expenditure which is incurred by the public
authority [Central, State and Local Bodies]
Reasoning (R): Public expenditure is undertaken for protection of citizens, satisfying their
collective needs and promoting their economic and social welfare.
Options: 1) (A) is True but (R) is False
2) (A) is False but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of (A)
4) Both (A) and (R) are True and (R) is not the correct explanation of (A)
xviii. Assertion (A): Raising debt is the most common activity of any government.
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Reasoning (R): Government expenditure generally exceeds Government revenue.
Options: 1) (A) is True but (R) is False
2) (A) is False but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of (A)
4) Both (A) and (R) are True and (R) is not the correct explanation of (A)
xx. Assertion (A): Stock exchange is an important constituent of the money market.
Reasoning (R): Stock exchange is an organization in which stocks, bonds, commodities etc
are traded.
Options: 1) (A) is True but (R) is False
2) (A) is False but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of (A)
4) Both (A) and (R) are True and (R) is not the correct explanation of (A)
Both are false (Option is unavailable)
xxi. Assertion (A): Trade is an engine of growth for an economy.
Reasoning (R): Trade plays an important role for economic development.
Options: 1) (A) is True but (R) is False
2) (A) is False but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of (A)
4) Both (A) and (R) are True and (R) is not the correct explanation of (A)
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Q.2.A.Identify and Explain the concepts from the given illustrations:
i. Mala collected information about the income and expenditure of twenty five families
from her locality. Macro economics
ii. Ramesh analyzed the total investments, total employment, total consumption and total
savings of the economy for the financial year 2019-20. Lumping method
iii. Rohan created a jewellery box out of pieces of wood. Possession Utility
iv. Kavita consumed an additional unit of bread to satisfy her hunger. Marginal Unit
v. Kaushik purchased 10 kgs of wheat for his monthly consumption at Rs 40/- per kg. Demand
vi. Aman purchased sewing machines and furniture for his tailoring shop. Complemaentary demand
vii. Kiran’s demand for milk remained unchanged even when its price increased by 10%. Unitary inelastic
viii. At Amulya Café, the demand for tea increased by 5% due to a 10% rise in the price of demand
coffee. Cross Elasticity of demand
ix. Amar sells 50 dozens of mangoes daily at Rs 300/- per dozen. Supply
x. Ajay’s papad and pickle producing unit incurred expenditure of Rs 50,000/- on
machinery, Rs 1, 00,000/- towards rent and Rs 2, 00,000/- on wages for the workers
during 2018-19. Cost of Production
xi. Anoop Ayurveda produces unique herbal hair oil which has no close substitutes. Monopoly
xii. Sunrise Cosmetic Company spends on advertisements, broadcasts on radio and television
as well as distributes free samples of its shampoo product to in order to increase its
demand Selling cost
xiii. Bombay Stock Exchange has developed “Sensex” as a stock market index for reflecting
the share prices of listed companies. Special purpose Index number
xiv. Agricultural Research Institute constructed an index number to measure changes in the
production of raw cotton in Maharashtra during the period 2015-2020. Value Index Number
xv. Manish purchased 100 metres of cotton textile to produce readymade shirts at his
garment factory. Intermediate good
xvi. Sarla, a retired school teacher receives a monthly pension of Rs 20,000/- from the
Government. Transfer payment
xvii. Prakash paid an income tax of Rs 62,000/- during the accounting year 2018-2019. Direct tax
xviii. Reserve Bank of India helps to raise loans for both the Central and State Governments by
selling government bonds, securities etc. Open market operations
xix. AVM bank provides d-mat facility, internet banking, and mobile banking facilities to its
customers. Ancilliary function of commercial bank
xx. Kerala-based company K Jewellers intends to raise Rs 1000 crore by fresh issuance of
shares. Primary market (one of the type of Industrial security market)
xxi. Tamil Nadu purchases wheat from Punjab and Uttar Pradesh. Internal trade
xxii. Alfonso mangoes from Maharashtra are sold in the international market.
Foreign trade
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Q.2.B Distinguish between:
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ix. Explain the types of elasticity of demand
x. Explain any four exceptions to the law of supply
xi. Explain any four features of perfect competition
xii. Explain the concept of oligopoly with any four features
xiii. Explain any four features of monopoly
xiv. Explain any four features of monopolistic competition
xv. Explain the types of index numbers
Q.4 State with reasons whether you agree or disagree with the following statements:
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xi. There is a direct relationship between price and quantity supplied
xii. There are many exceptions to the law of supply
xiii. Seller is the price maker under perfect competition
xiv. There is product differentiation under monopolistic competition
xv. Selling cost is the only feature of monopolistic competition
xvi. Index numbers measure changes in the price level only
xvii. Any year can be selected as the base year
xviii. There are many theoretical difficulties in the estimation of national income
xix. Transfer payments are included in national income
xx. Obligatory functions is the only function of the government
xxi. Public finance is more elastic compared to private finance
xxii. Issue of currency notes is the only function of Reserve Bank of India
xxiii. Commercial banks create credit
xxiv. Foreign trade leads to division of labour and specialization
xxv. There is no difference between Balance of payment and Balance of trade
Q.5 Study the following table, figure, passage and answer the questions given below it.
I] TABLES:
i]
ii]
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Units MU OF X MU in terms of Market price per Comparison
money unit =RS.50 between MU
1 unit= RS.10 and Price
1 10 100 50 MU > PRICE Intra Marginal unit
2 8 80 50 MU > PRICE Intra Marginal Unit
3 7 70 50 MU > PRICE Intra Marginal Unit
4 5 50 50 MU = Price
5 3 30 50 MU < PRICE Extra Marginal Unit
6 1 10 50 MU < Price Extra Marginal Unit
iii]
B] Draw Market demand curve based on above Market demand schedule and label it. 2M
iv]
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Price in RS. Quantity supplied
10 300
20 350
30 400
40 450
50 500
60 550
70 600
B] State the relationship between Price and quantity supplied 1M Direct & Positive Relationship
v]
B] Derive the equilibrium price from the above table with the help of
Suitable diagram. 2M
vi]
22
Commodities Price in 2015 in Rs (base year) Price in 2019 in Rs. (current
P0 year) P1
L 20 30
M 60 80
N 100 130
O 40 60
Total ∑Po = 220 ∑ P1 = 300
A] Calculate GROSS NATIONAL PRODUCT& NET NATIONAL PRODUCT from the above data3M
NNP = GNP - Depreciation
GNP = C + I + G + (X-M) + (R-P)
= 200 + 300 + 400 + (-100) + (-50) = 750 - 100
= 900 + (-150) = 650
---------------------------------------------------------------------------------------------------------------------------------------
= 750
II] DIAGRAMS:
i]
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Questions:
Diminishes
A] When Total utility increases Marginal utility ______ 1M
Zero
C] When the total utility is maximum, the marginal utility is____1M
Increase in demand
A] Demand Curve D1D1indicates …………… 1M
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iii]
Expansion in demand
A] Diagram’ A ‘represents ----------------- 1M
Contraction
B] Diagram ‘B’ represents ------------------in demand 1M
downward
C] In diagram ‘A’ movement of demand curve is in -------- direction 1M
upward
D] In diagram ‘B’ movement of demand curve is in -------- direction 1M
iv]
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Perfectly Inelastic demand Perfectly Elastic demand
v]
26
C] Find out the elasticity at point ‘D’ by applying formula Ed = 1 2M
vi]
vii]
27
Goods flow from household to the firm & from
firm to household is called Product or Real Flow.
A] Explain the concept of product (real flow) with the help of above diagram. 2M
B] Explain the concept of Money flow with the help of above diagram. 2M
[III] PASSAGE:
1) Mona visits a shopping mall near her residence. She shops for monthly groceries which
include rice, wheat, sugar, cooking oil and pulses. She purchases additional quantities of
sugar much more than her monthly requirement anticipating that prices may rise in the
coming days due to festivities.
She observes two different qualities of tur dal out of which one quality is inferior and the
other is superior. She does not purchase the low quality tur dal even though its price is
comparatively lower. Instead she prefers to buy superior quality tur dal.
i. Identify the exception to the law of demand in the given passage with reference to 1)Ans: Speculation
purchase of additional quantities of sugar much more than monthly requirement (Expectation about
changes in Price in
anticipating that prices may rise in the coming days due to festivities (1 mark)
future)
ii. Identify the kind of good with reference to low quality tur dal ( 1 mark) 2)Ans: Inferior quality
iii. Express your personal opinion based on the above information. (2 marks)
2) Amul is the first choice of so many ice cream lovers in India among the top ice cream
brand category. Amul brand, owned by Gujarat Co-operative Milk Marketing Federation,
was established in 1946 in Anand, Gujarat.
The second on the list of top ice cream brands in India is Vadilal.
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Cornetto and Magnum are one of the top ice cream brands in India owned by Hindustan
Unilever. Mother Dairy is a very strong name in the Indian ice cream industry. This
company is very similar to Amul, in terms of the products, they manufacture and sell.
Another big player in the ice cream industry is Havmor. Havmor Company has been able
to stand strong as one of the big fighters in the battle of top ice cream brands in India for
1(
very long. Ice cream market also has local and less popular brands apart from the top
brands.)
Amul was (and still is) in the Guinness record for running the longest- ever advertising
campaign. The advertising strategy of Amul through digital marketing made the most
of it through platforms such as Facebook, Twitter, Instagram, and others.
i. Identify the most important feature of the ice cream market (1 market)
ii. Identify the type of cost incurred by firms on advertising campaigns and strategies. ( 1
mark) Selling Cost
iii. Express your personal opinion about the ice cream market based on the above
information (2 marks)
3) In India, markets for automobiles, cement, steel, aluminium, etc, are the examples of
oligopolistic market. In all these markets, there are few firms for each particular product.
Duopoly is a special case of oligopoly, in which there are exactly two sellers. Under
duopoly, it is assumed that the product sold by the two firms is homogeneous and there is
no substitute for it. Examples where two companies control a large proportion of a market
are: (i) Pepsi and Coca-Cola in the soft drink market; (ii) Airbus and Boeing in the
commercial large jet aircraft market.
Operating systems for smart phones and computers provide excellent examples of
oligopolies in big tech. Apple iOS and Google Android dominate smart phone operating
systems. Computer operating systems are overshadowed by Apple and Microsoft
Windows.
4) Corona has slowed down the economy .Lockdown imposed to contain the spread of Corona
virus had resulted in closure of manufacturing and business activities. During this financial year,
the economy is expected to move towards a contractionary phase rather than expansionary phase.
This has been stated in the budget. This is the first paperless budget in the history of India. At the
same time, it is the third post-independence budget to be presented at a time when the economy
is shrinking. The budget shows a fiscal deficit of more than 5%.
29
The Union Finance Minister has presented a budget that seeks to accelerate the economy by
balancing the impact of Corona on the economy on one hand and growing expectations of all
sectors on the other. A significant increase in the allocation for Healthcare by 137% is a feature
of this budget. In this budget, the expected revenue for the year 212-2022 is Rs. 34,35, 000crore
and the expected expenditure is Rs. 35,83, 000 crore.
5) Post-liberalization, public sector banks have diversified into non- traditional activities such as
mutual funds, merchant banking, venture capital funding etc. There is also growth in para-
banking activities such as leasing, hire-purchase and factoring services.
Merchant banking includes issue management, project counselling, working capital financing,
foreign currency loans, portfolio management etc.
Retail banking offers financial services to individuals for personal consumption such as housing
loans, loans for purchase of consumer durables, auto loans, educational loans, credit cards etc.
Banks have been permitted to enter into the life insurance business.
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Q.6 Answer in detail:
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