delhi public school nacharam

DELHI PUBLIC SCHOOL

NACHARAM

MOCK TEST

CLASS XII

COMMERCE STREAM

2021-2022

Delhi Public School, Nacharam

2021-2022

Class XII - ACCOUNTANCY

Mock Question Paper (2)

Time Allowed: 90 Minutes Max. Marks: 40

General Instructions:

Read the following instructions very carefully and strictly follow them:

1. This question paper comprises two PARTS – I and II. There are 55 question in the question

paper

2. Part I and II both are compulsory for all candidates

3. Part I, contains three Sections – A, B and C. There is an internal choice provided in each Section

i. Part I – Section A has questions from 1 to 18. Attempt any fifteen (15) questions

ii. Part I – Section B has question from 19 to 36. Attempt any fifteen (15) questions

iii. Part I – Section C has question from 37 to 41. Attempt any four (4) questions

4. Part II, contains two Sections – A and B. There is an internal choice provided in each Section

i. Part II – Section A has questions from 42 to 48. Attempt any five (5) questions

ii. Part II – Section B has question from 49 to 55. Attempt any six (6) questions

5. All question carry equal marks. There is no negative marking

6. Specific Instructions related to each Part and subdivisions (Section) is mentioned clearly before

the questions. Candidates should read them thoroughly and attempt accordingly.

Part – I

Section – A

Instructions:

From question number 1 to 18, attempt any 15 questions.

1. Any change in the relationship of existing partners which results in an end of the

existing agreement and enforces making of new agreement is called:

A. Revaluation of partnership

B. Reconstitution of partnership

C. Realization of partnership

D. None of the above

2. Reserves and accumulated profits are transferred to partners' capital accounts at the

time of reconstitution in:

A. Old p r o f i t -sharing r a t i o

B. Sacrificing Ratio

C. Gaining ratio

D. New profit-sharing ratio

3. In which of the following case, revaluation account is debited?

A. Increase in value of asset

B. Decrease in value of asset

C. Decrease in value of liability

D. No change in value of assets

4. Sacrificing ratio is:

A. New ratio minus old ratio

B. Old ratio minus new ratio

C. New ratio minus gaining ratio

D. Old ratio minus gaining ratio

5. A, and B are partners in a firm sharing profits in the ratio of 3: 2. They decided to

share future profits equally. Calculate A’s gain or sacrifice:

A. 2/10 (sacrifice)

B. 5/10 (gain)

C. 1/10 (Gain)

D. 1/10 (sacrifice)

6. R, S and T sharing profits and losses in the ratio of 1:2:3, decide to share future profit

and losses equally. They also decided to adjust the following accumulated profits,

losses and reserves without affecting their book figures, by passing a single adjustment

entry:

General Reserve 40000

Profit and Loss A/c (Credit Balance) 30000

Share Issue expenses 10000

Then necessary adjustment entry will be:

A. Dr. R and Cr. T by Rs. 10,000

B. Dr. T and Cr. R by Rs. 10,000

C. Dr. S and Cr. R by Rs. 10,000

D. Dr. R and Cr. S by Rs. 10,000

7. U, V and W; are partners sharing profits in the ratio of 2:3:5, decide to share future profit

and losses in the ratio of 5:3:2. They also to record the effect of the following revaluations

and reassessments without affecting the book values of assets and liabilities by passing a

single adjustment entry:

Book Value Revised Value

(Rs.) (Rs.)

Land and Building 3,00,000 3,50,000

Furniture 1,50,000 1,00,000

Sundry Creditors 60,000 20,000

Outstanding Salaries 10,000 15,000

The single adjustment entry will be:

A. Dr. W and Cr. U by Rs. 10,500

B. Dr. U and Cr. W by Rs. 10 , 500

C. Dr. V and Cr. U by Rs. 10,500

D. Dr. W and Cr. V by Rs. 10,500

8. A and B are partners sharing profits and losses in the ratio of 3:2 having capitals of

Rs.15,00,000 and Rs.10,00,000 respectively as on 31.03.2021. Drawings during the year

were Rs.30,000 and Rs.20,000 respectively. Capital includes, capital introduced on

31.03.2021 are A Rs.3,00,000 and B Rs.2,00,000. If the rate of interest on capital is

7% p.a. then the amount of interest of capital of A and B are:

A. A : Rs.86,100 B : Rs.57,500

B. A : Rs.84,000 B : Rs.56,000

C. A : Rs.1,05,000 B : Rs.70,000

D. A : Rs.2,100 B : Rs.1,400

9. Which section of Indian Partnership Act, 1932 defines partnership as "Partnership is the

relation between persons who have agreed to share the profits of a business carried by all

or any of them acting for all"

A. section 4

B. section 2

C. section 40

D. section 42

10. Pick the odd one out

A. Rent to a partner

B. Manager’s commission

C. Interest to a partner’s loan

D. Interest on partner’s capital

11. A manager gets 5% commission on net profit after charging such commission, gross profit

Rs.5,80,000 and indirect expenses excluding his commission are Rs.1,60,000; commission is

A. Rs.20,000

B. Rs. 21,000

C. Rs. 15,000

D. Rs 22,000

12. Feature of a partnership firm:

A. At least two persons competent to contract.

B. Agreement either written or oral.

C. Business carried on by all or any of the Partners acting for all.

D. All of these

13. X and Y are partners sharing profits in the ratio of 1:1. They admit Z for 1/5th share who

contributed Rs.25,000 for his share of goodwill. The Firms’ total value of goodwill will be

A. Rs.2,50,000

B. Rs.50,000

C. Rs.1,00,000

D. Rs.1,25,000

14. Profit / Loss on Revaluation in case of admission of a new partner is borne by:

A. Old Partners

B. New Partners

C. All Partners

D. Any Two Partners

15. If Capital Accounts are maintained following Fixed capital Accounts method, balance

of Revaluation Account is transferred to:

A. Partner’s Fixed Capital Account

B. Partner’s Current Account

C. Profit & Loss Account

D. Balance Sheet

16. P & Q are partners sharing profits in the ratio of 1:1. Mr. R is admitted in the firm for 1/3rd

share of profit with the guaranteed annual profit of Rs.18,000 p.a. The firm’s total profit

for the year is Rs.42,000. If P stood as guarantor of guaranteed profit to R, how much profit

would be given to P:

A. Rs.20,000

B. Rs.15,000

C. Rs.10,000

D. Rs.18,000

17. Investment Fluctuation Reserve is a reserve created out of profits to meet the in

the ____ of investments.

A. Rise, book

B. Fall, Book

C. Rise, market

D. Fall, market

18. A and B are partners sharing profits in the ratio of 7 : 3. C is admitted as a partner for 3/7th

share in profit. If the new profit sharing ratio of the partners is 14 : 6 : 5, sacrificing ratio will

be:

A. 4:5

B. 3:7

C. 7:3

D. 2:1

Part – I

Section – B

Instructions:


19. The portion of authorized capital which can be called up only on the liquidation of the

company:

A. Authorised capital

B. Issued capital

C. Called-up capital

D. Reserve capital

20. When the shares are issued for consideration other than cash which account will be

debited

A. Securities Premium

B. Capital Reserve A/c

C. Vendor A/c

D. Share Capital A/c

21. X ltd. Forfeited 1,000 shares of Rs. 10 each for the non-payment of final call of Rs. 2. The

account will be debited for called up price of a share at the time of forfeiture of shares:

A. Share Forfeiture A/c

B. Share Capital A/c

C. Share Final Call A/c

D. None of these

22. The amount earlier written off as bad debt now received is credited to on admission

of a partner.

A. Partners’ capital a/c

B. Revaluation a/c

C. Realisation a/c

D. Debtors a/c

20 Sacrificing ratio is calculated because:

A. Profit shown by Revaluation Account can be credited to sacrificing partners

B. Goodwill brought in by the incoming partner can be credited to the new partner

C. Goodwill brought in by the incoming partner can be credited to the sacrificing partners

D. Both a and c

21 Given below are two statements, one labelled as Assertion (A) and the other labelled as

Reason (R). You are to examine these two statements carefully and select the answers using

the codes given below:

Assertion (A): At the time of admission of a partner, partnership is dissolved and not the

firm

Reason (R): In case of reconstitution, existing agreement comes to an end and a new one

comes into existence.

A. Both (A) and (R) are true and (R) is a correct explanation of (A)

B. Both (A) and (R) are true, but (R) is not the correct explanation of (A)

C. Both (A) and (R) are false

D. (A) is false, but (R) is true

22 Given below are two statements, one labelled as Assertion (A) and the other labelled as

Reason (R). You are to examine these two statements carefully and select the answers using

the codes given below:

Assertion (A): It is necessary to ascertain new profit sharing ratio for old partners when a

new partner is admitted.

Reason (R): New partner acquires his share from old partners which reduces old partner's

share in profits.





23. Which of the following capital is not shown in the company’s Balance Sheet?

A. Authorised capital

B. Issued & subscribed capital

C. Called-up & paid up-capital

D. Reserve capital

24. As per the companies Act amount received as premium on securities cannot be utilized for: -

A. Issuing fully paid bonus shares to the members

B. Writing off preliminary expenses

C. Purchase of fixed assets

D. Buy back of its own shares

25. A company must receive minimum subscription of of shares before it allots the share.

A. 90%

B. 70%

C. 80%

D. 95%

26. Affle Ltd purchase the running business of KPIT Ltd consisting total asset of Rs. 10,00,000

liabilities of Rs. 2,00,000. Affle Ltd paid Rs. 2,00,000 immediately in cash and balance by

issuing 7,000 share of Rs. 100 each at a premium of Rs. 20 per share. The goodwill A/c will

be debited by Rs. _.

A. Rs. 2,30,000

B. Rs. 2,50,000

C. Rs. 2,60,000

D. Rs. 2,40,000

27. Water ltd. issued 8,000 shares of Rs.10 each at par. Amount called up Rs.4 on

application, Rs.3 on allotment and Rs.3 on first and final call. Rohit, a shareholder holding

500 shares did not pay allotment money. The amount received on allotment will be

Rs. .

A. Rs. 21,500

B. Rs. 20,000

C. Rs. 22,500

D. Rs. 19,500

28. Banta ltd. issued equity shares of Rs.10 each at 10% premium; all shares were issued and

subscribed. Amount called up: on application Rs.3 each, on allotment Rs.3 (including

premium), Rs.3 on first call and Rs. 2 on final call. Mr. A, a holder of 200 shares paid entire

money on allotment. At the time of receiving the money “Calls in Advance” A/c will be

credited with Rs. _

A. Rs. 1,000

B. Rs. 1,100

C. Rs. 1,900

D. Rs. 1,800

29. Alpha ltd. forfeited 200 equity shares of Rs. 10 each on which Rs. 6 was paid (including

Rs. 1 premium). On reissue, the company can allow Rs. as discount.

A. Rs. 5 each

B. Rs. 10 each

C. Rs. 6 each

D. Rs. 4 each

30. A company issued 10,000 shares of Rs.10 each at par for which Application were received

for 50,000 shares. Amount called up: on application Rs.4 each, on allotment Rs.3 and final

call remaining amount. Shares were allotted on pro-rata basis and excess money w a s

refunded after utilizing for allotment and final- call. The Bank A/c will be credited with

Rs. .

A. Rs. 4,00,000

B. Rs. 1,00,000

C. Rs. 3,00,000

D. Rs. 5,00,000

31. When the shares are reissued at a price more that face value it is known as .

A. Forfeiture

B. Discount

C. Premium

D. Reserve Capital

32. Given below are two statements, one labelled as Assertion (A) and the other labelled as

Reason (R):

Assertion (A): In case of shares issued on Pro-rate basis, excess money received at the time

of application can be utilized till allotment only.

Reason (R): Company has to pay interest on calls in advance @12% p.a. for amount

adjusted towards calls (if any). In the context of the above statements, which of the

following is correct?





33. Excess balance amount at share forfeiture account will be transferred to ___ account.

A. Forfeiture

B. Capital Reserve

C. Premium

D. Reserve Capital

34. Revenue from Operations Rs.9,00,000, Gross Profit 25% on cost, Operating Expenses

Rs.90,000, Operating Ratio will be?

A. 100%

B. 50%

C. 90%

D. 110%

35. If Shakuni Ltd. has a Proprietary Ratio of 30%. To maintain this ratio at 40%, management

may .

A. Increase in Equity

B. Reduce Debt

C. Increase in Current Assets

D. Either Increase Equity or Reduce Debt

36. Which of the following is Quick Asset?

A. Inventory

B. Prepaid Expenses

C. Long Term Investments

D. Marketable Securities

Part – I

Section – C

Instructions:


Question No.’s 37 and 38 are based on the hypothetical situation given below.

A and B started automobile business in the name of Saavan Ltd. They are partners sharing

profits and losses in the ratio of 3 : 2. Their capitals are Rs. 30,000 and Rs. 20,000 respectively.

On 31st March 2021, there is balance of General Reserve of Rs. 10,000. On 1st April, 2021 C

was admitted for 1/3rd share who also brings Rs. 6,000 as share of goodwill. On the date of his

admission, furniture was reduced by Rs. 1,000, Provision for Doubtful Debts increased by Rs.

1,000 and there is an appreciation of Rs. 4,000 in stocks.

37. Capitals of A and B after all adjustments will be:

A. 50,000

B. 60,000

C. 62,000

D. 68,000

38. Profit on revaluation in the said case will be:

A. 4000

B. 3000

C. 2000

D. 5000

Question No.’s 39, 40 and 41 are based on the hypothetical situation given below.

Ajab Enterprises is a partnership business with Aja, Aba and Baja as partners engaged in

production and sales of electrical items and equipment. Their capital contributions were

Rs.50,00,000, Rs.50,00,000 and Rs.80,00,000 respectively with the profit the sharing ratio of

5:5:8. As they are now looking forward to expanding their business, it was decided that they

would bring in sufficient cash to double their respective capitals. This was duly followed by

Aja and Aba but due to unavoidable reasons Baja could not do so and ultimately it was agreed

that to bridge the shortfall in the required capital a new partner should be admitted who would

bring in the amount that Baja could not bring and that the new partner would get share of

profits equal to half of Baja’s share which would be sacrificed by Baja only. Consequent

to this agreement Jazz was admitted and he brought in the required capital and Rs.30,00,000

as premium for goodwill.

Based on the above information you are required to answer the following questions.

39. What will be the new profit-sharing ratio of Aja, Aba, Baja and Jazz?

A. 1:1:1:1

B. 5:5:8:8

C. 5:5:4:4

D. 5:5:5:4

40. What is the amount of capital brought in by the new partner Jazz?

A. Rs.50,00,000

B. Rs.80,00,000

C. Rs.40,00,000

D. Rs.30,00,000

41. What is the value of the goodwill of the firm?

A. Rs.1,35,00,000

B. Rs.30,00,000

C. Rs.1,50,00,000

D. Cannot be determined from the given data

Part – II

Section – A

Instructions:


42. Amount of discount given at the time of reissue of shares should be debited to:

A. Shares Capital

B. Discount on Shares

C. Share Forfeiture A/c

D. Calls-In-Areas A/c

43. A company Forfeited 2,000 shares of Rs 10 each issued at 20% premium to be paid at the

time of allotment on which Rs 8 is called up. Company did not receive Rs 4 on Allotment

including premium and Rs 2 on First call. What will be the amount Debited to share capital

account:

A. Rs. 20,000

B. Rs. 16,000

C. Rs. 24,000

D. Rs. 18,000

44. Which of the following is not a long-term borrowing of a company?

A. Debentures.

B. Term loans.

C. Loans repayable on demand from banks.

D. Long-term finance lease obligations.

45. How the following liabilities are to be shown on the liability side of the balance sheet in

the order of permanence?

1. Current liabilities and provisions

2. Secured loans

3. Share capital

4. Unsecured loans

5. Reserves and surplus

A. 3, 5, 2 , 4 , 1

B. 3 , 2 , 1 , 4 , 5

C. 1 , 4 , 2 , 5 , 3

D. 5, 4, 3, 2, 1

46. Afghan Ltd. has Operating profit Ratio of 20%. To maintain this ratio at 25%,

management may__

A. Reduce cost of revenue from operations.

B. Increase selling price of Stock-in-trade.

C. Increase selling price of Stock-in-trade & to reduce Cost of Revenue from Operations.

D. All of the above.

47. Current Assets (at cost) Rs.24,00,000, Credit Sales Rs.68,00,000, Cash Sales

Rs.6,00,000, Sales Return Rs.2,00,000. What can be Current Assets Turnover Ratio?

A. 2 times

B. 3 times

C. 4 times

D. 10 times

48. Which Ratio is not a part of Solvency Ratio?

A. Proprietary Ratio

B. Current Ratio

C. Debt- Equity Ratio

D. Total Assets – Debt Ratio

Part – II

Section – B

Instructions:


49. If Revenue from Operations Rs. 3,20,000 & Gross Profit is Rs. 80,000. Gross Profit Ratio

will be _.

A. 40%

B. 25 %

C. 90%

D. 50%

50. For calculating Quick Assets, & are excluded from Current

Assets.

A. Fixed Assets & Inventory

B. Debtors & Creditors

C. Inventory & Prepaid Expenses

D. All of the above

51. Tata Ltd. made the transaction involving a decrease in Debt- Equity Ratio by 25% & increase

in Current Ratio from 2:1 to 3:1. What might be the reason?

A. Issue of Debentures against the purchase of Fixed Assets

B. Issue of Debentures for Cash

C. Redemption of Preference shares for cash

D. Issue of Equity shares for cash

52. Champion Ltd. has given following data for calculating Current Ratio: Current

Assets Rs.20,00,000, Inventories Rs.10,00,000, Working Capital Rs.12,00,000.

A. 3.5 : 1

B. 2.5 : 1

C. 1 : 1

D. 1 : 2

53. The data of Bemishal Ltd. is as follows: Fixed Assets Rs.12,00,000, Accumulated

Depreciation Rs.2,00,000, Trade Investments Rs.1,00,000, Current Assets Rs.4,40,000,

Current Liabilities Rs.3,40,000. Find out Capital Employed.

A. Rs.14,00,000

B. Rs.12,00,000

C. Rs.20,00,000

D. Not any one from the above

54. Current Ratio of Bhasmang Ltd. is 2:1. On the sale of fixed asset (Book value Rs.80,000) for

Rs.72, 000 on credit, state whether the Current Ratio will be?

A. Decline

B. Not Change

C. Improve

D. Can’t say

55. If Current Ratio of Nagin Ltd. is 2.5:1 and its Current Liabilities are Rs.800,000.

Working Capital will be?

A. Rs.12,00,000

B. Rs.6,00,000

C. Rs.20,00,000

D. Rs.11,11,111

Key

1. B

2. A

3. B

4. B

5. D

6. A

7. B

8. B

9. A

10. D

11. A

12. D

13. D

14. A

15. B

16. C

17. D

18. C

19. D

20. C

21. A

22. A

23. D

24. C

25. A

26. D

27. C

28. A

29. A

30. B

31. C

32. D

33. B

34. C

35. A

36. D

37. D

38. C

39. C

40. B

41. A

42. C

43. B

44. C

45. A

46. D

47. B

48. B

49. B

50. C

51. D

52. B

53. B

54. A

55. A

Page | 1

Sample Question Paper 2021-22

Term 1

Subject: Business Studies

Time: 90 minutes Max. Marks: 40

General instructions:

1. The Question Paper contains 3 sections.

2. Section A has 24 questions. Attempt any 20 questions.

3. Section B has 24 questions. Attempt any 20 questions.

4. Section C has 12 questions. Attempt any 10 questions.

5. All questions carry equal marks.

6. There is NO negative marking.

Section - A

1. “What distinguishes a successful manager from a less successful one is the ability to

put the principles into practice.” Which aspect of the nature of management is

highlighted in the above statement?

a) Management as a science

b) Management as an art

c) Management as a profession

d) Management is an intangible force.

2. ____________ provides a rational approach for setting objectives and developing

appropriate courses of action for achieving predetermined objectives.

(a) Directing

(b) Staffing

(c) Planning

(d) Controlling

Page | 2

3. Marketing mix is the set of _____________________ that the firm uses to pursue its

marketing objectives in the target market.

(a) Production tools

(b) Promotional tools

(c) Marketing tools

(d) Selling tools

4.

Which level of management is responsible for the welfare and survival of the

organisation?

(a) Top level of management

(b) Middle level of management

(c) Supervisory level

(d) Both (b) and (c)

5. Name the principle of management given by Fayol which when applied would mean

that the workers and management both honour their commitments without any

prejudice towards one another.

(a) Discipline

(b) Mental Revolution

(c) Remuneration of employees

(d) Scalar chain

6. A brand or part of the brand that is given legal protection is called _____________

(a) Brand Mark

(b) Trademark

(c) Brand

(d) Brand name

7. Identify the dimension of the characteristic of management- “it is multidimensional”,

which specifies that the task of management is to make the strengths of human

resources effective and their weaknesses irrelevant towards achieving the

organisation's objectives.

(a) Management of work

(b) Management of people

(c) Management of operations

(d) Management of goals

Page | 3

8.

___________________ involves a variety of programmes designed to promote and

protect a company’s image and its individual products in the eyes of the public.

(a) Advertising

(b) Personal selling

(c) Publicity

(d) Public relations

9.

Which type of organisational structure will you suggest for a firm which has

diversified activities and operations requiring a high degree of specialisation ?

( a) Centralised structure

(b) Decentralised Structure

(c) Divisional structure

(d) Functional structure

10.

“Changes or events cannot be eliminated but they can be anticipated and managerial

responses to them can be developed.” is suggested by the following importance of

planning:

(a) Planning facilitates decision making

(b) Planning promotes innovative ideas

(c) Planning provides direction

(d) Planning reduces the risks of uncertainty.

11.

“Grouping similar nature jobs into larger units called departments” is the step in the

process of one of the functions of management. Identify the function of management.

(a) Planning

(b) Organising

(c) Directing

(d) Staffing

12

The Statement “Planning is a primary function”, suggests that……

(a) Planning precedes other functions

(b) Planning requires logical and systematic thinking

(c) Plan is framed, it is implemented, and is followed by another plan, and so on

(d) Planning is required at all levels of management as well as in all departments of

the organisation.

Page | 4

13

A major decision area under one of the functions of marketing is the decision

regarding marketing intermediaries to be used. Name the function.

(a) Physical Distribution

(b) Gathering and analysing market information

(c) Promotion

(d)Transportation

14.

“The nature of the relationship of our country with foreign countries”, is a major

element of which of the following components of the Business Environment?

(a) Social Environment

(b) Legal Environment

(c) Political Environment

(d) Economic Environment

15.

Which of the following statements is incorrect?

(a) Marketing is a social process

(b) Focus of the marketing activities is on customer needs

(c) Marketing is merely a post production activity.

(d) Marketing mix is a wider term than product mix.

16.

Planning is closely connected with _____________ and ________________

(a) Responsibility and accountability

(b) Delegation and decentralization

(c) Stability and security

(d) Creativity and innovation

17.

_______________ is an important function of marketing which is important not only

for protection of the product but also serves as a promotional tool.

(a) Grading

(b) Labeling

(c) Packaging

(d) Branding

Page | 5

18.

As part of regulations to be followed by advertisers, the advertisement for a new

brand of baby food for infants provides important information for potential buyers

that it is “Not recommended for infants under the age of four months”. Which

dimension of the business environment is highlighted in the above statement?

(a) Social Environment

(b) Legal Environment

(c) Political Environment

(d) Economic Environment

19. The principle of management given by Fayol which aims at preventing overlapping

of activities is:

(a) Division of work

(b) Unity of Command

(c) Unity of Direction

(d) Order

20.

___________________ensures that the subordinate performs tasks on behalf of the

manager thereby reducing his workload and providing him with more time to

concentrate on important matters.

(a) Decentralization

(b) Delegation of authority

(c) Authority

(d) Accountability

21. ____________ is a process of classification of products into different groups on the

basis of some important characteristics such as quality, size, etc.

(a) Standardization

(b) Grading

(c) Product Development

(d) Selling

Page | 6

22.

The sum total of all individuals, institutions and other forces that are outside the

control of a business enterprise but that may affect its performance is known

as________________

(a) Business environment

(b) Social environment

(c) Political environment

(d) Economic environment.

23

Name the concept that refers to the number of subordinates that can be effectively

managed by a superior and determines the number of levels of management in the

organisation.

(a) Organisation structure

(b) Span of management

(c) Hierarchy of authority

(d) Delegation of Authority

24

Taylor believed that there was only one best method to maximise efficiency. This

method can be developed through study and analysis. Identify the principle of

Scientific management being discussed above:

a) Harmony not discord

b) Science not rule of thumb

c) Development of each and every person to his or her greatest efficiency and

prosperity

d) Cooperation not individualism

Section -B

25. India has launched its most advanced Geo-imaging satellite which will allow better

monitoring of the subcontinent, including its borders with neighbouring countries, by

imaging the country 4-5 times a day. The satellite is capable of near real time

monitoring of floods and cyclones. The factor constituting the Business Environment

being discussed above is:

(a) Social environment

(b) Economic environment

(c) Technological environment

(d) Political environment

Page | 7

26.

Which step in the process of planning will precede the step in which the manager is

required to make certain assumptions about the future, which are the base material

upon which the plans are drawn.

(a) Implementing the plan

(b) Identifying alternative courses of action

(c) Setting objectives

(d) Selecting an alternative.

27 “Availability and affordability of the product were considered to be the key to the

success of a firm.” Identify the concept of marketing management highlighted by this

statement.

(a) Production concept

(b) Product Concept

(c) Societal concept

(d) Marketing Concept

28. Aiming to revive Jammu and Kashmir’s attraction as a top location for film shooting

the J&K film policy, 2021 offers a host of incentives to the filmmakers, such as

subsidies and low long term interest rates, for films with patriotic and certain other

themes shot in J&K, for giving work opportunities to local artistes, etc. This will

have an impact on business enterprises in the state. Which component of business

environment is highlighted above:

(a) Specific and general forces

(b) Technological environment

(c) Economic environment

(d) Totality of external forces

29

The Topper group is looking to make a foray into manufacturing of semiconductors

and it has set up a business to seize the business opportunity and add to its prospects

in the long run. The company has already pivoted into a number of new projects like

electronics, 5G network equipment, as well as semiconductors. Which economic

objective of management does the business seek to fulfill?:

(a) Survival

(b) Growth

(c) Profit

(d) Efficiency

Page | 8

30.

Product cost sets the lower limits of the price, the utility provided by the product and

the intensity of demand of the buyers sets the upper limit. So, in case of inelastic

demand, total revenue ………………when price increases

(a) Rises

(b) Falls

(c) Constant

(d) Both (a) and (b)

31. “A manager in a conscious manner has to ensure that even where members of a

department willingly cooperate, coordination gives direction to the willing spirit.”

The characteristic of coordination being highlighted above is :

(a) Coordination is the responsibility of all managers.

(b) Coordination is a deliberate function.

(c) Coordination integrates group efforts.

(d) Coordination is a continuous process

32

For the following two statements choose the correct option:

Statement I: Accountability can be delegated

Statement II: Responsibility can be delegated completely

Choose the correct option from the options given below:

(a) Statement I is correct and II is wrong

(b) Statement II is correct and I is wrong

(c) Both the statements are correct

(d) Both the statements are incorrect

Page | 9

33 The CEO of Radhe Cycles Pvt Ltd. Mr. Kumar wants to get maximum output from

the employees at a competitive cost. On the other hand Ramakaant, an employee of

the company wants to get the maximum salary while working the least. The Principle

of management given by Fayol being violated by Ramakaant is ----------------.

(a) Remuneration

(b) Equity

(c) Discipline

(d) Subordination of individual interest to general interest.

34

Arrange the following steps in the process of organising in the correct sequence:

(a) Assignment of duties

(b) Departmentalisation

(c) Identification and division of work

(d) Establishing reporting relationship

Choose the correct option:

(a) (a ) ; (b) ; (d); (c)

(b) (c ) ; (b) ; (a); (d)

(c) (c ) ; (b) ; (d); (a)

(d) (b) ; (c) ; (a); (d)

35 The production department at Karishmaa Ltd, a firm manufacturing readymade

garments for men has an objective to increase production by 10% but the Sales

department does not approve of the increase in production, till changes are brought

about in the product to incorporate latest fashion. These kinds of conflicts bring to

light the following importance of the force that can help to accomplish the linking of

activities of various departments:

(a) Growth in size

(b) Functional differentiation.

(c) Specialization

(d) Efficiency

Page | 10

36 Planning requires logical and systematic thinking rather than guess work. The feature

of planning being referred to in the above statement is:

(a) Planning is a continuous process

(b) Planning is futuristic

(c) Planning is pervasive

(d) Planning is a mental exercise

37 Silico Ltd. has appointed the former Consulting executive of Shri Shakti Ltd. Rajan

Bahl as its Vice President. What will be his basic task?

(a) To integrate diverse elements and coordinate activities of different departments.

(b) To carry out plans formulated by top managers.

(c) To oversee the efforts of the workforce.

(d) Help to maintain quality of output.

38 The marketing management philosophy which is based on the premise that any

activity which satisfies human needs but does not pay attention to the ethical and

ecological aspects of marketing cannot be justified is known as:

(a) Marketing concept

(b) Societal marketing concept

(c) Production concept

(d) Product concept

39 Ravi joined a marketing firm as a Sales manager. On his first day in the company,

during the orientation programme, the CEO of the company told Ravi that he will

have to simultaneously perform the functions of management (planning, organising,

staffing, directing, controlling) all the time. Which characteristic of management was

the CEO referring to?

(a) Management is a continuous process

(b) Management is all pervasive

(c) Management is multidimensional

(d) Management is goal oriented

Page | 11

40 Unlike professions such as medicine or law which require a practising doctor or

lawyer to possess valid degrees, nowhere in the world is it mandatory for a manager

to possess any such professional degree. Identify the characteristic of the profession

being discussed above which is not being strictly met by management.

(a) Well defined body of knowledge

(b) Restricted Entry

(c) Professional Association

(d) Ethical code of conduct

41 “Following a pre-decided plan, when circumstances have changed, may not turn out

to be in the organisation's interest.” The limitation of planning being referred to in the

above statement is-------------------------.

(a) Planning does not guarantee success

(b) Planning may not work in a dynamic environment

(c) Planning leads to rigidity

(d) Planning is a time consuming process.

42 The technique of Scientific Management given by Taylor, which aims to establish

interchangeability of manufactured parts and products is ...……………………..

(a) Method Study

(b) Motion study

(c) Standardization

(d) Differential Piece wage system.

43

For the following two statements choose the correct option:

Statement I: Advertising is an impersonal form of communication

Statement II: Advertising lacks direct feedback

Choose the correct option from the options given below:

(a) Statement I is correct and II is wrong

(b) Statement II is correct and I is wrong

(c) Both the statements are correct

(d) Both the statements are incorrect

Page | 12

44

KTX Group is rolling out an initiative to help create wealth for its employees through

the implementation of Employee Stock option. Through motivation and leadership

the management will help individuals to develop team spirit, cooperation and

commitment to the success of the group. The following importance of management is

highlighted above:

(a) Management helps in achieving personal objectives

(b) Management helps in the development of society

(c) Management creates a dynamic organisation

(d) Management increases efficiency

45 If there is a plan to increase production then more labour, more machinery will be

required. This step in the process of planning will involve organising for labour and

purchase of machinery. Identify the step in the planning process being discussed

above.

(a)Identifying alternative courses of action

(b) Setting objectives

© Selecting an alternative

(d) Implementing the plan

46 Taylor proposed eight specialists from whom each worker will have to take orders

from as part of the technique of Functional Foremanship specified by him. Those

with technical, mastery, intelligence and grit may be given-----------------------------

work. Those with energy and good health may be assigned ---------------- work.

(a) Planning, Execution

(b) Execution, Planning

(c) Production, Planning

(d) Implementation, Production

47 A person feeling hungry may get food by offering to give money or some other

product or service in return to someone who is willing to accept the same for food.

The important feature of marketing illustrated above is:

(a) Exchange mechanism

(b) Customer value

(c) Creating a market offering

(d) Needs and wants

Page | 13

48 Assertion :( A) Planning is futuristic

Reason: (R ) Planning is concerned with the future which is certain and does not

require forecast

( a) Both (A) and ( R ) are correct

( b) (A) is correct ( R) is incorrect

( c ) Both (A) and ( R) are correct, and R is the correct explanation of R

( d) Both (A) and ( R) are correct, and R is not the correct explanation of R

Section C

Read the following text and answer question number 49-54 on the basis of the

same.

'Saarthi', the name has been associated with the manufacturing and sale of Fashion

products since 1960, when Kapil Saarthi opened his first retail fashion clothing outlet

in Ahmedabad. Sarthi Cosmetics was incorporated in India in 1940, and became a

member of the S & M family of companies in 1959. Sarthi Perfumes began

operations in Gujarat in an existing administrative S&M facility in 1985. An

important difference between S&M and most other companies is that instead of

operating as one large corporation it operates as 180 smaller companies each focused

on a specific product and area, implying selective dispersal of authority, recognising

the decision makers need four autonomy, as decision making authority is pushed

down the chain of command. It enables the company to maintain short lines of

communication with customers and employees, and accelerate the development of

talent.

49 Identify the philosophy that is being followed by S&M through which it is dividing

the decision making responsibilities among hierarchical levels.

(a) Delegation of authority

(b) Decentralization of authority;

(c) Division of work

(d) Span of management.

Page | 14

50. ‘Why is there, need to apply the philosophy being followed by S&M, with caution?

(a) As it can cause a delay in communication

(b) As it can cause disintegration of the organisation

(c) As it can increase the workload of the top management

(d) As it can reduce the chances of growth of the firm.

51 The application of the philosophy discussed above can foster a sense of competition

amongst the departments, which in turn will help the firm in the following manner:

(a) Facilitates growth

(b) Better control

(c) Relief to top management

(d) Quick decision making.

52 Quote the line from above which highlights the importance of the philosophy towards

providing management education to employees.

(a) “Maintain short lines of communication

(b) ‘Accelerate the development of talent’

(c) ‘selective dispersal of authority;

(d) ‘Recognises decision makers need for autonomy’

53 As “The decision making authority is pushed down the chain of command” at S&M

enterprises, it provides the benefit of quick decision making to the organisation

because:

(a) There is no requirement for approval from many levels

(b) Organisation is able to generate more returns

(c) There are innovative performance systems

(d) It's a means of management education

54 The philosophy being followed by S&M is not followed by most other companies.

This tells us that the philosophy is :

(a) Optional

(b) Compulsory

(c) Limited to superior and his subordinate

(d) Merely done to lessen the burden of the manager

Page | 15

55 Mohammad Kanjiwal, a beekeeper since April 2021 is now part of the growing tribe

of at least 50 urban dwellers across Maharashtra raising bees and harvesting honey in

their balconies, rooftops and back gardens. As he had been focussed on eating right

the thought of domesticating honey bees to promote healthy consumption habits and

seeing honey being cultivated right before his eyes was mesmerising for him. Identify

the factor constituting the general environment being discussed above.

(a) Economic environment

(b) Social environment

(c) Technological environment

(d) Political environment

56

Zolo, a marketer of cars having 40 % of the current market share of the country aims

at increasing the market share to 70% in next few years. For achieving this objective

the manager of the company specified the action programme covering various

aspects. Identify the function of marketing discussed above:

(a) Customer support services

(b) Gathering and Analysing market information

(c ) Product designing and development

(d) Marketing Planning

57 Style and Fit, a footwear manufacturing company has decided to offer 50 % off on all

its products due to the fall in demand of its products as more efficient substitutes have

been introduced in the market. Identify the pricing objective included by the firm

which has made the firm resort to discounting its product.

(a) Obtaining market share leadership

(b) Surviving in the competitive market

(c) Attaining product quality leadership

(d) Protect the interest of public

Page | 16

58

A sanitizer manufacturing company wants to become a market leader. For this

purpose the manager follows an activity with certain logical steps. The first step

suggested by him is to increase profits by at least 30% in the next quarter. What will

be the last step of the activity being followed by the manager.

(a) Follow-up action

(b) Identifying alternative course of action

(c) Setting objectives

(d) Evaluating alternative courses of action

59 In Shalleen Pvt Ltd. there is one head Shalleen who has two lines of authority under

her. One line consists of Sara-Rajat-Abhishek-Ismail-Chris. Another line of authority

under Shalleen is Lata-Rupa-Geet-Hussain-Preeti. According to a Principle of

Management given by Fayol, If Ismail has to communicate with Hussain who is at

the same level of authority then illustrate the route he will have to traverse.

(a) Ismail-Abhishek-Rajat-Sara-Shalleen-Lata-Rupa-Geet-Hussain

(b) Hussain-Geet-Rupa-Lata-Shalleen-Sara-Rajat-Abhishek-Ismail

(c) Ismail-Chris-Shalleen-Preeti-Hussain

(d) Ismail-Abhishek-Rajat-Sara-Lata-Rupa-Geet-Hussain

60

According to the technique of Scientific management “Differential Piece Wage

system” How much more will a worker making 60 units earn as compared to a

worker making 49 units? If the standard output per day is 50 units and those who

make standard output or more than standard get Rs. 75 per unit and those below get

Rs. 65 per unit.

(a) Rs. 4500

(b) Rs. 3185

(c) Rs. 1315

(d) Rs. 3250

Q.NO. MARKING SCHEME

CLASS XII (2021-22)

TERM 1

SUBJECT: BUSINESS STUDIES

1. (b) 2. (c) 3. (c) 4. (a) 5. (a) 6. (b) 7. (b) 8. (d) 9. (d)

10. (d) 11. (b) 12. (a) 13. (a) 14. (c) 15. (c) 16. (d) 17. (c) 18. (b) 19. (C) 20. (b) 21. (b) 22. (a) 23. (b) 24. (b) 25. (c) 26. (c) 27. (a) 28. (c) 29. (b) 30. (a) 31. (b) 32. (d) 33. (d) 34 (b) 35. (b) 36. (d) 37. (a) 38. (b) 39. (a) 40. (b) 41. (c) 42. (c) 43. (c) 44. (a) 45. (d)

46. (a) 47. (a) 48. (b) 49. (b) 50. (b) 51. (a) 52. (b) 53. (a) 54. (a) 55. (b) 56. (d) 57. (b) 58. (a) 59. (a) 60. (c)

DELHI PUBLIC SCHOOL SECUNDERABAD

NACHARAM/ MAHENDRA HILLS

Term1 – Mock Test

Maximum Marks: 40 class XII Time Allowed: 90 Minutes

INSTRUCTIONS

1.THIS QUESTION PAPER CONTAINS THREE SECTIONS A,B,C

2.SECTION A HAS 20 MCQS ATTMEPT ANY 16 OUT OF 20

3. SECTION B HAS 20 MCQS ATTMEPT ANY 16 OUT OF 20

4. SECTION C HAS 10 MCQS ATTMEPT ANY 8 OUT OF 10.

SECTION-A

1.The relation R in the sets A={1,2,3,4} given by

R={(1,2)(2,2)(1,1)(4,4)(1,3)(3,3)(3,2} is

A) Reflexive and symmetric but not transitive

B) Reflexive and transitive but not symmetric.

C) Transitive and symmetric but not reflexive

D)an equivalence relation

2.The function f: R→ � defined by f(x)= 2� + 2|�| is

A) one-one and onto

B)many one and onto

c) one oneandinto

D)many one and into

3.The value of the expression tan (��

�), where x=

√�

� is

A) ∞ �)1�)− 1�)none of these

4.The value of 2cos-1(-1/2)+ 2sin-1(-1/2)-cos-1(-1) is

A) 0 B) �

� C) 3

�

� D) −

�

�

5. If A is a skew symmetric matrix of order n, and C is the column matrix of

order nx1, then C’AC is

A)identity matrix of order n

B) identity matrix of order 1

C) unit matrix of order 1

D) zero matrix of order 1

6.If A is a matrix of order mxn and B is a matrix such that AB’, BA’ both are

defined then order of B is

A) mxm B) nxn C) mxn D) nxm

7. If A+B= �1 01 1

�, A-2B=�−1 10 −1

�, then A is equal to

A) �

��1 12 1

� B) �

��1 12 −1

� C) �

��− 1 12 1

� D) �

��1 1− 2 1

�

8. The symmetric part of �2 −2 −41 3 41 −2 −3

� is

(A) �−2 5 4−6 12 1512 − 24 −30

� (B) �

−2 −3/2 −3/2−3/2 3 4−3/2 1 −3

�

(C)�

−2 −3/2 −3/2−3/2 3 4−3/2 1 −3

�(�)�

2 −1/2 −3/2−1/2 3 1−3/2 1 −3

�

9. The area of trainagle with vertices (-3,0)(3,0)(0,k) is 9 sp.unit then k is

A) 9 B) 3 C) 6 D) -9

10.For any two matrices A, B |�|=2, |�|=3 then |�� | is

A) 2 B) 6 C,) 12 D) 4

11. If � =�

�, then �

0 −1 1cos� �� 0�� 0 cos�

� is

A) 0 B) ½ C) √3/2 D)none of these

12.If A is a non-singular matrix of order 3 such that A2=3A, then the value of |�| is

A) -3 B) 3 C) 9 D) 27

13. The function f(x) =�(�)=��

��

��

is continuous at x=0 then the value of k

is

A) 3 B) 2 C) 1 D) ½

14.If function f(x) =��|�|is

A) continuous everywhere but not differentiable at x=0

B) continuous and differentiable everywhere

C)not continuous at x=0

D)none of these

15. If y=� ��+ ��+ ��+ √��± − − − − − then ��

��=

A) ��

�� B)

��

�� C)

��

�� D)

��

��

16.If u= ��

�� ,v= ��

�� then ��

��

A)1/2 B) x C) 0 D) 1,

17. The equation of normal to the curve 3x² – y² = 8 which is parallel to the line

,x + 3y = 8 is

(A) 3x – y = 8

(B) 3x + y + 8 = 0

(C) x + 3y ± 8 = 0

(D) x + 3y = 0

18. The two curves; x³ – 3xy² + 2 = 0 and 3x²y – y³ – 2 = 0 intersect at an angle

of

(A) π/4

(B) π/3

(C) π/2

(D) π/6

19.The function f(x) = tan x – x

(A) always increases (B) always decreases (C) sometimes increases and sometimes decreases. (D) never increases

20.Feasible region is the set of points which satisfy

A) objective function B) some of the given conditions C) all of given constraints D) none of these

Section-B

21.. Which of the following functions from f from Z to Z is bijective

A) f(x)= x3 B). f(x)=x+2 C) f(x)=2x+1 D) f(x)= �� + 1

22. If the set A has 4 elements and set B contains 5 elements then then

number of one-one and onto mappings from A to B is

A) 0 B) 4� C) 5�D) none of these

23.Let f:R→ � defined by f(x) =�(�)=�,��,��the value of f(5)+f(-2) is

A) .23 B) 21 C) 20 D) 27

24.The value of cos-1(cos��

�) + sin-1(sin

��

�) is

A). 0 B) 1 C) ��

� D)

��

�

25.The value of cos-1(2x2-1) is

A) 2 cos-1x B) 2 sin-1x C) 2 tan-1x D) none of these

26.A diagonal matrix is commutative with every matrix of the same order then

it is necessarily

A) Diagonal matrix B) scalar matrix C) unit matrix D) null matrix

27.�7 1 29 2 1

��345�+ �

810

� =

A) �4544

� B) �4350

.��)�1810

��)�1820

�

28. If A= �1 1 11 1 11 1 1

� then A4 is

A) �1 1 11 1 11 1 1

��)�4 4 44 4 44 4 4

� C) �2 2 22 2 22 2 2

��)�27 27 2727 27 2727 27 27

�

29.The value of the determinant �

0 ��

�� 0 ��

�� 0

�=

A) 2xyz B) 0 C) 2��)4��

30. If A is any square matrix of order 3x3 and|�| = 5then the value of |��(��)| is

A)625 (B) 272 (C) 108 (D) 125

31. Find the minor of the element of second row and third column in the

following determinant

�2 −3 56 0 41 5 −7

�

A)13 (B) 4 C) 5 D) )0

32.The function f(x) = -|� − 1| is

A) continuous as well as differentiable

B) not continuous but differentiable

C) Continuous but not differentiable

D) neither continuous nor differentiable

33.Derivative of tan-1(��

��) w.r.t √1+ 4��

A) �

��√�� B)

�

�√�� C)

�

��√�� D)

�

��_��

34.If y= 5cosx-3sinx then ��

�� is

A)-y B) y C) 25y D) 9y

35.The global minimal value of f(x) =�� − �� − 2� + 3 is

A) 6 B) 8 C) 4 D) does not exist

36. Which of the following function is decreasing on (0, �/2)

A) tan 2x B) Cos x C) cos 3x D) none of these

37. The slope of normal to the line �� − ��+ 3�� − 5� = 0 at x=2

A) (13/8,3) B) ��

�,��

�� C) �

�

�,��

�� D) �

�

�,��

��

38.A point of Ellipse 4x2+9y2=36 where tangent is inclinined to axes is

A) ��

√��,

�

√�� B) �

��

√��,

�

√�� C) �

�

√��,��

√�� D) all of these

39. Z = 20x1 + 20x2, subject to x1 ≥ 0, x2 ≥ 0, x1 + 2x2 ≥ 8, 3x1 + 2x2 ≥ 15, 5x1 +

2x2 ≥ 20. The minimum value of Z occurs at

(A) (8, 0)

(B) (52,154)

(C) (72,94) (D) (0, 10)

40. The feasible, region for an LPP is shown shaded in the figure. Let

Z = 3x – 4y be the objective function. A minimum of Z occurs at

(A) (0, 0) (B) (0, 8)

(C) (5, 0) (D) (4, 10)

SECTION-C

41. If ∆(�)= ��

��

�1 1

1 ��

��

�

�

− ��

�1 −1

�� for all x ∈ [0,�] then

A) ∆(�) will be maximum at x= � B) ∆(�)willbeminimumatx = �

C) range is [2,4] D) all of these

42. The feasible region for an LPP is shown shaded in the following figure.

Minimum of Z = 4x + 3y occurs at the point

(A) (0, 8)

(B) (2, 5)

(C) (4, 3)

(D) (9, 0)

43. Maximize Z = 4x + 6y, subject to 3x + 2y ≤ 12, x + y ≥ 4, x, y ≥ 0.

(A) 16 at (4, 0)

(B) 24 at (0, 4)

(C) 24 at (6, 0)

(D) 36 at (0, 6)

44. The equation of tangent to the curve y (1 + x²) = 2 – x, w here it crosses x-

axis is:

(A) x + 5y = 2

(B) x – 5y = 2

(C) 5x – y = 2

(D) 5x + y = 2

45. The value of b for which the function f (x) = sin x – bx + c is decreasing for x ∈ R is given by (A) b < 1 (B) b ≥ 1

(C) b > 1 (D) b ≤ 1

CASE STUDY

Mr Shashi, who is an architect, designs a building for a small company. The

design of window on the ground floor is proposed to be different than other

floors. The window is in the shape of a rectangle which is surmounted by a

semi-circular opening. This window is having a perimeter of 10 m as shown

below :

Based on the above information answer the following :

46. If 2x and 2y represents the length and breadth of the rectangular portion of the windows, then the

relation between the variables is

(A) 4y =2x =10 π (B) 4y-=10- (2 π)x (C) 4y =10- (2 π)x D) 4y -2x =10 π

47. The combined area (A) of the rectangular region and semi-circular region of the window expressed

as a function of x is

A) A= 10x+(2+π /2)x2 (B) A= 10x-(2+π /2)x2 (C) A= 10x-(2-π /2)x2 D) A= 10x+(2+π /2)x2

48. The maximum value of area A, of the whole window is

A) A=��

�� B) A=

��

�� C)A=

��

�� D)A=

��

��

49. The owner of the small company is interested in maximizing the area

whole window so that maximum light is possible, for this length of the

rectangular portion of window should be

A) ��

�� B)

��

�� C)

�

�� D)

��

��

50. In order to get maximum light input through the whole window the area of

semi circular opening is

A) ��

(��)� B)

��

�� C)

��

(��)� D) same as rectantular portion of window.

MATH KEY

1.B 6.C 11.B 16.D 21.B 26.B 31.A 36.B 41.C 46.C 2.C 7.A 12.D 17.C 22.A 27.B 32.C 37.B 42.B 47.B 3.B 8.D 13.B 18.C 23.A 28.D 33.A 38.D 43.D 48.B 4.C 9.B 14.A 19.D 24.A 29.C 34.C 39.C 44.A 49.A 5.D 10.C 15.A 20.A 25.A 30.A 35.C 40.B 45.C 50.

C

ECONOMICS - CLASS 12

TERM 1

Time: 90 minutes Maximum Marks: 40

GENERAL INSTRUCTIONS:

1. There are a total 60 questions in this paper out of which 50 questions are to be attempted.

2. This paper is divided into three Sections:

a. Section A – Contains 24 questions. Attempt any 20 questions.

b. Section B – Contains 24 questions. Attempt any 20 questions.

c. Section C – Contains 12 questions. Attempt any 10 questions.

3. All questions carry equal marks.

4. There is no negative marking.

Q. NO QUESTIONS ANSWER

SECTION A

(20 questions out of 24 questions are to be attempted)

1. Strategy of growth between the period 1951-90 focused on:

(a) import substitution

(b) export promotion

(c) leading role of public sector enterprises

(d) both (a) a nd (c)

2. Match the following and choose the correct alternative:

1. Quota (a) Quantity of goods that can be imported

2. Land Reforms (b) seeds that give large proportion of output

3. HYV Seeds (c) Improvements in the field of agriculture to

increase its productivity

4. Subsidy (d) The monetary assistance given by

government for production actvities

(a) 1-D, 2 –C, 3-B, 4-A

(b) 1-A, 2-D, 3-B, 4-C

(c) 1-A, 2-C, 3- B, 4-D

(d) 1-A, 2-B, 3-C, 4-D

3. Assertion(A): Under Industrial Policy, 1956 the state would have complete control of

those industries that were vital for the economy. The policies of the private sector

would have to be complimentary to those of the public sector, with the public sector

leading the way.

Reason (R): The decision to develop the Indian economy on socialist lines led to the

policy of the private sector controlling the commanding heights of the economy.

a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation

of Assertion (A).

b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct

explanation of Assertion (A).

c) Assertion (A) is true but Reason (R) is false.

d) Assertion (A) is false but Reason (R) is true.

4. Various details about the population of British India were first collected through a

census in.............................

(a) 1881

(b) 1911

(c) 1921

(d) 1931

5. From the set of statements given in column A and Column B, choose the correct pair

of statement:

Column A Column B

1. Railway services in India (a) 1897

2. First Indian Census (b) 1881

3. Second stage of Demographic Transition (c) 1883

4. First Train in India (d) 1921

(a) 1 - (a)

(b) 2 - (b)

(c) 3 - (c)

(d) 4 - (d)

6. Assertion (A): India's foreign trade maintained an export surplus throughout the

colonial period but it didn’t benefit the domestic economy.

Reason (R): The export surplus was used to meet the war expenses incurred by

colonial setup and to import invisible items.


of Assertion (A).





7. British enabled India to be an importer of raw materials and an exporter of finished

goods. (Choose the correct alternative)

(a) True

(b) False

(c) Partially True

(d) Partially False

8. Which international organization replaced General Agreement on trade and Tariff

(GATT):

(a) International Monetary Fund

(b) United Nations Organization

(c) World Trade Organization

(d) World health Organization

9. Read the following case study and answer the Q. No. 9 to Q. no. 13.

On 8 November, 2016:

On 8th November 2016, the Prime Minister of India, Narendra Modi, took the nation

by surprise by announcing that the government was demonetising currency with

denominations of 500 or 1000 rupees, with immediate effect. This amounted to the

demonetization of 86 percent of the Indian Currency in circulation.

Holders of the demonetised currency were given till 31st December, 2016 to exchange

their demonetised bills for newly issues currency, which would be in denominations

of 500 or 1000 Rupees.

Demonetisation as a tool for fighting crime, tax evasion and activities in the

underground economy has been advocated in the past. The argument rests on the

premise that, in an international context, many underground economic activities are

financed using large denominations currency notes. A unique aspect of the Indian

measure was that it was carried out during a period of economic stability, but very

little time given to the public to exchange their demonetised bills.

Demonetisation implies...............................................................

(a) Stripping the legal tender status of a currency

(b) Removing certain currency notes from the market and investing the, in

government bonds

(c) Deliberately reducing the flow of certain currency bills for a specified period of time

(d) All of the above

10. The major reason(s) given for demonetization of currency bills:

(a) Seize the wealth that was accumulated through undeclared income

(b) Eliminate the scourge to counterfeit currency circulating in an economy

(c) Pushing a nation towards digitalization

(d) All of the above

11. Demonetaization of currency bills in 2016 has been the first episode of

demonetization in context of Indian economy. The given statement is:

(a) True (b) False (c) Partially True (d) Partially False

12 The recent demonetization in which Prime Minister Narendra Modi demonetised ₹

500 and ₹ 1000 currency bills were announced on:

(a) 8 th November, 2017

(b) 8 November, 2016

(c) 6 th November, 2017

(d) 6 the November, 2016

13. Which of the following gives the correct meaning of legal tender status?

(a)Legally recognized payment instrument used to fulfil a financial commitment

(b) Legally recognised payment instrument used to fulfil debts of more than ₹ 1 Crore

(c) Legally recognised payment instrument used to fulfil debts of less than ₹ 1 Crore

(d) none of the above

14. Select the correct combination between the following columns:

Column A Column B

A. Licensing on Production capacities (i) Stabilisation measures

B. Correcting the BoP situation and bringing

inflation under control

(ii) Globalization

(c) Increasing efficiency and international

competitiveness

(iii)MRTP Act, 1969

(d) Integrating National economy with the world

economy

(iv) Structural measures

Codes:

(a) (b) (c) (d)

A B C D

(ii) (I) (iv) (iii) (iii) (iv) (i) (ii) (iv) (i) (iii) (iii) (ii) (iii) (i) (iv)

15. Assertion (A): As an important member of WTO, India has been in the forefront of

framing fair global rules, regulations and safeguards and advocating the interests of

the developing world.

Reason (R): India has kept its commitments towards liberalization of trade by

removing quantitative restrictions on imports and reducing tariff rates.


of Assertion (A).





16 ________ is the main source of money supply in an economy.

(a) Central Bank

(b) Commercial Banks

(c) Government

(d) Both (a) and (b)

17 Assertion: Open market operations are used to influence money supply in the

economy.

Reason: Central bank sells government securities to increase the flow of credit in the

economy.


of Assertion (A).





18 Identify the correctly matched pair of items in Column A to that of Column B.

Column A Column B

1. Supply of Money Money in circulation at a point

2. Stock of Money Supply of money considered over a period

3. Flow of Money Money held by Public and Bank today

4. Reserve Money Supply of money studied at a point of time

(a) 1- (a)

(b) 2 - (b)

(c) 3 - (c)

(d) 4 - (d)

19 Assertion (A): Revenue deficit includes capital receipts and capital expenditure.

Reason (R): Revenue deficit is related to revenue expenditure and revenue receipts of

the government


of Assertion (A).





20 Out of the following, which is the most rigid exchange rate system, which does not

allow any adjustment in the exchange rate?

(a) Flexible Exchange Rate System

(b) Gold Standard System of Exchange Rate

(c) Bretton Woods System of Exchange Rate

(d) None of these

21. Assertion (A): Accommodating transactions are undertaken to make equilibrium in

BoP account.

Reason (R): Accommodating items are also called above the line items


of Assertion (A).





22. Disequilibrium in balance of payments leads to:

(a) increase in official reserves with RBI

(b) decrease in official reserves with RBI

(c) both (a) and (b)

(d) none of these

23 Choose the incorrect pair given below.

Column I Column II

A. Export of Goods (I) Demand for foreign Exchange rate

B. Import of Services (ii) Supply of foreign exchange

C. Fixed and Floating exchange rate

(iii) Dirty FLoating

COdes

(a) (A) - (I) (b) (B) - (ii)

(c) (C) - (iii) (d) Both (a) and (b)

24 The US $ exchange rate for Rupee is ₹ 75 now, as compared to ₹63 previously.

This shows that the value of Rupee has ….........................

(a) depreciated

(b) appreciated

(c) devalued

(d) revalued

SECTION B


25 Select the correct combination between the following columns:

Column A Column B

A. Licensing on Production capacities (i) Stabilisation

measures

B. Correcting the BoP situation and bringing

inflation under control

(ii) Globalization

(c) Increasing efficiency and international

competitiveness

(iii)MRTP Act, 1969

(d) Integrating National economy with the world

economy

(iv) Structural measures

Codes:

(a)

(b)

(c)

(d)

A B C D

(ii) (I) (iv) (iii)

(iii) (iv) (i) (ii)

(iv) (i) (iii) (iii)

(ii) (iii) (i) (iv)

26 Assertion (A): As an important member of WTO, India has been in the forefront of

framing fair global rules, regulations and safeguards and advocating the interests of

the developing world.

Reason (R): India has kept its commitments towards liberalization of trade by

removing quantitative restrictions on imports and reducing tariff rates.


of Assertion (A).





27 Who was the first person to define Poverty in terms of Jail Cost of Living?

(a) Dadabhai Naroji

(b) VKRV Rao

(c) William Digby

(d) R.C. Desai

28 …........................................mainly aims at creating employment opportunities-both

self-employment and wage employment in urban areas.

(a) Rural Employment Generation Programme (REGP)

(b) prime Minister’s Rozgar Yojna (SJSRY)

(c) Sawarna Jayanti Shastri Rozgar Yojna (SJSRY)

(d) Swarna Jayanti Gram Swarozgar Yojna (SGSY)

29 Assertion (A): Calorie based norm is not adequate measure to identify poor.

Reason (R): This method does not differentiate between the very poor and the other

poor. This mechanism takes into account expenditure on food and a few other items

as proxy for income. It ignores many other vital factors associated with poverty; for

instance, the accessibility to basic education, health care, drinking water and

sanitation.


of Assertion (A).





30 Which of the following organizations is engaged in designing text material up to the

senior secondary level?

(a) UGC

(b) AICTE

(c) ICMR

(d) NCERT

31 Human Capital considers education and health as a means t increase labour

productivity, whereas human Development considers that they are necessary for

human well-being. The given statement is:

(a) True

(b) False

(c) Partially true

(d) Partially False

Read the para given below and answer the questions 32 to 35:

Even as the country’s world-famous handicraft Industries declined, no corresponding

modern industrial base was allowed to come up to take the place of pride so long

enjoyed by the former. The primary motive of the colonial government behind this

policy of systematic deindustrialization was to reduce India to the status of a mere

exporter of important raw materials for the upcoming modern industries in Britain

and to turn India into a sprawling market for the finished products of Britain’s modern

industries so that their continued expansion could be ensured to the maximum

advantage of their home country. In the unfolding economic scenario, the decline of

the indigenous handicraft Industries created not only massive unemployment in India

but also a new demand in the Indian consumer market which was profitably met by

the increasing imports of cheap manufactured goods from Britain. India was forced to

open its large markets to British goods which could be sold in India without any tariff

or duties compared to local Indian producers who were heavily taxed. In Britain,

protectionist policies such as bans and high tariffs or duties were implemented to

restrict Indian goods, especially textiles, from being sold there, whereas raw cotton

was imported from India without tariffs to Britain factories which manufactured

textiles. British economic policies gave them a monopoly over India's vast markets and

raw materials such as cotton.

32 The decline of the handicraft industry was caused due to:

(a) Discriminatory policies

(b) Low demand

(c) Indian imports

(d) Export surplus

33 TISCO was established in ________.

(a) 1809

(b) 1907

(c) 1908

d) 1806

34 An industry that produces machines for production of goods meant for consumption

is called ________ goods industry.

(a) Capital

(b) Consumer

(c) Final

(d) None of these

35 Which industry suffered a setback due to the partition of the country in 1947?

(a) handicraft

(b) jute

(c) cotton

(d) both (b) and ©

36 What would be the total money creation in the economy, If initial fresh deposits with

banks = ₹ 50,000 and LRR = 20%.

(a) ₹ 2,50,000

(b) ₹ 5,00,000

(c) ₹ 10,00,000

(d) ₹ 12,00,000

37 ________ refers to the proportion of total deposits which Banks are required to keep

in the form of reserves with themselves.

(a) Cash deposit ratio

(b) Statutory liquidity ratio

(c) Bank rate

(d) Reserve deposit ratio

38 What types of Tax is the Capital gain tax

(a) Direct Tax

(b) Indirect Tax

(c) It is a cess

(d) It is a Fine

39 Tax that is imposed on value added at the various stages of production is known as:

(a) corporate profit tax

(b) direct personal tax

(c) value added tax

(d) none of these

Read the news report given below and answer the questions 40 to 43:

The trade deficit between India and China in April-June this fiscal year fell to USD 5.48

billion as compared to USD 13.1 billion in the same period last year, parliament was

informed on Wednesday.

In a written reply, Commerce and Industry Minister Piyush Goyal said the bilateral

trade between the countries too dipped to USD 16.55 billion during the first three

months of 2020-21 as against OSD 21.42 billion in the same period last year.

“Government has consistently taken steps to balance our trade with China by

increasing our dependence on imports from China.” he said.

Ina separate reply, the minister said at present, about 550 tariff lines (or Products) are

under the restricted/prohibited category for imports under the Foreign Trade Policy.

Imports of these products are restricted from all countries, including China.

Replying to a separate question, he said merchandise exports from special economic

zones (SEZs) dipped to ₹ 81,481 crore during April- August, 2020 as against ₹ 1,30,129

crore in the same period 2019-20

“However, services exports have shown a growth of 9% during April to August 2020 in

comparison to corresponding period of previous year.” He added.

“Indo-Chine trade deficit dips to $5.48 billion in April-June"- The Economic Times-

September 16,2020

40 Considering the steps taken by the government to reduce the Trade deficit with China,

choose the correct alternative:

(i) To reduce the dependence on imports from China

(ii) To increase our exports to China

(iii) To make Rupee stronger than Yuan

(iv) To prohibit the use of Chinease goods

(a) (i) and (ii)

(b) (ii) and (iii)

(c) (i), (ii) and (iii)

(d) (iii) & (iv)

41 Which of the following has seen a growth?

(a) Trade deficit with China

(b) Imports of merchandise

(c) Export of merchandise

(d) Export of Service

42 The Bilateral trade between India and China dipped to ...................

(a) 5.48 billion USD

(b) 13.1 billion USD

(c) 16.55 billion USD

(d) 21.42 billion USD

43 550 tariff lines (or product) are under the restricted/ prohibited category for

........................ under the Foreign Trade policy

(a) imports

(b) exports

(c) either (a) or (b)

(d) neither (a) nor (b)

44 Assertion (A): Manage floating exchange rate system is a hybrid system of exchange

rate used by most of the countries in recent time.

Reason (R): Excessive fluctuation in exchange rate system is checked by the central

authority under dirty floating exchange rate.


of Assertion (A).





45 Occasional intervention by central bank to influence price of foreign exchange is

known as ...................

(a) dirty floating

(b) hedging

(c)appreciation

(d) depreciation

46 Assertion (A): M4 is the least liquid measure of money supply.

Reason (R): M4 is inclusive of all money supply included in M3 as well as the total

deposits with the post office.


of Assertion (A).





47 If balance of trade is showing a deficit of ₹ 200 crore and value of imports is ₹ 900

crore, then the value of exports would be:

(a) ₹ 200 crore

(b) ₹ 500 crore

(c) ₹ 700 crore

(d) ₹ 900 crore

48 Read the following statements -Assertion (A) and Reason(R), Choose one of the

correct alternatives given below:

Assertion (A): If the receipts and payments on the current account are equal to each

other, it depicts a situation of Current Account Surplus.

Reason(R): A surplus current account means that the nation is a lender to other

countries and a deficit current account means that the nation is a borrower from other

countries.

Alternatives:


of Assertion (A).





SECTION C


49 Distress sale by the farmers refers to:

(a) the sale of rotten crop

(b) the sale of crop through the commission agents

(c) the sale of crop at the minimum support price fixed by the government

(d) the sale of crop immediately after harvest owing to urgent cash needs of the

farmers

50 Rural poor includes:

(a) land less labourers only

(b) marginal farmers only

(c) tenants at will only

(d) all of these

51 Assertion: The public sector remained confined to some departmental undertakings

like railways, communications etc.

Reason: The restricted growth of the public sector was a drawback for the industrial

sector


of Assertion (A).





52 Read the para given below and answer the questions that follow: The Reserve Bank of

India is the Central Bank of India, which means it is at the apex of the banking structure

of the economy. It is one of the main governing bodies and regulatory bodies in India

and helps the government in its role as a business facilitator. The RBI was first

established on the 1st of April 1935 and nationalized in 1949. The governing of the RBI

is done in accordance to the RBI Act by the government. Its day-to-day affairs are

taken care of by the Board of Directors who are chosen by the government. The RBI is

the only authorized body that can issue currency in the country. So, they print,

distribute and regulate the flow of currency in the economy. The RBI provides the

central and state government with basic banking functions and facilities like

depositing money, remittances etc. It can also make advances and provide loans to

the government whenever necessary. It also supervises all other commercial banks in

the country and provides financial assistance to these banks like short-term loans and

advances. It is the function of the RBI to maintain the value of the rupee in the global

economy. It does so by acting as the custodian of foreign exchange reserves in the

country. It maintains enough reserves to battle against fluctuations. The RBI also

maintains control of credit and money in the market. It uses qualitative and

quantitative methods to either expand or contract the available credit in the economy

according to circumstances.

If the legal reserve ratio is 20%, the value of money multiplier would be:

(a) 2 (b) 3

(c) 5 (d) 4

53 In order to encourage investment in the economy, the central bank may:

(a) reduce cash reserve ratio.

(b) increase cash reserve ratio.

(c) sell government securities in open market.

(d) increase the bank rate.

54 The monetary policy generally targets to ensure:

(a) price stability in the economy.

(b) employment generation in the country.

(c) stable foreign relations.

(d) greater tax collections for the government

55 Lowering the bank rate is a measure to:

(a) encourage foreign investment in the economy.

(b) increase money supply in the economy.

(c) discourage investment activity in the economy.

(d) increase government expenditure

56 What was the nature of the Indian economy on the eve of independence?

(a) Stagnant

(b) Backward

(c) Underdeveloped

(d) All of these

57 Liberalisation of the economy under the new economic policy changed the role of RBI

in the economy:

(a) from a 'regulator' to 'facilitator' of the financial sector

(b) from a 'controller' to 'manager' of the government debt

(c) both (a) and (b)

(d) none of these

58 Due to appreciation of domestic of domestic currency:

a) Exports rise

b) imports rise

c) Imports falls

d) None of the above

59 Read the following statements carefully and choose the correct alternatives given

below:

Statement 1 – Revenue and Capital receipts are increasing but borrowings and other

liabilities are reducing.

Statement 2 – Grants and aid for creation of capital assets decreased from 2019 to

2021

Alternatives:

a) Both the statements are true.

b) Both the statements are false.

c) Statement 1 is true and Statement 2 is false

d) Statement 2 is true and Statement 1 is false

60 Moral suasion by the RBI relates to:

(a) pressure by the RBI to follow its directives

(b) persuasion by the RBI to follow its directives

(c) persuasion as well as pressure by the RBI to follow its directives

(d) none of these

delhi public school nacharam

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