CBSE Class-12 Economics: Questions 308 - 316 of 523

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Question number: 308

» Balance of Payments » Foreign Exchange Rate

Essay Question▾

Describe in Detail

What is foreign exchange market? How is foreign exchange rate determined in this market?

Explanation

The foreign exchange market is a global but not centralized market for the trading of currencies. Volume of trading, it is by far the largest market in the world. The main participants in this market are the larger international banks.

In that we assume that there are two countries, India… (233 more words) …

Question number: 309

» National Income and Related Aggregates » Net National Product

Essay Question▾

Describe in Detail

From the following data about a firm, calculate the firm’s net value added at factor cost:

calculate the firms net value added at factor cost

calculate the firms net value added at factor cost in detail

(Rs in Lac)

Subsidy

40

Sales

800

Depreciation

30

Exports

100

Closing stock

20

Opening stock

50

Intermediate purchases

500

Purchase of machinery for own use

200

Import of raw material 60

60

Explanation

Net value added at factor cost = Sales + Closing stock - Opening stock - Intermediate purchases - Depreciation + Subsidy

Net value added at factor cost = 800 + 20 – 50 - 500 – 30 + 40

=rs280 lakh

Question number: 310

» National Income and Related Aggregates » Types of Goods

Short Answer Question▾

Write in Short

What is the difference between the values of exports of goods and imports of goods?

Question number: 311

» Money and Banking » Central Bank & Its Functions » Central Bank

Essay Question▾

Describe in Detail

Explain briefly the ‘banker to the government’ function of the central bank

Explanation

Banker to government is performing functions for the government as a commercial bank performs for its customers. It handles the accounts of the central or state government and it receives deposits from government and it makes short-term advances to the government and it collects cheques and drafts deposited in the… (166 more words) …

Question number: 312

» Balance of Payments » Balance of Payments Account

Short Answer Question▾

Write in Short

State components of the current account of the balance of payments account.

Question number: 313

» Producer Behaviour and Supply » Revenue

Essay Question▾

Describe in Detail

Explain producer’s equilibrium using schedule. Use total cost and total revenue approach.

Explanation

Producer earns maximum profits. Profit is the difference between total revenue and total cost. Producer is in equilibrium at that level of output where he is earning maximum profits. If he produces less than he does not maximize total profits.

Total cost and Total Revenue curves: -

Profit is the… (74 more words) …

Question number: 314

» Money and Banking » Commercial Banking System

Essay Question▾

Describe in Detail

Give four agency functions of commercial banks.

Explanation

Agency services are those services which are rendered by commercial banks as agents of their customers. They include:

a) Collection and payment of cheques and bills on behalf of the customers;

b) Collection of dividends, interest and rent, etc. on behalf of customers, if so instructed by them;

c) Purchase… (53 more words) …

Question number: 315

» Consumer's Equilibrium and Demand » Demand » Determinants of Demand

Essay Question▾

Describe in Detail

What is the relation between good X and good Y in each case, if with fall in price of X demand for good Y (i) rises and (ii) falls? Give reason.

Explanation

  1. With fall in the price of x, demand for good Y rises: - This situation suggests that these are supplementary goods because supplementary goods are those which are used together for example car and petrol.
  2. With fall in the price of X, demand for good Y falls: - This situation… (29 more words) …

Question number: 316

» Balance of Payments » Foreign Exchange Rate

Short Answer Question▾

Write in Short

Define flexible exchange rate system.

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