R.N Institute of Professional Studies D-12 Main Kanti Nagar Krishna Nagar Delhi-51 TRUE OR FALSE 1.

Money cannot solve the problem of double coincidence of wants. 2. Silver coins are still prevalent in India? 3. Money is a liquid store of wealth. 4. Near money is also known as plastic money. 5. Transfer of value is one of the primary functions of money. 6. Cash and coins are also known as bank money. 7. Money in India is only issued by government of India. 8. Money as a Common measure of value is a secondary function. 9. Tax receipts are a capital receipts. 10. Entertainment tax is direct tax. 11. Corporate tax is a capital receipts. 12. Receipt from sale of shares of Bharat Heavy Electricals Ltd. (BHEL) is a revenue receipt. 13. Payment for the salaries of government employees is capital expenditure. 14. Interest paid by govt. on bonds is capital expenditure. 15. Fiscal deficit is always less than revenue deficit. 16. Fiscal deficit is non-inflationary. 17. Capital budget relates to current years receipts and payments. 18. Expenditure made on the development of a railway line is a capital expenditure. 19. Salary of president of India is a capital expenditure. 20. Repayment of government loans is revenue expenditure. 21. Sales tax is an indirect tax. 22. Receipt on the issue of equity shares by the public undertaking is a revenue receipt. 23. Import and export of goods are an invisible item of trade. 24. Salaries and allowances of technical experts is an item of balance of payment on capital account. 25. Gifts and donations sent abroad or received from abroad is an item of balance of payment on capital account. 26. Royalities and commissions received and paid abroad is an item of balance of payment on current account. 27. Increase and fall in gold reserves is an item of balance of payment on capital account. 28. External commercial borrowing is an item of balance of payment on Current account. 29. Deposits by a Non-resident Indian in domestic bank is an item of balance of payment on current account. 30. When there is appreciation of Indian rupee in terms of dollar, Indian exports will increase? 31. When there is depreciation of Indian rupee in terms of dollar, India imports will rise? 32. In case of flexible exchange rate, exchange rate does not change. 33. In modern world, fixed exchange rate prevails. 34. When value of Indian rupee depreciates, 1 Dollar = Rs. 50 will come down to 1 Dollar Rs. 48. 35. Money supply does not include time deposits with commercial banks. 36. Money creation is primarily made by Central Bank of the country 37. Main objective of money creation is the motive of raising money supply. 38. Money creation depends upon primary deposits and rate of interest. 39. If cash reserve ratio is 20% credit creation multiplier would be 5. 1

False False True False False False False False False False False False False False False False False True False False True False False False False True True False False False False False False False False False False True

R.N Institute of Professional Studies D-12 Main Kanti Nagar Krishna Nagar Delhi-51 40. Govt. of India has monopoly right over the issue of currency. 41. Main motive of central bank is to maximize profitability. 42. Central bank of the country can have public dealings. 43. Monetary Policy is designed by Govt. of India? 44. Bank rate of the country is also known as market rate of interest. False False False False False