Short Answer TypeFrom the following data about a Government budget, find out (a) Revenue deficit, (b) Fiscal deficit and (c) Primary deficit:
(Rs. Arab)
(i) Capital receipts net of borrowings 95
(ii) Revenue expenditure 100
(iii) Interest payments 10
(iv) Revenue receipts 80
(v) Capital expenditure 110
Giving reasons classify the following into intermediate products and final products:
Furniture purchased by a school.
Giving reasons classify the following into intermediate products and final products:
Chalks, dusters, etc. purchased by a school.
Explain the role of the following in correcting 'deficient demand' in an economy:
Open market operations.
Open Market Operations (OMO) refer to the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system. To curtail deficit demand, the central bank purchases securities in the open market. With purchase of securities, the central bank pumps in additional money into the economy. With the additional money the level of Aggregate Demand in the economy increases. Thus, the deficit demand is corrected.
Explain the role of the following in correcting 'deficient demand' in an economy:
Bank rate
Explain the role of the following in correcting 'excess demand' in an economy:
Bank rate
Explain the role of the following in correcting 'excess demand' in an economy:
Open market operations
Long Answer TypeDistinguish between collusive and non-collusive oligopoly. Explain how the oligopoly firms are interdependent in taking price and output decisions.
Explain the process of money creation by the commercial banks with the help of a numerical example.
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