Class test Nov 2 Class 12 BOP Environment Answer key

 Ques 1. Giving reasons, state whether the following statements are true or false

(i) Current account of Balance of Payment account records only export and import of goods and services.
(ii) Foreign investments are recorded in the capital account of Balance of Payments. 

(iii) Excess of foreign exchange receipts over foreign exchange payments on account of accommodating transactions equals deficit in the Balance of Payments.

(iV) Export and import of machines are recorded in capital account of Balance of Payments account. 

(v) Difference between value of exports and imports of goods and services are called Balance of Trade.
(vi) External assistance is not recorded in Balance of Payments account.

Ans. (i) False, as current account of Balance of Payments account also records unilateral transfers.
(ii) True, as all kind of foreign investments (foreign direct investments and portfolio investments) are included in the capital account of Balance of Payments as they affect the assets positions of the country.

Ans. (iii)  False, as accommodating transactions removes both surplus and deficit of Balance of Payments account.
(iv) False, export and import of machine, it will be recorded in current account as it is a producer good exported.

Ans. (v) False, because Balance of Trade only records the export and import of visible items, i.e. goods.
(vi) False, because external assistance are included in the current account of Balance of Payments as unilateral receipts..

Ques 2. Explain the distinction between autonomous and accommodating transactions in Balance of Payments.

Ques 3. Why and when was the Central Pollution Control Board (CPCB) set up?   (2)

Answer:  
In order to address three major environmental concerns in India, viz water, air and land pollution, the government set up the Central Pollution Control Board (CPCB) in 1974.

Ques 4. Give two instances of       (2)

(a) Overuse of environmental resources.
(b) Misuse of environmental resources.
Answer:
(a) Two instances of overuse of environmental resources are

• Excess use of electricity leads to depletion of resources like coal and water from which electricity is generated.
• Excess use of petrol and diesel in vehicles.

(b) Two instances of misuse of environmental resources are

• Soil degradation due to improper crop rotation and crop shifting.
• Drying up of rivers due to supply of water from them to dams and reservoirs.

Ques 5. What are the functions of the environment? (4)

The main functions of environment are

• Environment supplies resources for production Environment includes those physical resources which are gifted by nature. These resources are used for producing various goods and services.
• Environment sustains life Sun, soil, air and water are the essential ingredients of environment for the human life. Absence of these will lead to an end of life on Earth.
• Environment assimilates waste Production and consumption activity generates wastes. It is generally in the form of garbage which is absorbed by the environment.
• Environment enhances quality of life: Environmental surroundings include rivers, oceans, mountains and deserts. Man enjoys these surroundings, adding to the quality of his life.

Ques 6. Name animals/birds which help in biopest control?    (1)
Answer:
Snakes, owls, peacock, lizards, etc help in biopest control.

Ques 7. The resource extraction is not above the rate of regeneration of the resource and the wastes generated are within the assimilating capacity of the environment. When this is not so, the environment fails to perform its third and vital function of life sustenance and this results in an environmental crisis.

Why environmental problem did not arise before industrialisation?    (1)
(a) Demand for environmental resources and services was much less than their supply
(b) People were not aware about environmental resources
(c) Population was within the absorptive capacity
(d) Both (a) and (c)
Answer:
(d) Both (a) and (c)