QUESTIONS FOR SLOW LEARNER

CLASS - XII ECONOMICS

PART - B  MACRO ECONOMICS

MONEY AND BANKING                   Total Marks  = 6

KEY CONCEPTS: -

1. Meaning and Supply of Money - Currency held by Public and net demand deposit  held by  

     Commercial

2. Money creation by commercial bank.

3. Central Bank and its functions - Bank of Issue, Govt. bank, Banker's Bank, Control of credit through Bank Rate, Repo rate , Reverse repo rate , Open market operations, margin requirement.

1  Mark Question.	3 / 4 Marks Questions	6 Marks Questions
1. What is meant by money. 2. What is M1? 3. What is meant by Barter    System? 4. Write any two drawbacks of Barter system. 5. What are two the functions of money. 6. What is meant by Central Bank? 7. What do you meant by Credit creation by Commercial Bank? 8. Define Bank Rate, CRR and SLR . 9. What is meant by Open market operation? 10.Define money supply. 11. State main function of Central Bank.	1. Explain any two drawback of Barter System. 2. Explain any two functions of Money. 3. How does Central Bank apply      Bank rate as a measure of credit control. 4. How does Central is ' Lender of last Resort' Explain. 5. How does ' Open market operation ' control the credit in the market? Explain. 6. Distinguish CRR and SLR. 7. Distinguish between Repo rate and Reverse repo rate.	1. Explain the functions of      Money. 2. Explain the Credit Creation by Commercial Bank with  numerical example. 3. How the Following  help to control the Credit :-  (i) Bank Rate. (ii) Repo Rate (ii) Reverse repo rate. 4. Explain the Functions of   Central Bank.