Money and Banking (CBSE Class-12 Economics): Questions 14 - 26 of 35

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Question number: 14

» Money and Banking » Central Bank & Its Functions » Open Market Operations

Short Answer Question▾

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What are open market operations? What is their effect on availibility of credit?

Question number: 15

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

Essay Question▾

Describe in Detail

What is bank rate policy? How does it work as a method of credit control?

Explanation

Bank rate refer to the rate at which central bank discount the bills which are presented by the commercial bank as funds.

Credit control of bank has two types:

Quantitative credit control and Qualitative credit control

In that establish the economy by destroying the features which are responsible for increase… (8 more words) …

Question number: 16

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

Appeared in Year: 2006

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Explain any one of the following functions of the central bank:

Question number: 17

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

Appeared in Year: 2010

Short Answer Question▾

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Explain the ‘lender of last resort’ function of the Central Bank.

Question number: 18

» Money and Banking » Commercial Banking System

Appeared in Year: 2010

Essay Question▾

Describe in Detail

How do changes in bank rate affect money creation by Commercial Banks? Explain

Explanation

  • Following is the way how changes in bank rate affect money creation by Commercial Banks:
  • Increase in the bank rate by the central bank increases cost of borrowing for the commercial banks. This increase in the lending rate reduces the borrowing capacity of the general public. This lowers the multiplier… (68 more words) …

Question number: 19

» Money and Banking » Money and Functions

Essay Question▾

Describe in Detail

Give meaning of money. Explain its ‘medium of exchange’ function

Explanation

Meaning of money supply: - money supply is the total stock of money moving in an economy. The moving money involves the currency, printed notes, money in the deposit accounts and in the form of other liquid assets.

Medium of exchange: -

A medium of exchange is used in trade… (220 more words) …

Question number: 20

» 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: 21

» 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: 22

» Money and Banking » Commercial Banking System

Essay Question▾

Describe in Detail

Explain the lending function of commercial banks.

Explanation

Lending function of commercial bank means they act as financial intermediaries and accept deposits from more money than they want to spend and lend it with more money and they have at hand.

It means money from lenders to borrowers.

Lenders - > Banks - > Borrowers

Function of Commercial… (10 more words) …

Question number: 23

» Money and Banking » Commercial Banking System

Essay Question▾

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Explain the acceptance of deposits function of commercial banks.

Explanation

A bank is accepting deposits from the public. People can deposit their money of following accounts:

(1) Fixed or Time deposit account: - Cash is deposited in his account for limited time. This is not payable on demand.

(2) Current or demand deposit Account: - In this depositor can deposit… (29 more words) …

Question number: 24

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

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What is a central bank?

Question number: 25

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

Essay Question▾

Describe in Detail

State any three points of distinction between central bank and commercial banks.

Explanation

Characteristics

Central Bank

Commercial bank

Definition

Central bank is the institution of a country’s monetary system.

Commercial banks are part of banking structure.

Authority

It has authority to print new currency notes

It has no authority to print currency notes.

Custody

It is custodian of country’s foreign exchange and stock… (13 more words) …

Question number: 26

» Money and Banking » Commercial Banking System

Short Answer Question▾

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Give the meaning of demand deposits of commercial banks.

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