Money and Banking (CBSE Class-12 Economics): Questions 27 - 35 of 35

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Question number: 27

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

Short Answer Question▾

Write in Short

Define Bank rate.

Question number: 28

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

Essay Question▾

Describe in Detail

Explain ‘banker to the government ’ function of central bank

Explanation

  • The central bank function as a Banker to the government: -
  • As a banker to government, the central bank function for government as commercial bank. It handles the accounts of central government and it receive deposits from government and it collects cheques and drafts deposit from government account.
  • The central… (64 more words) …

Question number: 29

» Money and Banking » Commercial Banking System

Essay Question▾

Describe in Detail

Explain the lending functions of commercial banks

Explanation

Functions of commercial banks are as follows:

Primary function: -

(1) Accepting Deposits: Commercial bank accepts various types of deposits from public especially from its clients. It includes saving account deposits, recurring account deposits, fixed deposits, etc. These deposits are payable after a certain time period.

(2) Making Advances: The… (141 more words) …

Question number: 30

» Money and Banking » Money and Functions

Essay Question▾

Describe in Detail

Explain the ’medium of exchange’ function of money.

Explanation

Money is a particular type of asset in an economy that people use to buy goods and services from other people or businesses. A medium of exchange is something that buyers will exchange with a seller when they want to purchase goods or services from the seller. While many things… (37 more words) …

Question number: 31

» Money and Banking » Commercial Banking System

Short Answer Question▾

Write in Short

What is Commercial Bank?

Question number: 32

» Money and Banking » Money Creation

Essay Question▾

Describe in Detail

Explain the evolution of money.

Explanation

Stages for evolution of money:

(i) Commodity for Commodity: Commodity for Commodity is also known as Barter system in which goods were exchanged for goods and services were exchanged for services when there was not any other source of exchange in the economy known. But this system lead to the… (84 more words) …

Question number: 33

» Money and Banking » Money and Functions

Essay Question▾

Describe in Detail

Give meaning of money. Explain the ‘store of value’ function of money.

Explanation

Money: - Money means medium of exchange and we all agree to accept in making transactions. For example merchants agree to accept money in exchange for their goods. Money provides simple device for identifying and communicating value.

Function of money is ‘store of value’: - Store a value is main… (144 more words) …

Question number: 34

» Money and Banking » Commercial Banking System

Essay Question▾

Describe in Detail

Explain the ‘acceptance of deposits’ function of commercial banks.

Explanation

The most important function of commercial banks is to accept deposits from the public. Various sections of society and their needs and economic condition, deposit their savings with the banks.

The acceptance of deposits

The Acceptance of Deposits

This image is of acceptance of deposits

In that if savings are less than investment then… (156 more words) …

Question number: 35

» Money and Banking » Money and Functions

Essay Question▾

Describe in Detail

What is ‘barter system’? Explain ‘standard of deferred payment’ function of money.

Explanation

Barter: - Barter means Exchange of goods for other goods and services. It is exchange without the use of money as a currency. For example photographer agreeing to photograph a dentist’s wedding pictures in return for some dental work of equal value.

The standard of deferred payment is one type… (161 more words) …

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