**Chapter Notes - Money and Banking, Economics, Class 12**

Money and banking play a crucial role in the functioning of an economy. In the chapter on Money and Banking in Economics Class 12, several concepts related to money, banking, and the financial system are discussed. One such concept is numerical fill in the blanks.

**Numerical Fill in the Blanks**
Numerical fill in the blanks is a type of question where students are required to provide a numerical value to complete a sentence or statement. In the context of the chapter on Money and Banking, numerical fill in the blanks questions can be related to various aspects of the financial system, such as money supply, reserve ratios, money multiplier, etc.

**Example**
Let's consider an example of a numerical fill in the blanks question related to the money multiplier:

"The reserve ratio is 0.1. If the central bank injects an initial amount of 1000 units of currency into the banking system, the maximum increase in money supply will be _______."

To solve this numerical fill in the blanks question, we need to understand the concept of the money multiplier. The money multiplier represents the maximum increase in the money supply that can be achieved through the fractional reserve banking system.

**Solution**
To calculate the maximum increase in the money supply, we need to use the formula for the money multiplier:

Money Multiplier = 1 / Reserve Ratio

In this case, the reserve ratio is given as 0.1. Therefore, the money multiplier would be:

Money Multiplier = 1 / 0.1 = 10

Now, we can calculate the maximum increase in the money supply by multiplying the initial amount injected by the central bank with the money multiplier:

Maximum Increase in Money Supply = Initial Amount * Money Multiplier
= 1000 * 10
= 10,000 units of currency

Hence, the maximum increase in the money supply would be 10,000 units of currency.

**Conclusion**
Numerical fill in the blanks questions in the chapter on Money and Banking help students understand and apply various concepts related to the financial system. By solving these questions, students can strengthen their understanding of money supply, reserve ratios, money multiplier, and other essential aspects of the banking system.

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