Scanner Chapter 5 & 6: Money and Banking (Macro Economics) | Economics Class 12 - Commerce PDF Download

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Money

Q1. Give the meaning of money.  

Q2. State the two components of the money supply.  

Q3. How does money solve the problem of double coincidence of wants? 

Q4. How does money overcome the main problem of exchange in the barter system? Explain 

Q5. Explain the ‘medium of exchange function of money. 

Q6. How does money solve the problem of double coincidence of wants ?

Q7. Describe the following functions of money:-  

• Medium of exchange 
• Standard of deferred payment

Q8. Explain any two functions of money. 

 Banking

Q1. Explain briefly the “ banker to Govt function “ of the Central bank.

Q2. Explain the four main functions of the Central Bank.

Q3. Explain briefly the “ Currency authority function “ of the Central bank.

Q4. Explain briefly the “ Lender Of Last Resort function “ of the Central Bank.

Q5. How does a central bank perform the function of the controller of credit?

Q6. What is a commercial bank?

Q7. Explain the ‘banker to the government’ function of the central bank.

Q8. State the role of the central bank as a banker to the government. 

Q9. Explain any two functions of a central bank.

General Questions

Q1. Explain the ‘banker to the government’ function of the central bank.

Q2. How does a commercial bank create money ? ‘

or

Explain how ‘ open market operations’ by the central bank affect money creation by commercial banks.

Q3. Explain the process of money creation by commercial banks.

Q4. Explain the function of a Central Bank as a banker to the government.

or

Explain the open market operations method of credit control used by a Central Bank

Q5. Explain the following functions of the central bank :

(i) Bank of the issue (ii) Bankers’ bank

Q6. Explain the ‘lender of last resort function of the central bank.

or

Explain the ‘government’s banker’ function of the central bank.

Q7. Explain the ‘lender of last resort function of the Central Bank.

Q8. Explain the credit creation role of commercial banks with the help of a numerical example.

Q9. What are time deposits?

Q10. State the components of the supply of money.

Q11. Explain the ‘medium of exchange function of money. How has it solved the related
problem created by barter?

Q12. Explain the ‘unit of account function of money. How has it solved the related problem created by barter?