NCERT Solutions Class 12 Economics Banking

NCERT Solutions Class 12 Economics Banking with answers available in Pdf for free download. The NCERT Solutions for Class 12 Economics with answers have been prepared as per the latest syllabus, NCERT books and examination pattern suggested in Standard 12 by CBSE, NCERT and KVS. Solutions to questions given in NCERT book for Class 12 Economics are an important part of exams for Grade 12 Economics and if practiced properly can help you to get higher marks. Refer to more Chapter-wise Solutions for NCERT Class 12 Economics and also download more latest study material for all subjects

Banking Class 12 NCERT Solutions

Class 12 Economics students should refer to the following NCERT questions with answers for Banking in standard 12. These NCERT Solutions with answers for Grade 12 Economics will come in exams and help you to score good marks

Banking NCERT Solutions Class 12

NCERT Solutions Class 12 Economics Banking. NCERT book for Economics in class 12 is strongly recommened by teachers and the CBSE and NCERT boards. Please download the NCERT solutions for class 12 Economics free in PDF made by teachers of the best schools in India. These solutions are carefully compiled to give detailed understanding of the concepts and also steps of solutions. The NCERT solutions are free to download in pdf format. Please refer to the download link below to download the pdf file and also refer to other chapters and subjects to get the solutions to Economics NCERT book questions and exercises.

Chapter - Banking

1. Explain the functions of a commercial bank?

Ans: Deleted from syllabus.

2. What is money multiplier? How will you determine its value? What ratios play an important role in the determination of the value of the money multiplier? [3-4 Marks] 

Ans:

1. When the primary cash deposit in the banking system leads to multiple expansion in

the total deposits, it is known as money multiplier or credit multiplier.

2. The value of Money Multiplier =1/LRR

where LRR = Legal Reserve Ratio.

3. Legal Reserve Ratio: It is the minimum ratio of deposits legally required to be kept by the commercial banks with themselves and with the central bank.

4. So, there are two ratios which play an important role in the determination of the value of the money multiplier. They are:

(a) Cash Reserve Ratio: It refers to the minimum percentage of a bank’s total deposits, which it is required to keep with the central bank.

(b) Statutory Liquidity Ratio: It refers to minimum percentage of net total demand and time liabilities, which commercial banks are required to maintain with themselves.

3. What are the instruments of monetary policy of RBI? How does RBI stabilize money supply against exogenous shocks? [6 Marks]

Ans:

1. Principal instruments of Monetary Policy or credit control of the Central Bank of a country(RBI) are broadly classified as:

(a) Quantitative Instruments,

• Bank Rate

• Repo rate

• Reverse Repo rate

• Open Market Operations (OMO)

• Varying Reserve Requirements (fa) Qualitative Instruments

• Imposing margin requirement on secured loans

• Moral Suasion

• Selective Credit Controls (SCCs)

Please click on link below to download NCERT Solutions Class 12 Economics Banking.

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