CBSE Class 12 Economics Money And Banking Worksheet Set B

Read and download free pdf of CBSE Class 12 Economics Money And Banking Worksheet Set B. Download printable Economics Class 12 Worksheets in pdf format, CBSE Class 12 Economics Part B Macroeconomics Chapter 3 Money and Banking Worksheet has been prepared as per the latest syllabus and exam pattern issued by CBSE, NCERT and KVS. Also download free pdf Economics Class 12 Assignments and practice them daily to get better marks in tests and exams for Class 12. Free chapter wise worksheets with answers have been designed by Class 12 teachers as per latest examination pattern

Part B Macroeconomics Chapter 3 Money and Banking Economics Worksheet for Class 12

Class 12 Economics students should refer to the following printable worksheet in Pdf in Class 12. This test paper with questions and solutions for Class 12 Economics will be very useful for tests and exams and help you to score better marks

Class 12 Economics Part B Macroeconomics Chapter 3 Money and Banking Worksheet Pdf

 MONEY & BANKING
 
1. What is Money?
 
Money is anything that has the general acceptability as a common medium of exchange & as a common measure of the value of the commodities.
 
2. What is Barter system?
 
It refers to the exchange of goods for goods. In other words, it refers to the direct exchange of goods & services with another.
 
3. Explain the Functions of Money
 
The functions of money can be classified into Primary & Secondary functions.

Primary Functions
 
• Medium of Exchange: Money act as a common medium of exchange which is the most essential function as it enables us to identify money as a commodity which is generally acceptable to all. It facilitates the exchange of goods & services, & thus facilitates multilateral trade. Consequently, it helps us to avoid the problem of double coincidence of wants as the seller can sell his products & get money which can be used to purchase his desired product. Thus it facilitates smooth exchange system.
 
• Unit of Account: Money act as a common measure of value because it has the general acceptability & it has a stable value in itself. This helps in promoting the trade and industry in an economy, & helps in facilitating the exchange process
among the different sector. This enables the products to be measured in terms of monetary units, & thus, standardization & gradation of products take place.
 
• Money act as a Standard of Deferred payment: i.e. the payments to be made in future. Money serves as the measure by which the value of future payments is regulated, since its value is more or less stable & it has the wide acceptability. As a result, the credit function in the economy develops which makes an easier trade & industry.
 
• Money acts as a Store of Value being it is a common measure of value and generally accepted means of payments. This implies that the purchasing power can be shifted from its present to its future. Moreover, money is the most economic & convenient way of hoarding. This enables the people to save a part of their current income & store it for future use. Consequently, the capital formation takes place which promotes the production & productivity.
 
Money act as a transfer of value as it helps in transferring the value of assets from one person to another person & one place to another place. This is possible because money is the most liquid asset. This facilitates the mobility of labour and other inputs which in turn accelerates the economic growth & development.
 
4. Define the term Money Supply & state its constituents.
 
It refers to the total stock of money in an economy at any point of time, held by the general public i.e. the private individuals and business firms (money is in disposable form). In other words, it is the amount of money which is in circulation in an economy at a given point of time. The two constituents of money supply are currency held by the general public & demand deposits of general public held by the Commercial Banks. Thus, M = C + DD
 
5. What are the factors which determine the Money Supply?
 
Monetary Policy is one of the most important determinants of money supply. The dearer money policy leads to the decline in the money supply in the economy, & vice-versa. Policy of commercial Banks & their fund capacity decides the expansion or contraction of the supply of money. The capacity depends upon the availability of cash reserves in the banks. Larger the cash balance, the greater will be the volume of deposits & further greater the money supply.
 
Fiscal Policy of the Govt. also influences the money supply as this plays a vital role in regulating the money supply. When the Govt. adopts the Deficit budget policy, the money supply rises.
 
6. Define the term Commercial bank.
 
A Commercial bank is a financial institution which performs the function of accepting deposits from the public & advancing loans. This banks act as the financial intermediary between the idle resources & the productive sources of resources.
 
7. What are the different types of deposits held by the Commercial Banks?
 
(a) Current account deposits or Chequeable deposits which are payable on cheques & the depositors can withdraw their deposits whenever they like. This account is generally maintained by the traders for day to day transactions. The banks pay no interest on this deposit.
(b) Saving Account deposits are those deposits on which the bank pay interest which is less than the interest paid on the fixed deposits. The bank imposes some restrictions on their withdrawal. The purpose of this deposit is to encourage & mobilize the small savings.
(c) Fixed or Time Deposits refers to the deposits which are accepted for the specified period & which are not payable on demand before the expiry of the period. The bank pay relatively high rate of interest on this deposit.
(d) The variant of this deposit is Recurring Deposit whose purpose is to encourage regular savings by the people. This deposit is based upon the installment payment for a fixed period of time on which the interest is paid after maturity of the account.
 
8. Define the term Central Bank & explain its functions.
 
A Central Bank is an apex institution which directs, control, regulates & supervises the monetary system of a country. Central bank is the monetary authority which leads all banking & non – banking institutions. The name of the Central bank in India is Reserve Bank of India (RBI) which is established in 1935.The RBI occupies the highest position in the money & capital market. Functions of Central Bank
 
• Bank of Issue: It has the monopoly of issuing currency notes. It has the exclusive right to issue the currency notes in the country which leads to the uniformity of the currency throughout the nation. Moreover, this enables it to have a total control over the total money supply of the country which leads to the strengthening of the monetary policy during the crisis time.
 
Banker to Government: It act as a banker of the govt. as it accepts the deposits of the govt. & makes payment on behalf of the it, gives financial advices, & advances the loans in the crisis times, remit the surplus funds of Govt., purchase & sell Govt. securities on its behalf.
 
Banker’s Bank and Supervisor: It acts as a banker's bank in the form of lender of last resort, facilitates clearing house facilities & remit the surplus funds, supervise the banking activities & regulates credit-deposits of the Banks. Since RBI is the guardian of all the banks, the banks can get the benefit of easy & early credit during their financial requirements. As a facilitator of clearing, the RBI makes early settlement of financial claims & debts of the banks. As a result, the banks don't face any problem of cash liquidity, & thus they need not to remain depended on the bank credit or capital funds of the banks. As a regulator & supervisor, the banks are not in the position of any malpractice & the entire banking system remains transparent & accountable to public.
 
Custodian of Gold Reserves and Foreign Exchange: It acts as a custodian of gold reserves& the nation's stock of foreign exchange reserve. The purchase & sale of Gold & foreign exchange at the global level is done by RBI only. As a custodian, RBI is responsible for maintaining the stock of gold & forex reserves, & the determination of their prices.
 
Controller of Monetary Policy: It acts as a controller of credit which is one of the most important functions. Since it is an apex institution, therefore can play an effective role to combat or correct the inflationary or deflationary pressures of an economy. The RBI controls credit by using Quantitative (General) & Qualitative (Selective) credit control methods. The tools under quantitative methods are Bank/Repo rate, Reserve repo rate, CRR & SLR, Open market operations. Under selective methods, RBI use Margin, credit quota & rationing, moral suasion & direct action etc.
 
 

Please click on below link to download CBSE Class 12 Economics Money And Banking Worksheet Set B

Indian Economic Development Chapter 04 Poverty
CBSE Class 12 Economics Poverty Worksheet
Indian Economic Development Chapter 06 Rural Development
CBSE Class 11 Economics Rural Development Worksheet
Part A Microeconomics Chapter 05 Market Equilibrium
CBSE Class 12 Economics Market Equilibrium Worksheet
Part B Macroeconomics Chapter 01 Introduction to Macroeconomics
CBSE Class 12 Economics Introduction To Macroeconomics Worksheet

More Study Material

CBSE Class 12 Economics Part B Macroeconomics Chapter 3 Money and Banking Worksheet

The above practice worksheet for Part B Macroeconomics Chapter 3 Money and Banking has been designed as per the current syllabus for Class 12 Economics released by CBSE. Students studying in Class 12 can easily download in Pdf format and practice the questions and answers given in the above practice worksheet for Class 12 Economics on a daily basis. All the latest practice worksheets with solutions have been developed for Economics by referring to the most important and regularly asked topics that the students should learn and practice to get better scores in their examinations. Studiestoday is the best portal for Printable Worksheets for Class 12 Economics students to get all the latest study material free of cost.

Worksheet for Economics CBSE Class 12 Part B Macroeconomics Chapter 3 Money and Banking

Teachers of studiestoday have referred to the NCERT book for Class 12 Economics to develop the Economics Class 12 worksheet. If you download the practice worksheet for the above chapter daily, you will get better scores in Class 12 exams this year as you will have stronger concepts. Daily questions practice of Economics printable worksheet and its study material will help students to have a stronger understanding of all concepts and also make them experts on all scoring topics. You can easily download and save all revision Worksheets for Class 12 Economics also from www.studiestoday.com without paying anything in Pdf format. After solving the questions given in the practice sheet which have been developed as per the latest course books also refer to the NCERT solutions for Class 12 Economics designed by our teachers

Part B Macroeconomics Chapter 3 Money and Banking worksheet Economics CBSE Class 12

All practice paper sheet given above for Class 12 Economics have been made as per the latest syllabus and books issued for the current academic year. The students of Class 12 can be assured that the answers have been also provided by our teachers for all test paper of Economics so that you are able to solve the problems and then compare your answers with the solutions provided by us. We have also provided a lot of MCQ questions for Class 12 Economics in the worksheet so that you can solve questions relating to all topics given in each chapter. All study material for Class 12 Economics students have been given on studiestoday.

Part B Macroeconomics Chapter 3 Money and Banking CBSE Class 12 Economics Worksheet

Regular printable worksheet practice helps to gain more practice in solving questions to obtain a more comprehensive understanding of Part B Macroeconomics Chapter 3 Money and Banking concepts. Practice worksheets play an important role in developing an understanding of Part B Macroeconomics Chapter 3 Money and Banking in CBSE Class 12. Students can download and save or print all the printable worksheets, assignments, and practice sheets of the above chapter in Class 12 Economics in Pdf format from studiestoday. You can print or read them online on your computer or mobile or any other device. After solving these you should also refer to Class 12 Economics MCQ Test for the same chapter.

Worksheet for CBSE Economics Class 12 Part B Macroeconomics Chapter 3 Money and Banking

CBSE Class 12 Economics best textbooks have been used for writing the problems given in the above worksheet. If you have tests coming up then you should revise all concepts relating to Part B Macroeconomics Chapter 3 Money and Banking and then take out a print of the above practice sheet and attempt all problems. We have also provided a lot of other Worksheets for Class 12 Economics which you can use to further make yourself better in Economics

Where can I download latest CBSE Practice worksheets for Class 12 Economics Part B Macroeconomics Chapter 3 Money and Banking

You can download the CBSE Practice worksheets for Class 12 Economics Part B Macroeconomics Chapter 3 Money and Banking for the latest session from StudiesToday.com

Can I download the Practice worksheets of Class 12 Economics Part B Macroeconomics Chapter 3 Money and Banking in Pdf

Yes, you can click on the links above and download chapter-wise Practice worksheets in PDFs for Class 12 for Economics Part B Macroeconomics Chapter 3 Money and Banking

Are the Class 12 Economics Part B Macroeconomics Chapter 3 Money and Banking Practice worksheets available for the latest session

Yes, the Practice worksheets issued for Part B Macroeconomics Chapter 3 Money and Banking Class 12 Economics have been made available here for the latest academic session

How can I download the Part B Macroeconomics Chapter 3 Money and Banking Class 12 Economics Practice worksheets

You can easily access the links above and download the Class 12 Practice worksheets Economics for Part B Macroeconomics Chapter 3 Money and Banking

Is there any charge for the Practice worksheets for Class 12 Economics Part B Macroeconomics Chapter 3 Money and Banking

There is no charge for the Practice worksheets for Class 12 CBSE Economics Part B Macroeconomics Chapter 3 Money and Banking you can download everything free

How can I improve my scores by solving questions given in Practice worksheets in Part B Macroeconomics Chapter 3 Money and Banking Class 12 Economics

Regular revision of practice worksheets given on studiestoday for Class 12 subject Economics Part B Macroeconomics Chapter 3 Money and Banking can help you to score better marks in exams

Are there any websites that offer free Practice test papers for Class 12 Economics Part B Macroeconomics Chapter 3 Money and Banking

Yes, studiestoday.com provides all the latest Class 12 Economics Part B Macroeconomics Chapter 3 Money and Banking test practice sheets with answers based on the latest books for the current academic session

Can test sheet papers for Part B Macroeconomics Chapter 3 Money and Banking Class 12 Economics be accessed on mobile devices

Yes, studiestoday provides worksheets in Pdf for Part B Macroeconomics Chapter 3 Money and Banking Class 12 Economics in mobile-friendly format and can be accessed on smartphones and tablets.

Are practice worksheets for Class 12 Economics Part B Macroeconomics Chapter 3 Money and Banking available in multiple languages

Yes, practice worksheets for Class 12 Economics Part B Macroeconomics Chapter 3 Money and Banking are available in multiple languages, including English, Hindi