Important Questions and answer class 12 Economics chapter 2 | Money And Banking
Money And Banking :- In this blog we will know about the class 12 economics chapter 2 important questions And all the questions are taken from important questions from XamIdea and important Questions from oswaal mcq class 12 And previous year Questions and many more so from this you can get more idea that how to score higher in your exam Examnoteshub provides all the important questions for class 12 , bcom and important MCQ for CUET and many more So lets Begin :-
Also Check :-
MCQ Questions for Class 12 Economics Chapter 1
Important Questions and answer class 12 Economics chapter 1
CBSE Class 12 Macro Economics Important Questions Chapter – Money And Banking
Question 1 : – what is Barter System of Exchange ?
Answer :- Barter system of exchange is a system where goods are exchanged for another goods. no need of money for the transactions and no any middle things in this barter system Exchange .
Question 2 :- Discuss on the topic of types of Money ?
Answer :- Types of Money are given below :-
- Fiat Money: Fait Money is a money that is issued by order of the government like notes , coins and many others
- Fiduciary Money: fiduciary money is that money which works with mutual trust between the payer and the payee
- Full Bodied Money: full bodied money is a money that is in the terms of coins whose commercial value is equal to money value from the time when the money is issued .
- Credit Money: credit money is the money in which money value is bigger than the commodity values .
Question 3 :- Define Bank Rate ?
Answer :- Bank Rate is a rate in which central banks offers loan to the commercial banks by discounting there securities and this is also known as Discount Rate .
Question 4 :- What is Moral suasion ?
Answer :- Moral suasion means to persuasion as well as pressure excercised bt central bank on the commercial banks to the restricted and selective in lending during inflation , and to be liberal in lending during deflation .
Question 5 :- Explain the “banker to the government ” Functions of Central bank ?
Answer :- Central bank as a banker , and agent and financial advisor to the government and it keeps accounts of all the government banks and manage Government treasuries . the loan are also given to the government without any type of interest for short – term of period . central bank also transfer the government funds and it also buy and sells securities , treasury bills on the behalf of government and it advice government about there financial , economics and monetory metters .
Question 6 :- Government of India has recently Launch the “jan-dhan Yojana ” aimed at every household in country to have at least one bank account explain how deposits made under the plan are going to affect national income of the country
Answer :- Government has launched Jan dhan Yojana for providing millions of household to open their bank account in the country this enhance primary deposit of the commercial bank it is basis on their primary deposit and their cash deposit that the bank are able to create secondary deposit expansion of cash deposits leads to expansion of credit creation capacity of commercial bank it helped to increase in the creation of credit implies an increase in availability of credit in the market this is expected to raise the demand for credit for investment purpose higher investment leads to increase in national income of the country
Question 7 :- Explain the problem of double coincidence of bonds faced under barter system how has money solved it ?
Answer :- The problem of double coincidence of wants me the good in a possession of Two different individual are needed by each other but is difficult to find a person who wants your goods and same processes with who wants to buy that you are selling accordingly under the barter system exchanged renamed extremely limited money as a medium of exchange has removed the major difficulty of double coincidence it means that money at an intermediary for the goods and services in exchange of transaction in the monetary system act of sale and purchase of goods and service are separated from each other if one wants to buy good he can do with money and if you want to sell then you can do with the help of medium term known as money .
Question 8 :- Discuss on the topic of evolution of money ?
Answer :- Evolution of money is the overcome the difficulties of man invented money a thing that was commonly expected as a medium of exchange is money initially metal coin of gold and silver was introduced subsequently alloy metal came to be used for coinage beside the introduction of paper money But now is the age of plastic money in the form Of debit card and credit card does money find its own need to facilitate exchange hence it comes to define a thing that a commonly accepted medium of exchange is money
You May also Like :-
National Income and Related Aggregates Important Questions
Conclusion : Money and Banking
Thanks for reading this article hope we fulfill your requirement all are the above questions of Economics money and banking important questions are most important and if there is any doubt and you want help then you can comment and our team provide you solution of that you want Exam notes hub is a community that provides educational notes and many more stuffs so kindly help us by share with your friends .