Macro: Money & Banking: Class 12 Previous Year Questions

Macro: Money & Banking questions asked in CBSE board exams

Repeated questions first. Open the free app to see each question as it appeared in the paper, with its marking scheme.

1. Read the following statements : Assertion (A) and Reason (R). Choose the correct option from those given below : 1 Assertion (A) : Money is of perishable nature and is generally accepted by all at any point of time. Reason (R) : Money serves as a store of valu…
   Board 20261 markAssertion-Reason
2.  8. Sumit deposited ` 10 lakh in his savings account. The deposits made by him is a part of ________ in the M1 measure of money supply. 1 (Choose the correct option to fill in the blank) Options : (A) Currency held by public (B) Interbank deposits (C) Demand …
   Board 20261 markMCQ
3. Refer the given image carefully : Explain any two measures that can be taken by the Central Bank to control the indicated macroeconomic problem. 4 Note : The following question is for the Visually Impaired Candidates only in lieu of.
   Board 20264 marksshort answer
4. ‘In an economy, the currency held by the public, Net Demand Deposits with Commercial Banks and Net Time Deposits with Commercial Banks stand at ` 1,42,000 crore, ` 22,000 crore and ` 86,000 crore respectively. The value of Money Supply (M1) would be ` ________…
   Board 20261 markMCQ
5.  12. (A) “When initial deposits in the credit creation process remains same, the total amount of credit created rises as the value of money multiplier increases.” Defend or refute the above statement with the help of hypothetical numerical example. 3 OR (B) “…
   Board 20263 marksshort answer
6. Read the following text carefully : “The Reserve Bank of India (RBI) announced a 50 basis point Repo Rate cut to 5.50% from 6%.” In the light of the given text and common understanding, answer the following questions : (i) Identify the economic issue indicated…
   Board 20264 markscase-based
7. Identify, that function of money, which has effectively solved the problem of ‘double coincidence of wants’ in a transaction. 1 Options : (A) Standard of deferred payments (B) Store of value (C) Measure of value (D) Medium of exchange
   Board 20261 markMCQ
8. “Under the provisions stated in the Section 20 and Section 21 of the Reserve Bank of India (RBI) Act, 1934, the RBI is mandated to handle the banking operations of the Government of India.” In the light of the given statement, elaborate the indicated function …
   Board 20263 marksshort answer
9.  1. In a two sector economy, the flow of factor payments moves from __________ to __________. (Choose the correct option to fill in the blanks) 1 (A) firms, households (B) firms, government (C) banks, households (D) households, firms { } 4  2.  …
   Board 20261 markMCQ
10.  9. “In the Indian Banking System, the Statutory Liquidity Ratio (SLR) plays a vital role in controlling the credit creation capacity of the Commercial Banks, as it __________.” (Choose the correct option to fill in the blank) 1 (A) ensures that all the depos…
    Board 20261 markMCQ
11. Identify, which one of the following is not a function of Reserve Bank of India as a bank, agent and advisor to the government. 1 Options : (A) Carries out banking business of the government. (B) Manages national debt. (C) Advises on financial matters. (D) Con…
    Board 20261 markMCQ
12. In the context of the Commercial Banks, which of the following statements are correct ? (Choose the correct option) (I) Deposits received are liabilities for Commercial Banks. (II) They are creator of credit in the economy. (III) They accept deposits from gene…
    Board 20251 markMCQ
13. (a) Justify the following statements with valid arguments : Money supply in an economy is an example of a stock variable. (i) government. OR (b) Assuming for a hypothetical economy, Central Bank increases the Reserve Ratio from 20% to 25% and the total primary…
    Board 20254 marksshort answer
14. The monetary policy is formulated by the. 1. in the Indian economy. (Choose the correct option to fill up the blank) Central Government (A) (B) State Governments Reserve Bank of India (C) (D) World Bank
    Board 20251 markMCQ
15. (A) On the basis of the given image, explain the steps which may be taken by the Government of India to control the indicated macro- economicissue. INFLATION INDIA (B)Define·Open Market Operations'. Note: The following questions are for the Visually Impaired C…
    Board 20254 marksshort answer
16. Irfaan (a student) borrows 80,000 to finance his college fee. He plans to begin repaying the loan six months after his graduation, making payments over a span of ten years." Based on above text, identify the indicated function of money. (Choose the correct opt…
    Board 20251 markMCQ
17. As the Banker to the Bank, Reserve Bank of India performs all functions (Choose the correct option to fill up the blank) except (A) Purchase and sale of securities on behalf of general public (B) Maintaining current account for Commercial Banks (C) Clearing an…
    Board 20251 markMCQ
18. Read the following text carefully : Union Food and Consumer Affairs Minister said that the Central Government has taken many proactive steps in the past few years to control retail prices of food items. He said that the government aims to keep inflation under …
    Board 20256 markscase-based
19. Suppose in an economy, primary deposits are R 500, if the Reserve Ratio is 25%. Estimate the total deposits created and the total lending by the banking system. ·iag· 15. (a) ; = 200 0.75( = , = 4000 (t) h lth h (TI) 16. : etail) 5.55% 120236.83% ( ( : h h (a)…
    Board 20254 marksshort answer
20. Reserve Bank of India undertakes the important function of managing the government s banking transactions. Discuss the above stated function performed by the Reserve Bank of India.
    Board 20244 marksshort answer

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