NIOS Class 12 Economics Chapter 28 Money And Banking

NIOS Class 12 Economics Chapter 28 Money And Banking, Solutions to each chapter is provided in the list so that you can easily browse through different chapters NIOS Class 12 Economics Chapter 28 Money And Banking and select need one. NIOS Class 12 Economics Chapter 28 Money And Banking Question Answers Download PDF. NIOS Study Material of Class 12 Economics Notes Paper 318.

NIOS Class 12 Economics Chapter 28 Money And Banking

Also, you can read the NIOS book online in these sections Solutions by Expert Teachers as per National Institute of Open Schooling (NIOS) Book guidelines. These solutions are part of NIOS All Subject Solutions. Here we have given NIOS Class 12 Economics Chapter 28 Money And Banking, NIOS Senior Secondary Course Economics Solutions for All Chapters, You can practice these here.

Money And Banking

Chapter: 28

Module – XI: Money, Banking And Government Budget

TEXT BOOK QUESTIONS WITH ANSWERS

INTEXT QUESTIONS 28.1.

1. Under barter system a good was exchanged for coins. [True or False]

Ans. False.

2. Simran wants to have 6 pencils in exchange of a note book from Kavita. But Kavita is not agreeing to this condition. The problem may be related to lack of double coincidence of wants. [True or False]

Ans. False.

3. Ahmed took 10 kg of rice from Asghar last year as loan. Now he is willing to return the same. But Asghar is not accepting it. Give one possible reason for it.

Ans. Quality of rice may be lower/loss of interest.

INTEXT QUESTIONS 28.2.

Q. Which of the following statements are true and which are false?

(i) M₁ is a narrow measure and M is a broader measure of money supply.

Ans. True.

(ii) Currency notes and coins are not an important component of money supply.

Ans. True.

(iii) Supply of money is measured over a period of time.

Ans. False.

(iv) High powered money consists of cash with public, reserves with banks and other deposits with R.B.I.

Ans. True.

(v) Government has no role in producing high powered money in an economy.

Ans. True

INTEXT QUESTIONS 28.3.

Q. Which of the following statements are true and which are false?

(i) Commercial banks are controlled and operated only by the public sector.

Ans. False.

(ii) Rate of interest on savings account deposits is less than fixed deposits.

Ans. True.

(iii) Functions of commercial banks are rising day by day in modern economy.

Ans. True.

(iv) Overdraft facility is an important form of granting loan to the public by banks.

Ans. True.

(v) Increase in legal reserve ratio reduces credit creating power of commercial banks.

Ans. True.

INTEXT QUESTIONS 28.4.

Q. Which of the following statements are true and which are false?

(i) Central Bank is an apex bank in an economy.

Ans. True.

(ii) Central bank has little role in controlling and regulating the operations of commercial banks.

Ans. False.

(iii) Central bank acts as banker to the government.

Ans. True.

(iv) Central bank plays an important role in controlling and regulating money supply in an economy.

Ans. True.

(v) Quantitative methods of credit control influences the overall supply of money in an economy.

Ans. True.

(vi) Increase in bank rate reduces supply of money in an economy.

Ans. True.

(vii) During inflation the central bank increases bank rate and during deflation it reduces the bank rate.

Ans. True.

(viii) During inflation the central bank starts purchasing securities in the market.

Ans. False.

(ix) Selective credit control measures influence supply of money only in some sectors of the economy.

Ans. True.

(x) Credit rationing is an important form of selective credit control.

Ans. True.

TERMINAL EXERCISE