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Chapters
1: Microeconomics and Macroeconomics: Introduction
2: Demand and Law of Demand
3: Theory of Consumer Behaviour: Marginal Utility and Indifference Curve Analysis
4: Elasticity of Demand
5: Supply - Law of Supply and Price Elasticity of Supply
6: Market Mechanism: Equilibrium Price and Quantity in a Competitive Market
7: Laws of Returns - Returns to a Factor and Returns to Scale
8: Cost and Revenue Analysis
9: Forms of Market
10: Producer's Equilibrium
11: Determination of Equilibrium Price and Output Under Perfect Competition
SECTION 2: THEORY OF INCOME AND EMPLOYMENT
12: Theory of Income and Employment
SECTION 3: MONEY AND BANKING
▶ 13: Money: Meaning and Functions
14: Banks: Commercial Bank and Central Bank
SECTION 4: BALANCE OF PAYMENTS AND EXCHANGE RATE
15: Balance of Payments and Exchange Rate
SECTION 5: PUBLIC FINANCE
16: Fiscal Policy
17: Government Budget
SECTION 6: NATIONAL INCOME
18: National Income and Circular Flow of Income
19: National Income Aggregates
20: Methods of Measuring National Income
SECTION 7: PROJECT WORK
21: Project Work
22: Model Short Answer Questions
![Frank solutions for इकॉनॉमिक्स [अंग्रेजी] कक्षा १२ आईएससी chapter 13 - Money: Meaning and Functions - Shaalaa.com](/images/economics-english-class-12-isc_6:872f47036b5c4267ae061d4279703803.jpg "Frank solutions for इकॉनॉमिक्स [अंग्रेजी] कक्षा १२ आईएससी chapter 13 - Money: Meaning and Functions")
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Solutions for Chapter 13: Money: Meaning and Functions
Below listed, you can find solutions for Chapter 13 of CISCE Frank for इकॉनॉमिक्स [अंग्रेजी] कक्षा १२ आईएससी.
Frank solutions for इकॉनॉमिक्स [अंग्रेजी] कक्षा १२ आईएससी 13 Money: Meaning and Functions TEST YOURSELF QUESTIONS [Pages 263 - 266]
Select correct option for each of the following questions: (1 mark each)
Which of the following are the unique characteristic features of money?
General acceptability
General purchasing power
Liquidity
All these
Which is the most widely used money in a modern economy?
Paper currency
Deposit money
Metallic money
Commodity money
Currency notes are a form of ______.
Fiat money
Legal tender
Inconvertible money
All the these
Which of these are the primary functions of money?
Medium of exchange
Measure of value
Store of value
Medium of exchange and Measure of value above
The function of money which allows a person to pay for a commodity at a future date is called as ______.
Unit of account
Measure of value
Standard of deferred payment
Medium of exchange
Which of the following is not included in the narrow definition of money supply?
Currency with the public
Demand deposits
Time deposits
All of these
Wider (broader) definition of money includes.
Currency with the public
Demand deposits with banks
Time deposits with banks
All of these
High-powered money (monetary base) consists of ______.
Currency held by public
Currency held by the banks in their vaults
Deposits held by the banks as reserves with the central bank
All of these
Money supply is a ______ concept.
Flow
Stock
Variable
All of these
Which of the following is the main source of money supply in an economy?
Central bank
Commercial banks
Government
Both central bank and commercial banks
Which of the following is legal tender money?
Demand deposits
Time deposits
Currency notes and coins
Inter bank deposits
Who regulates the money supply in India?
Government of India
RBI
NITI Aayog
None of these
Which of the following is issued by the Government of India?
Coins
₹500 note
₹1000 note
All the three
Which one of the following is the sole authority of issuing new currency in India?
Central Government
RBI
State Governments
None of these
Which two types of currency notes were demonetised in November, 2016 by the present government?
100 and 500 rupee notes
500 and 2000 rupee notes
1000 and 2000 rupee notes
500 and 1000 rupee notes
Which of the following notes were taken out of circulation by RBI in 2023?
2000 rupee notes
500 rupee notes
100 rupee notes
50 rupee notes
Match the correct pairs of items in Column 1 and Column 2.
| Column 1 | Column 2 |
| (1) Money supply | (a) Currency held by public, currency in the vaults of the banks and reserves with the central bank. |
| (2) High-powered money | (b) Stock of money at a point of time |
| (3) Standard of deferred payment | (c) Inflation arising from sharp rise in oil prices |
| (4) Supply shock | (d) Function of money |
Match the correct pairs of items in Column 1 and Column 2.
| Column 1 | Column 2 |
| (1) Token money | (a) Which cannot be converted into gold |
| (2) Fiat money | (b) Money the face value of which is more than its intrinsic value |
| (3) Limited legal tender | (c) Money which is accepted as legal tender upto a particular amount |
| (4) Inconvertible money | (d) Money which is issued on the order of the government |
Very Short Answer Questions (2 marks each)
What is meant by barter exchange?
Point out two shortcomings of the barter system of exchange.
Define or explain the following concept:
Double coincidence of wants
What is money?
What is meant by unlimited legal tender?
What is legal tender money?
What is fiat money?
Distinguish between currency and deposit money.
State the two primary functions of money.
Explain the secondary functions of money.
Explain the contingent functions of money.
State any three facts to highlight the importance of money.
Define money supply.
State the components of the supply of money.
State various measures of money supply used in India.
What is high-powered money?
Short Answer Questions (3 marks each)
What is money?
What are the different forms of modern money?
Distinguish between currency and deposit money.
Distinguish between limited legal tender and unlimited legal tender.
Distinguish between convertible paper money and inconvertible paper money.
Explain the following term:
Fiat money
Explain the following term:
Deposit money
Explain the following term:
Token money
State the two primary functions of money.
Explain the following function of money:
Medium of exchange
Explain the secondary functions of money.
Explain the secondary functions of money.
Explain the contingent functions of money.
Explain the following contingent function of money:
Employment of factor inputs
Explain the following contingent function of money:
Basis of credit system
What do you mean by the concept of money supply with the public?
Why does the concept of money supply not include money in the treasury of the government and money with the central and commercial banks?
Define the concept of money supply.
Explain the narrow definition (M1) of money supply.
Explain the meaning of M1 measures of money supply.
Explain the meaning of M4, measures of money supply.
Define inflation.
What is supply stock?
Long Answer Questions (6 marks each)
What is meant by barter exchange?
Write a short note on:
Difficulties in Barter Exchange (Barter System).
Define or explain the following concept:
Money
Explain primary, secondary and contingent functions of money.
Define money.
Explain the role of money in the functioning of a modern economy.
‘Money is indispensable for the functioning of market economy.’ Discuss this statement in the light of the importance of money in a free enterprise economy.
What is money supply?
State various measures of money supply used in India.
State various measures of money supply used in India.
Distinguish between demand pull inflation and cost push inflation.
Distinguish between wage-push and profit-push inflation.
Thinking Beyond...
In a modern economy, people use ‘plastic money’, like credit cards, to make many of their purchases on account of its convenience and safety. Is a credit card a form of money?
There are some financial assets which are called ‘near money’. Can you identify such financial assets?
What is cryptocurrency?
Solutions for 13: Money: Meaning and Functions
Frank solutions for इकॉनॉमिक्स [अंग्रेजी] कक्षा १२ आईएससी chapter 13 - Money: Meaning and Functions
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Further, we at Shaalaa.com provide such solutions so students can prepare for written exams. Frank textbook solutions can be a core help for self-study and provide excellent self-help guidance for students.
Concepts covered in इकॉनॉमिक्स [अंग्रेजी] कक्षा १२ आईएससी chapter 13 Money: Meaning and Functions are Introduction to Money and Inflation, Concept of Money, Features of Money, Barter system, Difficulties of Barter System of Exchange, Evolution of Money, Qualities of Good Money, Modern Forms of Money, Functions of Money, Primary Functions, Secondary Functions, Contingent Functions, Importance of Money, Supply of Money, Measures of Money Supply, Inflation, Types of Inflation, Introduction to Banking System, Types of Bank, Functions of Commercial Bank, Central Bank, Functions of Central Bank, Methods of Credit Control by the Central Bank, Quantitative Methods of Credit Control by the Central Bank, Qualitative Methods of Credit Control by the Central Bank, Difference Between the Central Bank and the Commercial Banks, Role of Banks in the Economy, Indian Monetary System, Constitutents of Money Supply, Reserve Bank of India's Approach of Money Supply, Factors Affecting Money Supply, Commercial Banks, Process of Credit Creation by Commercial Banking System, Factors Affecting Credit Creation, High Powered Money, Classification or Structure of Commercial Banks in India, Components of Money Supply, Evolution of Central Bank, Need for a Central Bank, Importance of Central Bank.
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