Goyal Brothers Prakashan solutions for इकॉनॉमिक्स [अंग्रेजी] कक्षा १० आईसीएसई chapter 8 - Central Bank [Latest edition]

In India, the Reserve Bank of India. (The central bank of the country) was nationalised in ______.

The main advantage of giving the monopoly right of note issue to the central bank is that it ______.

______ is the main function of central bank.

Identify which of the following is not the function of the central bank? 

Identify which of the following is not a function of the Reserve Bank of India? 

The central bank controls credit _____ .

______ is a quantitative method of credit control.

Which of the following is not a quantitative method of credit control?

Which of the following is not a function of a commercial bank? 

The central bank acts as ______.

In order to encourage investment in the economy, the central bank may ______.

The monetary policy generally targets to ensure ______.

Bank rate is the rate at which:

The process of buying and selling of securities by the central bank of a country is known as ______.

______ is the short term borrowing rate at which the Reserve Bank of India borrows money from the commercial banks.

In India, the Reserve Bank of India ______.

Settling the claims of various banks against each other by central bank is ______.

______ is the difference between the current value of the security offered for loans and value of loans granted.

Currency notes of ______ and ______ were banned on 8th November 2016.

The other name for demand deposit is ______.

______ is also called as the Lender of Last Resort.

Act of buying and selling of government securities by the central bank from and to the public is known as ______.

The apex bank which controls, regulates and supervises the activities of commercial bank is the ______.

______ deposits earn very low rate of interest on it.

Ms. Sakshi, an economics teacher, was explaining the concept of ‘minimum percentage of the total deposits to be kept by any commercial bank with the Central Bank of the country, as per norms and statute prevailing in the country. From the following, choose the correct alternative which specifies the concept explained by her?

When State Bank of India is under financial crisis and borrows money from Central Bank at a certain rate against approved securities, it will be called as ______.

Ms. Sakshi, who teaches economics, discussed the "minimum percentage of total deposits that commercial banks must maintain with the Central Bank according to current regulations. Select the correct term that defines this concept from the following choices.

Assertion (A): Central Bank is also known as the Bank of Issue.

Reason (R): Central Bank of India (RBI) enjoys the sole monopoly of issuing currency notes.

Assertion (A): Central Bank is also called as ‘Bankers Bank’.

Reason (R): Central Bank keeps the cash balances of commercial banks and gives loans to them on requirements, in the same manner as the commercial banks do for its consumers.

Statement (1): Bank rate is the rate of interest at which Central Bank lends to the commercial banks for long term.

Statement (2): Repo rate is the rate of interest at which Central Bank lends to commercial banks for their short term requirements.

Statement (1): Reserve Bank of India is the Central Bank of India.

Statement (2): Central Bank operates in public interest without profit motive.

Statement (1): An increase in CRR reduces the cash reserves of commercial banks.

Statement (2): Commercial banks are required to maintain CRR in the form of cash reserves.

Statement (1): SLR is determined by the central bank.

Statement (2): CRR is fixed by the commercial banks.

Statement 1: The Bank Rate policy of the central bank is a traditional method of credit control.

Statement 2: The method used by the central bank to influence the total volume in the banking system is a quantitative method of credit control.

Assertion (A): Central bank as a banker to the government, works as a custodian of foreign exchange reserves.
Reason (R): The Central bank acts as a Clearing house for the transfer and settlement of mutual claims of commercial banks.

What is a central bank?

Mention any two reasons for setting up the Reserve Bank of India.

Mention two differences between the Central Bank and a Commercial Bank. 

State two important functions of a central bank.

Explain "Banker to the Government" function of the Central Bank.

Give any two reasons for giving the monopoly right of note issue to the Central Bank.

What is meant by bank rate?

Explain the banker’s bank function of the Central Bank.

How does the central bank act as a lender as the last resort?

Define moral persuasion.

When credit is to be expanded, what kind of bank rate policy should the central bank of a country adopt?

What is meant by open market operations?

How do open market operations influence money supply?

Define the following term:

Cash Reserve Ratio.

Define the following term:

Margin Requirements.

Distinguish between CRR and SLR.

Discuss the role of the Central Bank as the fiscal agent to the government. 

Define the following term:

Cash Reserve Ratio.

Explain the role of Cash Reserve Ratio in controlling credit creation.

Define demonetisation.

Explain how credit rationing helps to control credit in an economy.

Mention two differences between the Central Bank and a Commercial Bank. 

Explain "Banker to the Government" function of the Central Bank.

Explain the banker’s bank function of the Central Bank.

Give any two reasons for giving the monopoly right of note issue to the Central Bank.

How does the central bank act as a lender as the last resort?

Explain the following function of the Central Bank:

Fiscal agent of the government.

Explain the following function of the Central Bank:

Advisor to the government.

Explain briefly the quantitative methods adopted by the Reserve Bank of India to control credit.

Briefly explain two qualitative methods of credit control adopted by this institution.

Describe two quantitative credit control measures of the Central Bank.

Describe two quantitative credit control measures of the Central Bank.

Differentiate between quantitative and qualitative methods of credit control.

Describe two quantitative credit control measures of the Central Bank.

Name the institution which enjoys the monopoly of note issue. Explain the following functions of this institution:

1. Bankers Bank
2. Banker to the Government

Define demonetisation.

Mention the objectives of demonetizations.

What is a central bank?

Give any two reasons as to why a country needs a central bank. 

Define bank rate.

What is meant by open market operations?

Define moral persuasion.

Give any two reasons for giving the monopoly right of note issue to the Central Bank.

Explain "Banker to the Government" function of the Central Bank.

Explain the banker’s bank function of the Central Bank.

How does the central bank act as a lender as the last resort?

What is meant by Legal Reserve Ratio?

Define the following term:

Cash Reserve Ratio.

Define the following term:

Margin Requirements.

Give an example of margin requirements.

What are quantitative methods of credit control?

Describe two quantitative credit control measures of the Central Bank.

Briefly discuss any two quantitative measures adopted by the Reserve Bank of India to control credit.

Name the institution which enjoys the monopoly of note issue. Explain the following functions of this institution:

1. Bankers Bank
2. Banker to the Government

Briefly explain two qualitative methods of credit control adopted by this institution.

Explain briefly the adverse impacts of demonetisation on the Indian economy.

Define bank rate.

How is Bank rate altered to correct a depression in an economy? 

Describe two quantitative credit control measures of the Central Bank.

Define demonetisation.