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Chapters
Chapter 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 Economics [English] Class 12 ISC chapter 14 - Banks: Commercial Bank and Central Bank - Shaalaa.com](/images/economics-english-class-12-isc_6:557367fb4d974c67badae9e1dbdc022d.jpg "Frank solutions for Economics [English] Class 12 ISC chapter 14 - Banks: Commercial Bank and Central Bank")
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Solutions for Chapter 14: Banks: Commercial Bank and Central Bank
Below listed, you can find solutions for Chapter 14 of CISCE Frank for Economics [English] Class 12 ISC.
Frank solutions for Economics [English] Class 12 ISC 14 Banks: Commercial Bank and Central Bank TEST YOURSELF QUESTIONS [Pages 272 - 275]
Select the correct option for each of the following questions.
Which one of the following is not a feature of demand deposits?
Money from these deposits are payable on demand.
Money from these deposits can be withdrawn by cheques without any restrictions on the amount or number of withdrawals.
Demand deposits accounts are mostly held by traders and businessmen.
Banks pay a nominal interest on deposits on these accounts.
Which of the following are the features of time deposits?
Money in these accounts is deposited for a specified period
These deposits are not payable on demand
The deposits in these accounts do not enjoy cheque facilities
All these features
Which of the following is not the agency function of the banks?
Making and collecting payments on behalf of their customers.
Providing lockers facilities.
Acting as the agent of their customers in the sale and purchase of stocks and shares.
Providing the services of buying and selling foreign currency.
Which of the following is not a limitation of credit creation?
Cash Reserve Ratio
Fiscal policy
Business conditions
Banking habit
Which of these is not a function of a central bank?
Accepting deposits from public at large
Issuing currency notes
Banker to banks
Maintaining foreign exchange reserves
Which one of the following is not a quantitative instrument of monetary policy?
Bank rate
Margin requirement
Open market operations
Cash Reserve Ratio
Which one of the following is not a qualitative (selective) instrument of monetary policy?
Credit rationing
Moral suasion
Bank rate
Margin requirements
Repo rate refers to ______.
The rate of interest at which RBI lends to the commercial banks
The rate of interest at which RBI borrows from the commercial banks
The rate of interest at which RBI lends to corporate houses
None of these
Very Short Answer Questions
What is a commercial bank?
Explain the different types of banks.
Explain three important functions of a commercial bank.
Name the types of deposit accounts of the commercial banks.
Explain discounting bills of exchange as one of the functions of the banks.
Distinguish between:
Demand deposit and Time deposit
What is meant by an overdraft facility given by a commercial bank?
Name the types of loans given by the commercial banks.
What is a credit multiplier?
Point out any three limitations to the credit creation by commercial banks.
State two points to illustrate the role of a bank in the economy.
What is a central bank?
How is a central bank a banker to the banks?
Central bank is the lender of the last resort. Explain.
Explain the 'Clearing House Function' of the central bank.
Bring out the methods of credit control.
What is the bank rate?
What is meant by open market operations?
What is a variable reserve ratio?
What is moral suasion?
Explain consumers credit.
What is monetary policy?
Distinguish between CRR and SLR.
What is the repo rate?
What is the reverse repo rate?
Short Answer Questions
What is Bank?
Explain the different types of banks.
Name the types of deposit accounts of the commercial banks.
Explain three important functions of a commercial bank.
Name the types of loans given by the commercial banks.
Name the types of deposit accounts of the commercial banks.
Explain briefly the five agency functions of a commercial bank.
Mention two differences between the Central Bank and a Commercial Bank.
Explain the functions of the Central Bank.
How does the central bank act as the banker to the government?
Explain the functions of the Central Bank.
Explain the functions of the Central Bank.
Explain the functions of the Central Bank.
Explain the functions of the Central Bank.
Explain the functions of the Central Bank.
Explain the ‘bank of issue’ function of a 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?
Explain the functions of the Central Bank.
Explain the 'Clearing House Function' of the central bank.
Differentiate between quantitative and qualitative methods of credit control.
Explain how ‘bank rate' is helpful in controlling credit creation?
Describe two quantitative credit control measures of the Central Bank.
Briefly explain how Cash Reserve Ratio can be used to control credit.
How does the Central Bank control credit through SLR?
Discuss two qualitative methods of controlling credit by a central bank in an economy.
What is the repo rate?
What is the reverse repo rate?
Long Answer Questions
Explain three important functions of a commercial bank.
Write the mechanism of credit creation by commercial banks.
Point out any three limitations to the credit creation by commercial banks.
How do commercial banks create credit?
Do commercial banks enjoy unlimited power to create credit? Discuss.
How do commercial banks create credit?
State two points to illustrate the role of a bank in the economy.
Explain the functions of the Central Bank.
Explain the functions 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.
Briefly explain two qualitative methods of credit control adopted by this institution.
Briefly explain two qualitative methods of credit control adopted by this institution.
Read the passage below and answer the questions that follow.
|
On the basis of an assessment of the macroeconomic situation in the economy, the Monetary Policy Committee of the RBI takes decisions about various policy rates. In recent years, these rates have been reduced to stimulate economic growth in the economy. Consequently, repo rates, reverse repo rates and cash reserve ratios were reduced. However, in view of the persistent inflationary pressure in the economy, the MPC has decided to increase the policy rates-mainly the repo rate to 4.9 per cent and Bank Rate to 5.1 per cent ensure that inflation remains within the target. CMPC minutes of June 8, 2022) |
- What is the function of the Monetary Policy Committee? [2]
- What are the two objectives of MPC? [2]
- Distinguish between repo rate and reverse repo rate. [2]
- Distinguish between Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). [2]
Thinking Beyond...
What is ‘quarterly monetary policy review’ of the Reserve Bank of India?
In recent times, there has been a difference of opinion between the RBI Governor and the Finance Minister. What is the basic point of difference?
What is the real interest rate?
The Indian government decided to demonetise the 1000 and 500 rupee notes on November 8, 2016. What do you understand by the policy of demonetisation?
Solutions for 14: Banks: Commercial Bank and Central Bank
Frank solutions for Economics [English] Class 12 ISC chapter 14 - Banks: Commercial Bank and Central Bank
Shaalaa.com has the CISCE Mathematics Economics [English] Class 12 ISC CISCE solutions in a manner that help students grasp basic concepts better and faster. The detailed, step-by-step solutions will help you understand the concepts better and clarify any confusion. Frank solutions for Mathematics Economics [English] Class 12 ISC CISCE 14 (Banks: Commercial Bank and Central Bank) include all questions with answers and detailed explanations. This will clear students' doubts about questions and improve their application skills while preparing for board exams.
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 Economics [English] Class 12 ISC chapter 14 Banks: Commercial Bank and Central Bank are Banking > Functions of Commercial Bank, Credit Creation by Commercial Banks, Central Bank, Central Bank as a Controller of Credit, Concept of Bank, Types of Bank, Role of Commercial Banks in an Economy, Commercial Banks, Comparison Between Central Bank and Commercial Banks, Methods of Credit Control, Quantitative Methods, Qualitative (Or Selective) Methods.
Using Frank Economics [English] Class 12 ISC solutions Banks: Commercial Bank and Central Bank exercise by students is an easy way to prepare for the exams, as they involve solutions arranged chapter-wise and also page-wise. The questions involved in Frank Solutions are essential questions that can be asked in the final exam. Maximum CISCE Economics [English] Class 12 ISC students prefer Frank Textbook Solutions to score more in exams.
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