MONEY- BANKING IMPORTANT QUESTIONS CLASS 12

MONEY AND BANKING IMPORTANT QUESTIONS 

3-4 marks questions

1. What is difference between Bank Rate and Repo Rate?

1. Explain “Banker to the Government” function of the Central bank?
2. What are open market operations? What is their effect on availability of credit?
3. Explain the ‘lender of last resort’ function of central bank.
4. Distinguish between SLR and CRR. Explain the Role of SLR and CRR in credit control.
5. How does changes in Bank rate affect money creation by commercial Bank? Explain.
6. State the role of central Bank as a banker of the Government.
7. Explain ‘currency authority’ and ‘controller of credit’ functions of central bank.

1. Explain effect of increase in bank rate on credit creation by commercial banks.