CBSE Class 12 Economics — Money and Banking

Read the following statements : Assertion (A) and Reason (R). Choose the correct option from those given below : Assertion (A) : Money is of perishable nature and is generally accepted by all at any point of time. Reason (R) : Money serves as a store of value, facilitating individuals to transfer purchasing power from the present to the future.

"In the Indian Banking System, the Statutory Liquidity Ratio (SLR) plays a vital role in controlling the credit creation capacity of the Commercial Banks, as it __________." (Choose the correct option to fill in the blank)

In an economy, the currency held by the public, Net Demand Deposits with Commercial Banks and Net Time Deposits with Commercial Banks stand at ` 1,42,000 crore, ` 22,000 crore and ` 86,000 crore respectively. The value of Money Supply (M1) would be ` __________ crore. (Choose the correct option to fill in the blank)

"Under the provisions stated in the Section 20 and Section 21 of the Reserve Bank of India (RBI) Act, 1934, the RBI is mandated to handle the banking operations of the Government of India." In the light of the given statement, elaborate the indicated function of the Reserve Bank of India.

Refer the given image carefully : Explain any two measures that can be taken by the Central Bank to control the indicated macroeconomic problem. Note : The following question is for the Visually Impaired Candidates only in lieu of Q. No. 15. State and explain any two measures that can be taken by the Central Bank to control the situation of deficient demand.