Revision Test

Class XII
Chapter -Money and Banking

1. State one drawback of barter system. (1M)

2. What will be the effect of rise in bank on money supply of a country. (1M)
3 . RBI is known as ‘Lender of the last resort’. Explain (3M)
4. How does the Central Bank control the availability of credit by open Market Operations? (3M)
5. Explain the process of money creation by a commercial bank using a hypothetical numerical example.
(4M)
6. What are the quantitative measures of money supply. Explain any two . (3M)