NCERT CLASS12-ECONOMICS MONEY AND BANKING PART III
1.Definition of Bank , Banking And Commercial Bank.
2.Functions of commercial Banks
3.Credit creation by Commercial Banks
4.Types of commercial Banks
5.Significance of Commercial Banks
6.Meaning of Central Bank
7.Functions of a central bank
8.Comparison b/w central & commercial Bank.
A. It accepts deposits
Current A/C deposits
Fixed term deposits
Savings A/C deposits
B. It gives loans and advances(Particularly to businessmen & entrepreneurs and thereby earn interest)
cash credit
Demand loans
short-term Loans
C. Overdraft facility
D. Discounting bills of exchange or hundies
E. Agency functions of the bank
F. Financing of foreign trade
G. Performing general utility services.
Significance of commercial banks
They promote savings and accelerate the rate of capital formation.
They are source of finance and credit for trade and industry.
They promote balanced regional development by opening branches in backward areas.
Bank credit enables entrepreneurs to innovate and invest which accelerates the process of economic development.
Help commerce and industry to expand their field of operation.
Credit creation.
Q1.What is barter?
Q2.How does use of money overcome the Drawbacks of barter?
Q3.What is the main function of money in an economic system?
Q4.What monetary system does India follow?
Q5.What is money supply And various money stock measures?
Q6.What is banking?
Q7.Functions of commercial and central bank?
Q8.Define liquidity trap?
Q9.What is credit money?
Q10.Distinguish b/w narrow and broad money
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