Money And Banking is a chapter that briefly explains about the monetary system. This chapter comprises of various concepts barter system, barter economy, difficulties of barter system, money, functions of money – primary function, secondary function of money, contingent functions , fiat money, fiduciary money, money supplier, high powered money, banking, commercial bank, central bank, functions of commercial bank, functions of central banks (RBI), cash reserve ratio (CRR), statutory reserve ratio (SLR).
Frequently asked Questions on CBSE Class 12 Microeconomics Notes Chapter 3: Money and Banking
Wha is ‘fiduciary money’?
Fiduciary money refers to money backed up by trust between the payer and payee.
What are the types ‘commercial bank’?
1. Public sector banks.2. Private sector banks.3. Foreign banks.
What are the functions of RBI?
1. Issue of Bank Notes.2. Banker to the Government.3. Custodian of the Cash Reserves of Commercial Banks.4. Custodian of country’s forex reserves.5. Lender of last resort.6. Controller of credit.