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Money and Banking: SEBA Class 10 Economics (Social Science) answers
Get here notes, textbook solutions, answers, MCQs, pdf, questions for Political Science and Economics (social science) chapter 1 Money and Banking of class 10 (HSLC) for students studying under the Board of Secondary Education, Assam (SEBA). These notes/answers, however, should only be used for references and modifications/changes can be made wherever possible.
Introduction
The evolution of money is an intriguing story. Money cannot be any commodity or substance. Certain characteristics must be present in money. Money can perform certain functions as a result of these characteristics. There are various types of money. Money is very important in the economic system. Money has eliminated the drawbacks of the barter system. Of course, money has its own set of issues. Money is created by the banking system. The Central Bank is in charge of all banks. The Reserve Bank of India is the country’s central bank. There are various types of banks, each with its own set of functions. Certain financial institutions exist outside of the country’s banking system. These are referred to as Non-Banking Financial Institutions (NBFIs) or Intermediaries. There are distinctions between banks and non-bank financial institutions.
Textual questions and answers
Very short answer type questions of Money and Banking
1. What is barter?
Answer: Barter is the direct exchange of commodities against commodities.
2. What is money?
Answer: According to Geoffrey Crowther anything that is generally acceptable to one and all as a medium of exchange is money.
3. Mention one important function of money.
Answer: One important function of money is money performs the function of a medium of exchange.
4. Give an example of non-legal tender money.
Answer: Cheque money is an example of non-legal tender money.
5. What is representative paper money?
Answer: When paper money is convertible into gold or silver of equivalent value then it is called representative paper money.
6. What is a bank?
Answer: Bank is a financial institution that deals in loans.
7. In which year was the Reserve Bank of India set up?
Answer: The Reserve Bank of India was set up in 1935.
8. What is a current deposit?
Answer: Current deposit or savings is that kind of deposit that may be withdrawn by the depositor or saver at any time.
Short answer type questions of Money and Banking
1. How does the lack of double coincidence of wants create problems in the barter system?
Answer: The barter system is hampered by the double coincidence of wants. There will be no commodity exchange if one individual does not produce or has the commodity that the other individual desires. For example, if a person wants rice in exchange for sugarcane, but the other person with whom he is supposed to barter does not have rice, but instead has fish. Problems will arise in the barter system as a result of this.
2. What is meant by the store of value?
Answer: Value for goods and services is referred to as a store of value. Value is stored up in the sense that commodities are stored up so that the stored up commodity can be exchanged against other commodities as and when such a transaction is required. Some commodities, such as cloth and rice, have a higher store of value because they do not perish in a short period of time because they are stored up. Commodities such as eggs and fish, on the other hand, perish faster and have a lower store of value.
3. Which characteristic of money is the most important one and why?
Answer: The most important characteristic of money is Money must have general acceptability. This is the most important feature because general acceptability means acceptance by all. It is supported by the law of the land.
4. What is the liquidity of money?
Answer: Liquidity of money means direct and immediate convertibility of money into goods and services that the holder of money wants. The degree of liquidity of money is the maximum. Land, gold, silver etc also have liquidity but their liquidity is less than that of money as these are not directly or immediately convertible into goods and services.
5. ‘Money is the common unit of measurement of the value of goods and services.’ Explain.
Answer: Liquidity of money refers to the direct and immediate conversion of money into goods and services desired by the holder of money. Money’s liquidity is at its peak. Land, gold, silver, and other commodities have liquidity, but it is less than money’s because they are not directly or immediately convertible into goods and services.
6. What is the difference between limited and unlimited legal tender?
Answer: Limited legal tender money is money that is only acceptable up to a certain amount of transaction value. Transactions can be of either low or high value. Unlimited legal tender money, on the other hand, is money that can be used as a medium of exchange for transactions of any value.
7. What are the functions of Regional Rural Banks?
Answer: The functions of Regional Rural Banks are:
i. To provide low-interest loans to the villagers and free them from the clutches of private money lenders who charge exorbitant interest rates.
ii. Mobilizing rural savings and investing them in a variety of productive activities.
8. How are the Non-Banking Financial Institutions different from the banks?
Answer: There are two main differences between Banks and Non-Banking Financial Institutions (NBFI):
i. Depositors in banks can withdraw funds via check; depositors in non-banking financial institutions cannot.
ii. There is a Deposit Insurance Scheme in place to protect depositors in the case of banks; such schemes do not exist in the case of non-banking financial institutions.
Long type questions of Money and Banking
1. Explain four demerits of the barter system.
Answer: Four demerits of the barter system are explained below:
i. Lack of double coincidence of wants: When there is a lack of double coincidence of wants, the barter system does not work. For example, suppose a person wants rice in exchange for sugarcane, but the other person with whom he is supposed to barter does not have rice but instead has fish. As a result, a problem will arise in the barter system.
ii. It lacks a common unit of account: The value of each commodity in the barter system must be expressed in terms of the value of another commodity. For instance, one apple is exchanged for three mangoes. Similarly, for other commodities to be exchanged in the market, it is impossible for the consumer to remember the various exchange rates.
iii. Indivisibility: When commodities are indivisible, the barter system is rendered ineffective. A piece of bread, for example, cannot be exchanged for an elephant. Because the elephant’s rate is much higher than the rate of bread, and the elephant is also not divisible. As a result, only the barter system works in the case of divisible items.
iv. It lacks a store of value of goods and services: Value is stored up in the barter system in the sense that the stored up commodity can be exchanged against other commodities as and when such a transaction is required. However, the issue is that commodities are perishable. Some perish sooner, such as eggs and fish, while others perish later, such as clothes and rice.
2. Explain any four characteristics of money.
Answer: Four characteristics of money are explained below:
i. Money must be widely accepted: Money must be widely accepted as a medium of exchange.
ii. Money must be cognizable: There should be no difficulty identifying money. Transactions will be difficult if money is not easily identifiable.
iii. Money must be durable: Because perishable commodities such as fish and eggs are perishable, they cannot be used as money. Money cannot be saved if it is perishable. There will be no store of value in that case, and saving will be impossible.
iv. Money must be divisible: High-value money must be convertible into low-value money. There is enough money to settle transactions of any size, large or small.
3. Explain four major functions of money.
Answer: Four major functions of money are explained below:
i. Money performs the function of a medium of exchange: Commodities are exchanged indirectly through money in a money economy. The person who produces rice will sell rice (the first transaction), and the money earned will be used to purchase cloth (second transaction). As a result, money becomes the medium of exchange.
ii. Money acts as a standard of measurement of values of goods and services: Prices exist for all economic goods. Price is the value in exchange expressed in terms of money. Money is the most widely used unit of measurement. Prices are the only way to express the value of all economic goods and services.
iii. Money acts as a standard of deferred payments: Deferred payments are payments made later rather than at the time the product or service is delivered to the customer. It accepts commodities on credit. All such payments are accounted for in monetary terms.
iv. Money functions as the store of value: Commodity money cannot be saved because it is not durable. Saving in the form of commodity money is not possible. One of the characteristics of money is its durability. Money can be used to store the value of goods and services.
4. Is cheque money? Give reasons for your answer.
Answer: No, a cheque is not money.
A cheque is not considered legal tender. When the general acceptability of money as a medium of exchange is undermined by a lack of legal backing, it is referred to as non-legal tender money. A person may refuse to accept payment by cheque. There has been no violation of the law. A cheque is a monetary claim.
5. Mention four problems associated with money.
Answer: The following are four problems associated with money:
i. When money loses its value stability, a slew of problems can arise. For example, if the value of money continues to fall, consumers will have to spend more money in order to purchase the same amount of goods and services from the market.
ii. Money can be used as a tool to facilitate the concentration of economic power and wealth. Money can easily become a means of acquiring economic power in an economy where money is everything.
iii. A lack of money may be the root of the social value system’s demise. Corruption, irregularities, and various forms of injustice are the end results of degrading values.
iv. When money becomes black money, the economy suffers in a variety of ways. For example, large-scale tax evasion may cause the government to lose a significant amount of revenue.
6. Explain any four functions of the Central bank.
Answer: The following are four functions of the Central bank:
i. The Central Bank issues currency: This is the Central Bank’s monopoly right, as no other bank in the country has this right.
ii. The Central Bank is the bankers’ bank: The Central Bank audits all member banks’ accounts. When banks face a financial crisis, it is the Central Bank that steps in to assist them.
iii. The central bank acts as a clearing house for member banks, facilitating inter-bank lending and borrowing. The Central Bank is in charge of all member banks’ accounts. At the central banking level, all transactions between lending and borrowing banks are cleared.
iv. The central bank has a promotional role: it promotes socio-economic development by allocating funds to priority sectors of the economy. In India, for example, the Central Bank provides funds for the development of the agricultural sector.
7. Explain any two major functions of the commercial banks.
Answer: Two major functions of the commercial banks are explained below:
i. Savings are mobilised by the commercial bank: There are three types of savings: a) current savings or deposits, b) fixed savings or deposits, and c) savings deposits. The depositor may withdraw current savings or deposits at any time. Fixed deposits are non-transferable and cannot be withdrawn at any time. In the event of a withdrawal, prior notification is required. One part of a savings deposit can be withdrawn at any time, while the other part can only be withdrawn with the bank’s permission.
ii. Commercial banks provide loans: Many people, such as farmers, artisans, and industrialists, can apply for and receive loans from commercial banks. The proper use of bank loans improves the people’s economic situation.
8. Briefly explain any two functions of each of the following:
(i) IDBI
(ii) RRBs
(iii) NABARD
(iv) SIDBI
Answer: (i) IDBI: IDBI stands for Industrial Development Bank of India. Two functions of IDBI are:
i. IDBI provides industrial loans at a low-interest rate to businesses in underserved areas of the country.
ii. The IDBI promotes entrepreneurship through a variety of training programmes.
(ii) RRBs: RRB stands for Regional Rural Banks. The following are two functions of RRBs.
i. To provide low-interest loans to the villagers and free them from the clutches of private money lenders who charge exorbitant interest rates.
ii. Mobilizing rural savings and investing them in a variety of productive activities.
(iii) NABARD: NABARD stands for National Bank for Agriculture and Rural Development. Two main functions of NABARD are:
i. NABARD is the apex financial institution among all institutions involved in rural investment and production.
ii. NABARD simplifies the loan application process, monitors and evaluates the progress of various rural schemes, and organises training programmes for beneficiaries.
(iv) SIDBI: SIDBI stands for Small Industrial Development Bank of India. Two main functions of SIDBI are:
i. To encourage the modernization and application of advanced technology in small businesses.
ii. To develop markets for the products of small businesses.
Additional/extra questions and answers/solutions
1. What is a barter system?
Answer: The barter system is a system in which goods are directly exchanged for goods.
2. What is an exchange?
Answer: The term exchange can be simply understood as ‘give and take’.
3. What is money?
Answer: Money is a medium of exchange, a measure of value or a store of value.
4. What do you mean by money of account?
Answer: Money of account refers to the account in which all of a country’s sales and purchases of goods and services are recorded.
5. What is actual money?
Answer: Actual money is the money which circulates among the citizens of a country.
6. Differentiate between convertible and inconvertible paper money?
Answer: Convertible paper money is money that can be converted to metallic money or metals whereas Inconvertible paper money is money that cannot be converted into metallic money or metal.
7. What is token money?
Answer: When the face value of money exceeds its metallic value, it is referred to as token money.
8. What is flat money?
Answer: The money issued by the government’s authority is known as flat money.
9. What is legal tender money?
Answer: Legal tender money is money that is acceptable according to rules or laws.
10. What is credit money or deposit money?
Answer: The bank deposits created by commercial banks are called deposit money or credit money.
11. Can a cheque be considered money?
Answer: No, a cheque cannot be considered money because it is neither legal nor actual money.
12. Differentiate between inflation and deflation?
Answer: Inflation is defined as a persistent rise in the price level or a decline in the value of money. On the other hand, deflation is defined as a persistent drop in the price level or a rise in the value of money.
13. What is a commercial bank?
Answer: It is a financial institution which accepts deposits from individuals or organisations. It also provides financial services and gives loans to other individuals.
14. What is a bank deposit?
Answer: Bank deposits are amounts of cash stored in commercial banks as savings. There are three kinds of bank deposits: current accounts, savings accounts and fixed deposits.
15. Mention the year when 14 commercial banks of India were nationalised?
Answer: In the year 1969, 14 commercial banks in India were nationalised.
16. By which name is the Central Bank of India known?
Answer: The Central Bank of India is known as the Reserve Bank of India.
17. Mention two drawbacks of the barter system?
Answer: Two drawbacks of the barter system are:
i. Lack of double coincidence of wants: In any given society, it is difficult to find two people’s desires that coincide with each other. For the barter system to work, the desires of two people must coincide.
ii. Difficulties in determining value: In the barter system, measuring value is a major issue. There is no universal measure of value. In such a case, it is impossible to express all goods in terms of a single monetary unit.
19. Explain in brief the lack of double coincidence of wants?
Answer: It is difficult to find two people’s desires that coincide in any changing society. Two people’s goods must be acceptable to each other. In the absence of a double coincidence of wants, the barter system fails to function. For instance, one person wishes to acquire rice in exchange for cloth, while another wishes to acquire cloth in exchange for rice. In this case, both people rely on each other and their desires are fulfilled. The exchange will be possible due to the double coincidence of desires. However, if the owner of the cloth wants mustard oil instead of rice, the desires of these two persons will not coincide, and the barter exchange will not take place.
21. What are the four functions of money?
Answer: The four functions of money are:
i. Medium of exchange: The primary function of money. Money is used as a medium of exchange for various goods and services.
ii. Measure of value: The value of all goods and services is determined by money.
iii. Store of value: People set aside a portion of their earnings for future use as savings. Money grows in value over time, and saving money is also simple.
iv. Standard of deferred payments: Money serves as the medium of exchange for all transactions such as lending and borrowing. The modern economic system cannot function solely on current transaction activities.
22. Write three negative effects of money on society.
Answer: Three negative effects of money on society are:
i. As a result of unequal distribution of money income, the gap between rich and poor continues to widen.
ii. Money leads to greed and corruption. It also leads to social and economic crimes which causes a decline in moral values in society. Lust for money is the reason for the increase in the number of unaccounted money or black money.
iii. Money may lose stability in its value. In such a case, the economy may experience inflation or deflation which contributes to economic insecurity.
23. Mention two primary functions of the Central Bank.
Answer: Two primary functions of the Central Bank are:
i. Issue of paper currency: The Central Bank is the only one with the authority to print paper money. In order to do so, the central bank must keep a certain amount of gold on hand at all times. The reserve requirements have been liberalised at the moment. The notes are issued in accordance with the minimum reserve system. A certain amount of gold foreign exchange must be held in reserve.
ii. Banker to the Government: The Central Bank acts as:
(a) The supplier of funds to the government
(b) The financial adviser to the government and
(c) The fiscal agent of the government.
24. Write two functions of the Commercial Bank.
Answer: The two functions of the Commercial Bank are:
i. Acceptance of Deposits: The amounts of savings kept in commercial banks are called bank deposits. There are three different types of bank deposits: current, savings and fixed deposits.
ii. Advancing of Loans: Commercial banks make money by lending money to agriculture, industries, businesses, individuals, and organisations. Banks earn interest on these loans. In general, commercial banks make short-term loans. After deducting a portion of the depositors’ primary deposits for cash reserves, banks may use the remainder of the deposits for lending.
25. Write three objectives of bank nationalisation in India.
Answer: The objectives of bank nationalisation in India are:
(a) To provide cheap credit to agriculture
(b) To rapidly expand bank branches in rural areas and
(c) To maintain monopoly control over banks.
26. Write a brief note on the regional rural banks.
Answer: Agriculture is vital to the Indian economy as about 70% of India’s population lives in rural areas whose main livelihood depends on agriculture. Despite actively participating in development programmes, commercial banks are fundamentally profit-driven financial institutions. Therefore, in India, the rural bank scheme was implemented in 1976. In Assam, five regional rural banks were established in 1976 namely Lakhimi Gaonlia Bank, Pragjyotish Gaonlia Bank, Subansiri Gaonlia Bank, Cachar Gramin Bank, and Dihangi Gaonlia Bank. Regional rural banks established themselves as the banks of the poor and backward classes. Assam Gramin Vikash Bank absorbed the state’s regional rural banks in 2006.
27. Briefly mention the drawbacks of the co-operative movement in India.
Answer: The co-operative societies Act was adopted in India in 1904 which laid the foundation of the co-operative movement in the country. Given below are the various reasons for the drawback of the cooperative movement in India.
i. Village co-operative societies are financially insecure, with a meagre fund.
ii. The non-realisation of outstanding loans continues to rise.
iii In the absence of participation by the weaker sections, cooperative societies are formed among some wealthier and more influential persons in the society.
iv. Co-operative societies have failed to solve the problem of rural indebtedness.
v. In the absence of properly trained people, society’s management has been weak, corrupt, and motivated by personal interest.
vi. The lack of popularity is the root cause of the cooperative movement’s failure. If the cooperative movement in India is not popularised among the general public, its success is unlikely.
28. What is a development bank? Write two of its objectives.
Answer: Development banks are not a general type of bank. These banks specialise in providing economic and industrial development services. The development banks have two main goals i.e to provide banking services through credit extension and to promote economic development through a variety of other services.
29. Outline the primary functions of development banks.
Answer: The primary functions of development banks are as follows:
i. To provide medium and long-term credit to industries.
ii. To provide risky capital.
ii. To provide funding for new issues.
iii. To serve as a guarantee for short-term loans.
iv. To make arrangements for foreign exchange loans.
Extra/additional MCQs
1. What is the main problem when there is a lack of double coincidence of wants in a barter system?
A. Interdependence B. Exchange of goods C. Trading issues D. Production problems
Answer: C. Trading issues
Q. Why does the barter system lack a common unit of account?
A. Indivisibility B. Perishable goods C. Value is stored in commodities D. Each commodity’s value is expressed in terms of another commodity
Answer: D. Each commodity’s value is expressed in terms of another commodity
Q. What is the problem associated with indivisibility in a barter system?
A. High-value transactions B. Exchange of goods C. Lack of double coincidence D. Exchange of commodities like an elephant against a piece of bread
Answer: D. Exchange of commodities like an elephant against a piece of bread
Q. In a money economy, how is the problem of indivisibility resolved?
A. Barter B. Double coincidence C. Use of durable money D. Money is divisible
Answer: D. Money is divisible
Q. What makes saving difficult in a barter system?
A. Value storage B. Commodity perishability C. Indivisibility D. Lack of double coincidence
Answer: B. Commodity perishability
Q. How does a money economy solve the issue of saving difficulty in a barter system?
A. Money is perishable B. Money is durable C. Money is indivisible D. Money cannot be stored
Answer: B. Money is durable
Q. In a money economy, where can an individual keep their savings?
A. In commodities B. In goods C. In the bank D. In exchange for services
Answer: C. In the bank
Q. What is the primary disadvantage of the barter system concerning the value of commodities?
A. Commodities are not perishable B. Commodities are indivisible C. Value is not stored up in commodities D. Commodities are perishable
Answer: D. Commodities are perishable
Q. What was the first stage in the evolution of money?
A. Coinage B. Metallic Standard C. Barter System D. Paper Money
Answer: C. Barter System
Q. What was the medium of exchange during the animal standard stage?
A. Gold B. Silver C. Goats D. Commodities
Answer: C. Goats
Q. What was one of the main problems with using animals as a medium of exchange?
A. Indivisibility B. Homogeneity C. Durability D. Value
Answer: B. Homogeneity
Q. What metals were used during the metallic standard stage?
A. Copper and Iron B. Bronze and Zinc C. Gold and Silver D. Lead and Tin
Answer: C. Gold and Silver
Q. What was a problem with using gold and silver as money?
A. Lack of coins B. Security risk C. Oversupply D. Inflation
Answer: B. Security risk
Q. Why was coinage considered inconvenient as commerce expanded?
A. Lack of value B. Security risk C. Difficult to carry D. Over supply
Answer: C. Difficult to carry
Q. In what stage of evolution was paper money first introduced?
A. Third Stage B. Fourth Stage C. Fifth Stage D. Sixth Stage
Answer: C. Fifth Stage
Q. What type of paper money is in use today?
A. Convertible B. Non-representative C. Gold-backed D. Silver-backed
Answer: B. Non-representative
Q. Are cheques considered as money?
A. Yes B. No C. Sometimes D. Rarely
Answer: B. No
Q. Which of the following is not considered as money?
A. Debit cards B. Gold coins C. Paper money D. Silver bars
Answer: A. Debit cards
Q. According to Geoffrey Crowther, what makes something money?
A. Durability B. General acceptability C. Cognizability D. Divisibility
Answer: B. General acceptability
Q. What characteristic of money ensures its immediate convertibility into goods and services?
A. Durability B. Homogeneity C. Liquidity D. Cognizability
Answer: C. Liquidity
Q. What property of money allows for high-value money to be converted into low-value money?
A. Divisibility B. Transferability C. Cognizability D. Liquidity
Answer: A. Divisibility
Q. In a scenario where the value of money falls continuously, what property of money would it fail to maintain?
A. Cognizability B. Divisibility C. Liquidity D. Stability of value
Answer: D. Stability of value
Q. What are the primary functions of money?
A. Medium of exchange and standard of measurement B. Standard of deferred payments and store of value C. Medium of exchange and store of value D. Standard of measurement and standard of deferred payments
Answer: A. Medium of exchange and standard of measurement
Q. Which of these is NOT one of the secondary functions of money?
A. Standard of deferred payments B. Medium of exchange C. Store of value D. Standard of measurement
Answer: D. Standard of measurement
Q. What is the key characteristic of money that allows for saving?
A. Divisibility B. Durability C. Cognizability D. Homogeneity
Answer: B. Durability
Q. What would likely replace money as a store of value if the value of money falls rapidly?
A. Livestock B. Gold or silver C. Commodities D. All of the above
Answer: B. Gold or silver
Q. Which feature ensures money’s ease of use for settling transactions over expanding markets?
A. Cognizability B. Transferability C. Homogeneity D. Liquidity
Answer: B. Transferability
Q. If money were perishable, which of its functions would it fail to perform?
A. Medium of exchange B. Store of value C. Standard of measurement D. Standard of deferred payments
Answer: B. Store of value
Q. What are the two broad types of money?
A. Legal and Non-legal B. Commodity and Animal C. Metallic and Paper D. Money-of-account and Money proper
Answer: D. Money-of-account and Money proper
Q. What is the difference between money-of-account and money proper?
A. Conceptual vs. Physical form B. Domestic vs. Foreign C. Old vs. New D. Legal vs. Illegal
Answer: A. Conceptual vs. Physical form
Q. What type of money were animals, particularly goats, used as?
A. Commodity money B. Animal money C. Black money D. Paper money
Answer: B. Animal money
Q. Which type of money replaced metallic money due to its ease of carrying?
A. Animal money B. Paper money C. Commodity money D. Black money
Answer: B. Paper money
Q. What type of money is supported by the law of the land and refusal to accept it would be a violation of the law?
A. Commodity money B. Legal tender money C. Metallic money D. Non-legal tender money
Answer: B. Legal tender money
Q. Legal tender money can be of what two types?
A. Easy and Dear money B. Limited and Unlimited C. Black and White D. Hot and Cold
Answer: B. Limited and Unlimited
Q. What type of money is no longer a claim against gold or silver, but is money in its own right?
A. Commodity money B. Inconvertible paper money C. Legal tender money D. Metallic money
Answer: B. Inconvertible paper money
Q. What type of money can be used for transactions of any value?
A. Easy money B. Limited legal tender C. Unlimited legal tender D. Hot money
Answer: C. Unlimited legal tender
Q. What was the medium of exchange during the barter system?
A. Commodity money B. Metallic money C. Paper money D. Animal money
Answer: A. Commodity money
Q. What type of money was gold and silver used as?
A. Animal money B. Commodity money C. Metallic money D. Paper money
Answer: C. Metallic money
Q. What type of money has no legal support and can be refused without violating any laws?
A. Fiat money B. Legal tender money C. Non-legal tender money D. Token money
Answer: C. Non-legal tender money
Q. What type of money is supported by the authority or the power of the state?
A. Fiat money B. Token money C. Non-legal tender money D. Cheque money
Answer: A. Fiat money
Q. When is money considered token money?
A. When its face value exceeds its intrinsic value B. When it is based on metallic value C. When it is not supported by law D. When it is black money
Answer: A. When its face value exceeds its intrinsic value
Q. What is the name given to money that leaves a country due to socio-economic disorder and uncertainty?
A. Hot money B. Dear money C. Standard money D. Black money
Answer: A. Hot money
Q. What is the term used to refer to money that becomes expensive due to central banking action?
A. Black money B. High power money C. Easy money D. Dear money
Answer: D. Dear money
Q. What is Black money according to the provided information?
A. Money on wings B. Cheap money C. Money generated through economic offences D. Inconvertible paper money
Answer: C. Money generated through economic offences
Q. What type of money becomes cheaper when the Central Bank reduces the interest rate?
A. Hot money B. Dear money C. Easy money D. Black money
Answer: C. Easy money
Q. What is the term used to refer to the part of total money supply in the country which is under the direct control of the Central Bank?
A. Hot money B. High power money C. Black money D. Dear money
Answer: B. High power money
Q. Which money is a claim against money and is increasingly used as a means of payment?
A. Token money B. Fiat money C. Cheque money D. Black money
Answer: C. Cheque money
48. What is the unit of money in India?
A. Rupee B. Dollar C. Euro D. Yen
Answer: A. Rupee
Notes are very good
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