Class 12 Macro Economics - Chapter Money and Banking NCERT Solutions | Do you consider a commercial bank &lsquo

What is a barter system? What are its drawbacks?

What are the alternative definitions of money supply in India?

What are the main functions of money? How does money overcome the shortcomings of a barter system?

What is transaction demand for money? How is it related to the value of transactions over a specified period of time?

What is money multiplier? What determines the value of this multiplier?

What is High Powered Money?

What are the instruments of monetary policy of RBI?

Explain the functions of a commercial bank.

What role of RBI is known as ‘lender of last resort’?

What is a ‘legal tender’? What is ‘fiat money’?

What is marginal propensity to consume? How is it related to marginal propensity to save?

Explain why public goods must be provided by the government.

Differentiate between balance of trade and current account balance.

What are the four factors of production and what are the remunerations to each of these called?

What is the difference between microeconomics and macroeconomics?

What is the difference between ex ante investment and ex post investment?

Distinguish between revenue expenditure and capital expenditure.

What are official reserve transactions? Explain their importance in the balance of payments.

Why should the aggregate final expenditure of an economy be equal to the aggregate factor payments? Explain.

What are the important features of a capitalist economy?

What are the four factors of production and what are the remunerations to each of these called?

Does public debt impose a burden? Explain.

Discuss the issue of deficit reduction.

Discuss some of the exchange rate arrangements that countries have entered into to bring about stability in their external accounts.

Explain why the tax multiplier is smaller in absolute value than the government expenditure multiplier.

Define budget deficit and trade deficit. The excess of private investment over saving of a country in a particular year was Rs 2,000 crores. The amount of budget deficit was ( – ) Rs 1,500 crores. What was the volume of trade deficit of that country?

Explain ‘Paradox of Thrift’.

Why should the aggregate final expenditure of an economy be equal to the aggregate factor payments? Explain.

Why is the open economy autonomous expenditure multiplier smaller than the closed economy one?

Give the relationship between the revenue deficit and the fiscal deficit.