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Micheal Vaz solutions for Economics [English] 12 Standard HSC chapter 13 - Central Banking [Latest edition]

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Micheal Vaz solutions for Economics [English] 12 Standard HSC chapter 13 - Central Banking - Shaalaa.com
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Solutions for Chapter 13: Central Banking

Below listed, you can find solutions for Chapter 13 of Maharashtra State Board Micheal Vaz for Economics [English] 12 Standard HSC.


Exercise 1Exercise 2Exercise 3Exercise 4Exercise 5Exercise 6
Exercise 1 [Page 121]

Micheal Vaz solutions for Economics [English] 12 Standard HSC 13 Central Banking Exercise 1 [Page 121]

Exercise 1 | Q 1.1 | Page 121

Fill in the blank with appropriate alternatives given below

Central bank has the __________ of note issue.

  • monopsony

  • monopoly

  • duopoly

  • oligopoly

Exercise 1 | Q 1.2 | Page 121

Fill in the blank with appropriate alternatives given below

The central bank acts as a ____________ of cash reserves of the country.

  • head

  • leader

  • custodian

  • locker

Exercise 1 | Q 1.3 | Page 121

Fill in the blank with appropriate alternatives given below

Bank Rate is also called as __________ rate.

  • rediscount

  • market

  • general

  • exchange

Exercise 1 | Q 1.4 | Page 121

Fill in the blank with appropriate alternatives given below

____________ is the apex body of the monetary and banking systems of the nation's economy.

  • Commercial bank

  • Central bank

  • Government

  •  Co-operative bank

Exercise 1 | Q 1.5 | Page 121

Fill in the blank with appropriate alternatives given below

Reserve Bank of India was established in _____________.

  • 1937

  • 1939

  • 1935

  • 1934

Exercise 1 | Q 2 | Page 121

Match the following: 

Group A Group B
1. Central bank a. Quantitative measure of credit
2. Clearing house   b. Apex banking institution
3. Credit control    c. Deliberate buying and selling of government securities
4. Direct action  d. Selective method of credit control
5. Open market operations  e. Central bank
  f. Government
  g. S.L.R. (Statutory Liquidity Ratio)
Exercise 1 | Q 3.1 | Page 121

State whether the following statement is TRUE or FALSE.

Credit rationing is quantitative credit control measure of Central bank. 

  • True

  • False

Exercise 1 | Q 3.2 | Page 121

State whether the following statement is TRUE or FALSE.

Regulation of Consumer Credit is a quantitative credit control measure of Central Bank. 

  • True

  • False

Exercise 1 | Q 3.3 | Page 121

State whether the following statement is TRUE or FALSE.

Bank Rate is the selective credit control measure used by the Central Bank of the country. 

  • True

  • False

Exercise 1 | Q 3.4 | Page 121

State whether the following statement is TRUE or FALSE.

Central Bank also performs commercial banking business. 

  • True

  • False

Exercise 1 | Q 3.5 | Page 121

State whether the following statements is TRUE or FALSE.

The main objective of a Central Bank is to earn profit. 

  • True

  • False

Exercise 2 [Page 121]

Micheal Vaz solutions for Economics [English] 12 Standard HSC 13 Central Banking Exercise 2 [Page 121]

Exercise 2 | Q 1.1 | Page 121

Define or Explain the following concept.

Prof. Samuelson's definition of Central Bank 

Exercise 2 | Q 1.2 | Page 121

Define or Explain the following concept.

 Open Market Operation 

Exercise 2 | Q 1.3 | Page 121

Define or Explain the following concept.

Bank Rate 

Exercise 2 | Q 1.4 | Page 121

Define or Explain the following concept.

Moral suasion

Exercise 2 | Q 1.5 | Page 121

Define or Explain the following concept.

Cash Reserve Ratio 

Exercise 2 | Q 1.6 | Page 121

Define or Explain the following concept.

Clearing House System

Exercise 2 | Q 1.7 | Page 121

Define or Explain the following concept.

Central Bank as Bank of Issue 

Exercise 2 | Q 2.1 | Page 121

Give reason or explain.

Clearing house system economises the use of cash. 

Exercise 2 | Q 2.2 | Page 121

Give reason or explain.

Central Bank acts as a lender of the last resort. 

Exercise 2 | Q 2.3 | Page 121

Give reason or explain.

The CRR affects the lending capacity of the banks. 

Exercise 2 | Q 2.4 | Page 121

Give reason or explain.

As a banker to the government, the Central Bank transfers government funds. 

Exercise 2 | Q 2.5 | Page 121

Give reason or explain.

A Central Bank may take 'Direct Action' against the defaulting commercial banks. 

Exercise 3 [Pages 121 - 122]

Micheal Vaz solutions for Economics [English] 12 Standard HSC 13 Central Banking Exercise 3 [Pages 121 - 122]

Exercise 3 | Q 1.1 | Page 121

Distinguish between:

Central Bank and Commercial Bank

Exercise 3 | Q 1.2 | Page 121

Distinguish between:

Quantitative Credit Control Measures and Qualitative Credit Control Measures

Exercise 3 | Q 1.3 | Page 121

Distinguish between:

Bank Rate and Open Market Operations

Exercise 3 | Q 1.4 | Page 121

Distinguish between:

Cash Reserve Ratio and Statutory Liquidity Ratio

Exercise 3 | Q 2.1 | Page 122

Write short note on:

Definition of a Central Bank 

Exercise 3 | Q 2.2 | Page 122

Write short note on:

Issuing Directives 

Exercise 3 | Q 2.3 | Page 122

Write short note on:

Central Bank's measure of regulation of consumer credit 

Exercise 3 | Q 2.4 | Page 122

Write short note on:

Regulation of Margin Requirements

Exercise 3 | Q 2.5 | Page 122

Write Short note on : 
Cash Reserve Ratio (CRR)

Exercise 3 | Q 2.6 | Page 122

Write short note on:

Bank Rate 

Exercise 3 | Q 2.7 | Page 122

Write short note on:

Open Market Operations (OMO) 

Exercise 4 [Page 122]

Micheal Vaz solutions for Economics [English] 12 Standard HSC 13 Central Banking Exercise 4 [Page 122]

Exercise 4 | Q 1.1 | Page 122

Answer the following question:

“Central Bank of the country has the monopoly of note issue.” Explain. 

Exercise 4 | Q 1.2 | Page 122

Answer the following question:

How does a Central Bank (for example RBI) transfer funds from one place to another? Illustrate. 

Exercise 4 | Q 1.3 | Page 122

Answer the following question:

Explain the Data Collection and Publicity functions of the Central Bank.

Exercise 4 | Q 1.4 | Page 122

Answer the following question:

What are the various measures of quantitative credit control?

Exercise 4 | Q 1.5 | Page 122

Answer the following question:

What are the various measures of qualitative credit control? 

Exercise 5 [Page 122]

Micheal Vaz solutions for Economics [English] 12 Standard HSC 13 Central Banking Exercise 5 [Page 122]

Exercise 5 | Q 1.1 | Page 122

State with reason whether you agree or disagree with the following statement.

Central Bank is the Bank of Issue. 

Exercise 5 | Q 1.2 | Page 122

State with reason whether you agree or disagree with the following statement.

A co-operative bank acts as a lender of the last resort. 

Exercise 5 | Q 1.3 | Page 122

State with reason whether you agree or disagree with the following statement.

Credit control is the function of the Central Bank of the country. 

Exercise 5 | Q 1.4 | Page 122

State with reason whether you agree or disagree with the following statement.

Central Bank is a profit-making institution. 

Exercise 5 | Q 1.5 | Page 122

State with reason whether you agree or disagree with the following statement.

Central Bank having monopoly of note issue is most appropriate institute of the government. 

Exercise 6 [Page 122]

Micheal Vaz solutions for Economics [English] 12 Standard HSC 13 Central Banking Exercise 6 [Page 122]

Exercise 6 | Q 1 | Page 122

Answer in detail.
What are the qualitative measures of credit control? 

Exercise 6 | Q 2 | Page 122

Answer in detail.
Explain the functions of the Central Bank. 

Exercise 6 | Q 3 | Page 122

Answer in detail.
Explain Regulation of consumer credit as a qualitative measure of the Central Bank of India. 

Solutions for 13: Central Banking

Exercise 1Exercise 2Exercise 3Exercise 4Exercise 5Exercise 6
Micheal Vaz solutions for Economics [English] 12 Standard HSC chapter 13 - Central Banking - Shaalaa.com

Micheal Vaz solutions for Economics [English] 12 Standard HSC chapter 13 - Central Banking

Shaalaa.com has the Maharashtra State Board Mathematics Economics [English] 12 Standard HSC Maharashtra State Board solutions in a manner that help students grasp basic concepts better and faster. The detailed, step-by-step solutions will help you understand the concepts better and clarify any confusion. Micheal Vaz solutions for Mathematics Economics [English] 12 Standard HSC Maharashtra State Board 13 (Central Banking) include all questions with answers and detailed explanations. This will clear students' doubts about questions and improve their application skills while preparing for board exams.

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Concepts covered in Economics [English] 12 Standard HSC chapter 13 Central Banking are Definition - Central Bank, Central Bank Function - Banker's Bank, Central Bank Function - Controller of Credit, Monetary Function of Central Bank, Non Monetary Function of Central Bank, Method of Credit Control - Quantitative, Repo Rate and Reverse Repo Rate, Central Bank Function - Goverment Bank.

Using Micheal Vaz Economics [English] 12 Standard HSC solutions Central Banking exercise by students is an easy way to prepare for the exams, as they involve solutions arranged chapter-wise and also page-wise. The questions involved in Micheal Vaz Solutions are essential questions that can be asked in the final exam. Maximum Maharashtra State Board Economics [English] 12 Standard HSC students prefer Micheal Vaz Textbook Solutions to score more in exams.

Get the free view of Chapter 13, Central Banking Economics [English] 12 Standard HSC additional questions for Mathematics Economics [English] 12 Standard HSC Maharashtra State Board, and you can use Shaalaa.com to keep it handy for your exam preparation.

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