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Subjects

Economics

Central bank and its functions

In this Class 12 Economics topic from Money and Banking, students learn how a central bank manages a country’s monetary and banking system. Using the Reserve Bank of India as a reference, they study its role as the issuer of currency, banker and adviser to the government, banker’s bank, lender of last resort, manager of foreign exchange reserves, and regulator of credit. The topic also explains tools such as the repo rate, bank rate, cash reserve ratio, and open market operations, and how these influence money supply, interest rates, inflation, and economic stability.

Easy · Level 1 · 2 questions

TOPIC PRACTICE

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2 questions

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  1. Kitchen of one family
  2. Rent of one shop
  3. Macroeconomics
  4. Only consumer taste
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  1. Because it affects the money and credit system
  2. Because it only runs schools
  3. Because it only decorates shops
  4. Because it only builds houses

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