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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.

Medium · Level 1 · 4 questions

TOPIC PRACTICE

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4 questions

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  1. Money supply and credit control
  2. The food choice of one customer
  3. The colour of one shop
  4. The taste of one commodity
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  1. Money, credit and interest rates
  2. Design of clothes
  3. Shop boards
  4. Personal food choices
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  1. Price stability and smoother economic activity
  2. The decoration of one shop
  3. The taste of one good
  4. The breakfast of one family
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  1. Deciding the rent of one shop
  2. Supporting economic stability through money and credit
  3. Changing one consumer's preference
  4. Deciding the packaging of one good

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