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Revision Notes

Money And Banking — Revision Notes

ICSE · Class 12 · Economics

Money And Banking revision notes for ICSE Class 12 Economics: 4 topics in quick points. Part of the ICSE Class 12 Economics syllabus.

70 questions60 flashcards7 formulas & key relations5 concepts

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Key Topics to Revise

1

1. Money: Meaning, Types, and Functions

  • Barter economy is called a C-C economy, where C stands for commodity.
  • Barter exchange suffered from problems such as double coincidence of wants, lack of a common measure of value, difficulty in future payments, storage problems, and lack of divisibility.
  • The word money comes from the Latin word Moneta, the surname of the Roman goddess Juno.
2

2. Supply of Money and Measures of Money Supply

  • Supply of money is the total stock of money held by the public at a point of time.
  • Supply of money is a stock variable, not a flow variable.
  • Money held by government, RBI, and the banking system is excluded from money supply because it is not in circulation with the public.
3

3. Inflation and Value of Money

  • Inflation means a persistent rise in prices of goods and services at a fast pace.
  • Inflation is a rise in prices, not merely a high price level.
  • A one-time rise in prices does not count as inflation.
4

4. Commercial Banks: Meaning, Functions, and Credit Creation

  • A commercial bank is a financial institution that accepts deposits from the public and gives loans for consumption and investment.
  • Two essential conditions for a financial institution to be a commercial bank are accepting chequable demand deposits and lending.
  • Commercial banks are also called joint stock banks.

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Full Notes

Key Concepts

Barter economy is called a CMoney is anything that is generallyImportant kinds of money include legalMoney has primary functionsSupply of money is the total

Frequently Asked Questions

What are the important topics in Money And Banking for ICSE Class 12 Economics?
Key topics in Money And Banking include Money: Meaning, Types, and Functions, Supply of Money and Measures of Money Supply, Inflation and Value of Money, Commercial Banks: Meaning, Functions, and Credit Creation. Study these first, then practise questions on each for the ICSE Class 12 board exam.
How should I revise Money And Banking for the ICSE Class 12 board exam?
Learn the core ideas first, then work through the 70 practice questions on Money And Banking. Revise definitions regularly and use flashcards for quick recall before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

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All ICSE Class 12 Economics Revision Notes

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