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Money And Banking

ICSE · Class 12 · Economics

Quick revision notes for Money And Banking — ICSE Class 12 Economics. Key concepts, formulas, and definitions for last-minute revision.

70 questions60 flashcards5 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?
Money And Banking covers several key topics that are frequently asked in ICSE Class 12 board exams. Focus on the core concepts listed on this page and practise related questions to build confidence.
How to score full marks in Money And Banking — ICSE Class 12 Economics?
Understand the core concepts first, then work through the 70 practice questions available for this chapter. Revise formulas and 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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