📘 Class 11 Economics – Sample Paper
Chapter 3: Money and Banking
🔷 Section A – Statistics for Economics (40 Marks)
Very Short Answer Questions
Q1 – Q10 (1 × 10 = 10 marks)
Answer in one or two lines.
Q1. What is money?
Q2. Define the medium of exchange.
Q3. Name any one form of commodity money.
Q4. What is fiat money?
Q5. Define the term ‘liquidity’.
Q6. Give one example of a near money asset.
Q7. What is a commercial bank?
Q8. Define credit creation.
Q9. What is meant by central bank?
Q10. Write one limitation of money as a store of value.
Short Answer Questions
Q11 – Q16 (3 × 6 = 18 marks)
Answer in 60–80 words.
Q11. Distinguish between commodity money and fiat money.
Q12. Explain any three functions of money.
Q13. State the importance of liquidity in an economy.
Q14. Explain any three limitations of barter system.
Q15. What is the role of commercial banks in an economy?
Q16. Why is the central bank called the ‘lender of last resort’?
Long Answer / Numerical Questions
Q17 – Q18 (6 × 2 = 12 marks)
Q17. Explain the role of money in economic development. OR Calculate the credit multiplier from given data.
Q18. Describe the steps involved in the process of credit creation by commercial banks.
🔷 Section B – Indian Economic Development (40 Marks)
Very Short Answer Questions
Q19 – Q28 (1 × 10 = 10 marks)
Answer in one line.
Q19. When was the Reserve Bank of India established?
Q20. Name any two functions of the Reserve Bank of India.
Q21. What is meant by inflation?
Q22. Define deflation.
Q23. Name one instrument of monetary policy.
Q24. What is demand deposit?
Q25. What is meant by legal tender?
Q26. Name one Indian coin with the highest denomination in circulation.
Q27. Which sector receives the maximum credit from commercial banks?
Q28. Name one initiative by RBI to promote digital payments.
Short Answer Questions
Q29 – Q34 (3 × 6 = 18 marks)
Answer in 60–80 words.
Q29. Explain the functions of money in an economy.
Q30. Describe the role of commercial banks in rural development.
Q31. Explain the concept and impact of inflation.
Q32. Describe the functions of the Reserve Bank of India.
Q33. Explain the difference between cash credit and overdraft facility.
Q34. How does monetary policy affect the Indian economy?
Long Answer Questions
Q35 – Q36 (6 × 2 = 12 marks)
Q35. Explain the evolution of money in India. OR Describe the major problems of the Indian banking system.
Q36. Why is an effective banking system important for economic growth? Explain.