Courses

Courses for Kids

Free study material

Store

Talk to our experts

1800-120-456-456

Sandeep Garg Macroeconomics Class 12 Solutions Chapter 6

Commerce

Sandeep Garg Macroeconomics Class 12 Solutions Chapter 6

Class 12 Macroeconomics Sandeep Garg Solutions Chapter 6 - Banking - Commercial Banks and The Central Bank

Chapter 6 in the Macroeconomics syllabus for Class 12 is ‘Banking- Commercial Banks and the Central Bank’. Commercial banks are financial institutions which accept deposits, extend loans, and offer other financial services such as CDs (Certificate of Deposits), current account, saving account, etc. to individuals and entities.

On the other hand, the central bank holds the highest control over production, distribution, and supply of currency in an economy. In Sandeep Garg class 12 Macroeconomics solutions chapter 6, you will find a detailed explanation on both of these institutions.

Sandeep Garg Macroeconomics Class 12 Solutions Chapter 6

Importance of Class 12 Chapter 6 Banking - Commercial Banks and the Central Bank Free PDF Download

Chapter 6 of Macroeconomics for Class 12 contains topics related to banking, especially commercial banks and the central banks. Though the purpose of both the banks is somewhat similar, the functioning of both the commercial and the central banks is slightly different. In simple terms, Commercial banks are financial institutions which accept deposits, extend loans, and offer other financial services such as CDs (Certificate of Deposits), current account, saving account, etc. to individuals and entities. While on the other hand the central bank holds the highest control over production, distribution, and supply of currency in an economy.

In this chapter, one will get to learn the different aspects of the banks in detail.

Important Topics Included in the Class 12 Macroeconomics Sandeep Garg Solution Chapter 6 PDF

Here are some important topics which form a part of Chapter 6 in Macroeconomics solutions:

CRR

CRR stands for Cash Reserve Ratio. It is a mandatory proportion of deposit which commercial banks must reserve in the form of cash. This deposit is made by the commercial banks to the Reserve Bank of India. Thus, CRR is decided by the RBI and announced through Monetary Policies (based on reviews conducted every 6 weeks). In class 12 Macroeconomics Banking Commercial Banks and the Central Bank chapter, you will find a thorough discussion on CRR.

SLR

SLR stands for Statutory Liquidity Ratio. SLR is the mandatory proportion of deposits which commercial banks must reserve in the form of liquid assets (apart from cash). Liquid assets could include gold, treasury bills, government bonds, securities, etc. The Reserve Bank of India regulates the supply of money in the economy through SLR and CRR. It increases and decreases the ratios accordingly to maintain proper cash flow in the market.

Sandeep Garg class 12 Macroeconomics Solutions chapter 6 provides a detailed chart differentiating between CRR and SLR.

Margin

The amount which is required to buy investment can be termed as ‘Margin’ in economics. It is the ratio between profit and revenue. A detailed explanation of Margin along with its formula is given in class 12 Macroeconomics Banking Commercial Banks and the Central Bank chapter.

Central Bank or RBI

The central bank in India is known as the Reserve Bank of India (RBI). RBI is the apex authority in Indian banking structure, which holds the sole right to make monetary decisions on behalf of the citizens. It was established on 1st April 1935 and was nationalised in the year 1949.

NABARD

NABARD is the acronym for National Bank for Agriculture and Rural Development. It was set up on 12th July 1982 and is headquartered in Mumbai. NABARD has been entitled with the responsibility of developing small industries, rural projects, cottage industries, and so on. In India, NABARD is the apex development bank.

Bank of Issue

Bank of issue is that authority in a country which is authorised to issue or print currency notes. In India, RBI holds the control of issuing banknotes. In class 12 Sandeep Garg solutions Banking Commercial Banks and The Central Bank chapter, there is a detailed answer on bank of issue.

How to Prepare Chapter 6 for Economics Exams?

The correct method to study Chapter 6 from Sandeep Garg Macroeconomics solutions is:

Step 1: Go through the corresponding chapter from your textbook.

Step 2: Mark your queries and refer to the class 12 Sandeep Garg solutions Banking Commercial Banks and the Central Bank chapter.

Step 3: Read the answers to clarify your doubts.

Step 4: Try writing the answers in your notebook by yourself after going through the solutions.

With the board exams nearing, you could also follow these steps while revising your lessons.

Banking Commercial Banks and the Central Bank class 12 Macroeconomics Sandeep Garg is a vital chapter for your board exams. Make sure to revise it thoroughly before appearing for your board exams.

Now students can get a deep understanding of the Macroeconomics Chapter 6 via Sandeep Garg Macroeconomics Class 12 Solutions Class 12 Macroeconomics Sandeep Garg Solutions Chapter 6 - Banking - Commercial Banks and The Central Bank from Vedantu by downloading the content and preparing for their exams and completing the homework.

Advantages of learning Through Sandeep Garg Macroeconomics Class 12 Solutions:

There are a number of advantages when learning through Sandeep Garg Macroeconomics Class 12 Solutions such as:

Understanding of the matter in the topics
Helps in preparing their own notes
Gives the last-minute revision for students who are preparing for the exam.

FAQs on Sandeep Garg Macroeconomics Class 12 Solutions Chapter 6

1. How Many Question-Answers are Given in Chapter 6 of Sandeep Garg Solutions?

There are six questions in the Banking chapter of Sandeep Garg class 12 macroeconomics solutions. These provide a detailed insight of the banking system of India, describing the central and commercial banks of the country.

2. How is CRR Different from SLR?

CRR stands for Cash Reserve Ratio, while SLR stands for Statutory Liquidity Ratio. CRR implies the proportion of bank deposits which has to be made in the form of cash. On the other hand, SLR is the proportion of bank deposit required to be maintained in the form of liquid assets (like gold, treasury bills, government bonds, etc.) Both SLR and CRR are to be maintained with the Reserve Bank of India.

3. What is the Meaning of Bank of Issue?

Bank of issue is the apex body in a country which enjoy the authority to create currency notes. RBI is the bank of issue in India. RBI is also the apex authority in Indian banking structure, holding the sole right to make monetary decisions on behalf of the country.

4. How can I learn to write answers in Macroeconomics for Class 12?

In order to attempt the answers in macroeconomics for the Class 12 exam, you need to know some tips that will help you with the smooth flow of the exam. Economics is one of the subjects that you can finish off within the given time and still have time left to go through the needed changes. Here are some tips on how to give precise answers:

Make sure you do not write lengthy answers instead make sure the answers are to-the-point and precise.
Adding the answers in a sequential manner will allow the teachers to go through the answers much easier and provide you with better marks.
If there is a definition asked then all you need to write is the definition and the download if any. You need not specify any other extra information that is not asked for
Make sure you highlight the final answer and use a pencil for any additional changes so that it does not look haphazard.
Check the number of marks provided for each question and answer accordingly for example if it is a question worth 1 mark write only a single line about the answer however if there is a question worth 4 marks you can elaborate on the question asked.

5. How are commercial banks different from reserve banks?

There are quite a few differences when it comes to commercial banks and reserve banks. The difference between the two can be provided as follows:

1. Ownership:

The commercial banks are either owned by government sectors or by private sector parties while the Reserve banks are owned by the Government of India only.

2. Motive:

The commercial banks aim at earning profit via interests being applied whereas reserve banks aim to prevent the government from taking control over the money and to extend banking facilities all over the country.

3. Lending facilities:

The commercial banks have lending facilities and other related offers to the general public whereas the reserve banks do not lend money to the public instead it lends money only to other banks.

6. What are the types of banks and what are their functions?

There are a number of bank types in India and the different types are:

Central bank
Cooperative banks
Commercial banks
Regional Rural Banks
Local Area Banks
Specialized banks
Small Finance Banks
Payments Banks
Reserve Banks.

The function of all these types of banks will mainly include the following:

acceptance of deposits from the public
provide demand withdrawal facility
lending facility
transfer of funds
issue of drafts
provide customers with locker facilities
dealing with foreign exchange.

Knowing the different banks and their functions is not only helpful in answering the Macroeconomics Class 12 Chapter 6 - Banking - Commercial Banks and The Central Bank question but also helps in other competitive exams as well. You can find good quality and well-researched content on banking on the website of Vedantu and its mobile application.

7. How does the Sandeep Garg Macroeconomics Class 12 for Chapter 6 - Banking - Commercial Banks and the Central Bank help students to understand the banks and their usages in daily life?

The Sandeep Garg Macroeconomics Class 12 Solutions for Chapter 6 - Banking - Commercial Banks and The Central Bank provides a comprehensive guide on the types of banks, their roles and the importance of these institutions. Such learning can also be applied to daily life where understanding of banks and their roles become a necessity. Apart from being useful in daily life, students also tend to understand these concepts and score well in the board exam or any other exams alike.

8. Is it possible to learn through Sandeep Garg Macroeconomics Class 12 Solutions for Chapter 6 - Banking - Commercial Banks and The Central Bank for board exams?

12th board exams might sound a bit scary for a lot of students but it is actually quite easy to tackle if you have a good understanding of the concepts and have practiced enough for the exam. Learning through the Sandeep Garg Macroeconomics Class 12 Solutions for Chapter 6 - Banking - Commercial Banks and The Central Bank available on the website of Vedantu gives students an ability to understand; the main motive of the chapter in short words while also helping them write the answers in their own words.