DELHI PUBLIC SCHOOL GOMTI NAGAR, LUCKNOW

WORKSHEET
CLASS: XII
SUBJECT- ECONOMICS
CHAPTER-5 – MONEY

Q.1. __________is the system followed by RBI to issue currency in India.

Q.2. __________ measure of money supply is considered as the monetary base.

Q.3. Arrange the evolution of money into correct order:

a) Plastic money b) Commodity money c) Metallic money d) Paper money

Q.4. What is High Powered money?

Q.5. Assertion: (A) The currency notes do not carry as much value in it as
denominated, still has general acceptance.
Reason: (R) Currency notes are backed by a legal promise from the Central
Bank and the Central government of the country.
a) Both (A) and ( R) are true and(R ) is the correct explanation of (A)
b) Both (A) and ( R) are true and(R ) is not the correct explanation of (A)
c) (A) is true , (R) is false
d) (A) is true , (R) is false

Q.6. State the meaning of the term money. (1)

Q.7. What is a legal tender? (1)

Q.8.What is fiat money? (1)

Long Answer Type Questions :

Q.1. Anthony and Ajay were having a conversation on the topic of ‘money supply’.
Anthony was of the view that since money supply consists of supply, it is a flow
concept, whereas Ajay was of the opinion that it is a stock concept. In your view,
which of the two is correct and why? (3)

Q.2. Define the term money supply. Explain its components. (6)

Q.3. What is Barter System of exchange? Explain the limitations of Barter System of
Exchange. (6)

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