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SAI International School
Session- 2025-2026

Home Assignment -2
Subject- Economics Ch- 3- MONEY AND CREDIT

Q Question Marks
no

1 In India who issue currency notes on behalf of government of India? 1

a) State Bank of India
b) Central Bank of India
c) Reserve Bank of India
d) United Bank of India
2 What is the Reserve Bank of India? 1
a) The central bank of India
b) The largest commercial bank in India
c) A government agency that regulates the stock market
d) An international organisation that promotes economic development

3 The law legalises the use of ___________________as a medium of payment that cannot be 1
refused in settling transactions in India.
4 A _________________is a paper instructing the bank to pay a specific amount from the person’s 1
account to the person in whose name that has been issued.
5 People also have the provision to withdraw the money as and when they require. Since the 1
deposits in the bank accounts can be withdrawn on demand; these deposits are called______
________________________.
6 In the question given below, there are two statements marked as Assertion (A) and 1
Reason (R).
Read the statements and chose the correct option:
Assertion (A): Demand deposits are accepted widely as a means of payment, along with currency,
they constitute money in the modern economy.
Reason (R): Demand deposits share the essential features of money. The facility of cheques against
demand deposits make it possible to directly settle payments without the use of cash.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is correct but R is wrong.
d) A is wrong but R is correct.

7 In the question given below, there are two statements marked as Assertion (A) and 1
Reason (R).
Read the statements and chose the correct option:
Assertion (A): What a person desires to sell is exactly what the other wishes to buy.
Reason (R): In a barter system where goods are directly exchanged without the use of money,
double coincidence of wants is an essential feature.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is the correct explanation of A.