Ch 6Banking — Class 12 Economics, concept-first.

A bank is a financial institution that accepts deposits from the public, repayable on demand or otherwise, and uses these deposits to lend and invest, with the object of earning profit.

The functions of a commercial bank fall into three groups.

Commercial banks do more than store money — collectively, they create credit, expanding the total volume of deposits (and hence money) to a multiple of the initial cash they receive.

The Reserve Bank of India (RBI), established in 1935, is India's central bank and the apex institution of the country's monetary and banking system. Its main functions are:

Monetary policy is the policy of the central bank to regulate the supply and cost of money and credit in the economy in order to achieve broad objectives — price stability, economic growth, full emplo…

Sample papers and previous-year board questions for this subject.