Commerce · Class 12 Commerce

Ch 2Banking and Insurance — Class 12 Commerce, concept-first.

Every economy needs an institution that can safely hold the money people are not spending right now and channel it to people who need to borrow. That institution is the bank.

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Types of Banks and the Banking System

A banking system is never made up of just one kind of bank; it is a hierarchy of different institutions, each serving a distinct purpose.

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Chapter contents

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Meaning of a Bank and the Banking System

Every economy needs an institution that can safely hold the money people are not spending right now and channel it to people who need to borrow. That institution is the bank.

Types of Banks

Not every bank does the same job. Modern economies operate several distinct kinds of banks, each designed for a particular purpose, and a Telangana Intermediate commerce banking and insurance student…

Primary Functions of Commercial Banks

A commercial bank's functions are traditionally divided into primary functions — the core activities without which it would not be a bank at all — and secondary functions, which are additional service…

Secondary Functions of Commercial Banks

Beyond accepting deposits and lending, a commercial bank performs a wide range of secondary functions that make it a one-stop financial service provider for its customers.

Credit Creation by Commercial Banks

One of the most distinctive things a commercial bank does is create credit far beyond the actual cash it holds.

E-Banking and Modern Banking Services

Banking today is delivered as much through a screen as across a counter. Electronic banking (e-banking) refers to the delivery of banking services and the conduct of banking transactions through elect…

Reserve Bank of India — Role and Functions

Standing above every commercial, cooperative and regional rural bank in India is the Reserve Bank of India (RBI), the country's central bank.

Meaning and Nature of Insurance

Every economic activity, including the banking activity discussed so far in this chapter, is exposed to risk — a fire may destroy a warehouse, a ship carrying cargo may be lost at sea, a person may fa…

Principles of Insurance

For an insurance contract to work fairly and to remain financially sound for the insurer, it must satisfy certain well-established principles.

Types of Insurance

Insurance is broadly divided into two major categories: life insurance and general insurance, and general insurance is further divided into several specific branches depending on the nature of the ris…

Importance of Insurance

Insurance matters far beyond the individual policyholder who eventually makes a claim. To the individual, insurance provides genuine peace of mind and financial security — a family is protected agains…

Exercises

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Sample & Board Papers

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

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