Money and Banking Class 12 Economics PYQ

Class 12 Economics Money and Banking PYQ, free to download as a 127-page PDF. The chapter carries about 6 of the 80 marks in the board paper, and the set holds 161 solved questions from the 2005 to 2026 papers on the functions of money, barter, money supply and its components, credit creation by commercial banks, the money multiplier and reserve ratio, the functions of the central bank, and the credit control instruments (repo, reverse repo, bank rate, CRR, SLR, open market operations and margin requirements), and takes roughly 10 hours to work through, so do the 55 one-mark questions and the 19 three-mark questions on the first day, the 68 four-mark questions on the second, and the 19 six-mark questions on the third before moving on to Determination of Income and Employment.

Money and Banking Weightage in the Class 12 Board Paper

As per Economics Money and Banking weightage from past years, students can expect about 6 marks out of the 80-mark board paper from this unit. The figure comes from the unit-wise marks table for the 2026-27 CBSE curriculum on the Physics Wallah marking-scheme page and is unofficial, so check the curriculum on cbseacademic.nic.in for the official unit marks.

The 161 questions in this set fall in four mark bands. The 68 four-mark questions are the largest group, followed by 55 one-mark questions, then 19 each of three and six marks. 46 of the one-mark questions are MCQs, so 115 questions in all need a written answer.

Money and Banking Questions by Topic

The central bank is the most repeated theme. 32 questions are on its functions: banker to the government, the bankers' bank and supervisor, the bank of currency issue, and lender of last resort. 34 more are on credit control instruments. Repo and reverse repo appear in 9 questions, bank rate in 8, open market operations in 5, the cash reserve ratio in 4, the statutory liquidity ratio in 3, and margin requirements in 1.

36 questions are on credit creation, the reserve ratio or the multiplier, and 26 mention commercial banks. 30 are on money supply, including M1 and its components, and 23 are on the functions of money, with 3 of them linked to the problems of barter.

8 questions ask for a calculation, for example total deposits from primary deposits and a reserve ratio, or the money multiplier from a legal reserve ratio of 20%. Another 8 ask for a numerical illustration of credit creation. 10 questions ask you to justify or agree with a statement, 10 are built on a news report, passage or case, and 2 are assertion-reason items. The topic counts come from keyword matches, so a question on two topics is counted under both.

Money and Banking Video Lesson

Source: Magnet Brains on YouTube

How to Approach the Money and Banking Set

At one minute per one-mark question and five minutes per written answer, the 55 one-mark questions and 106 longer answers come to about 10 hours, so split it over three days. Day one: the 55 one-mark questions and the 19 three-mark questions. Day two: the 68 four-mark questions, which include the news-report and case questions. Day three: the 19 six-mark questions, then a second pass over any credit creation numericals you got wrong.

For a credit creation numerical, write the formula first: money multiplier is 1 divided by the reserve ratio, and total deposits are primary deposits times the multiplier. For the central bank and instrument questions, a one-line effect on money supply and a one-line reason is what the marks reward, for example that a rise in bank rate makes borrowing dearer and reduces credit.

Common Mistakes in Money and Banking Questions

• Treating deposits as an asset of a bank. They are a liability, and loans are the asset.
• Taking the money multiplier as the reserve ratio itself instead of its inverse.
• Counting the primary deposit twice when finding the credit created.
• Mixing up repo and reverse repo. Repo is what banks pay to borrow from the RBI, reverse repo is what the RBI pays to take their funds.
• Saying a higher CRR increases money supply.
• Listing the functions of the central bank without explaining even one.
• Answering a justify or agree question with a bare yes or no.

Using the Answer Key and Solutions

The PDF is 127 pages and free to download. Each section is sorted newest year first, the Answer Key lists every MCQ at a glance, and each question links to its worked solution and back. Attempt a section first, check the key, then read the solution and note the common mistake given with it. The solutions are written by Collegedunia's Economics experts and are not official CBSE marking schemes.

Class 12 Economics PYQs by Chapter