1. What is Money?
Money is anything that is widely accepted as a medium of exchange,
a measure of value, a store of value and a standard for deferred payments.
हिंदी: Money = वह वस्तु जिसे लोग आम तौर पर लेन-देन के लिए स्वीकार कर लेते हैं –
जैसे नोट, सिक्के, बैंक deposits (cheque आदि)।
2. Functions of Money (Simple)
- Medium of exchange – used to buy and sell goods.
- Measure of value – value of goods expressed in money terms.
- Store of value – wealth can be stored as money.
- Standard of deferred payments – future payments are made in money.
3. Banking – Commercial Banks
Commercial Banks are institutions that:
- Accept deposits from the public.
- Give loans and advances.
- Provide services like cheque, draft, ATM, online banking etc.
हिंदी: Bank = जहाँ लोग पैसे जमा करते हैं, और जहाँ से लोग loan लेते हैं –
साथ ही bank कई services देता है (cheque, ATM, online payment आदि)।
4. Reserve Bank of India (RBI)
- Central Bank of India.
- Established in 1935.
- Issues currency notes (except one rupee notes & coins – issued by Government).
- Banker to the Government and to commercial banks.
- Controls credit and money supply in the economy.
4.1 Functions of RBI (NDA Level)
- Currency authority – prints and manages currency notes.
- Banker to the Government – handles government accounts, loans.
- Bankers’ bank – keeps cash reserves of banks, lends to banks.
- Controller of credit – uses instruments like:
- Bank Rate
- Repo Rate
- CRR (Cash Reserve Ratio)
- SLR (Statutory Liquidity Ratio)
हिंदी Summary:
RBI = “Bank of Banks” + “Note छापने वाला bank” + “सरकार का bank” + “credit control करने वाला bank”।
5. Monetary Policy (Very Short)
Monetary Policy = Policy of the Central Bank (RBI) to control:
- Money supply
- Interest rates
- Credit availability
📘 Practice Questions (NDA Style)
1. Which of the following is NOT a function of money?
a) Medium of exchange
b) Store of value
c) Measure of value
d) Production of goods
2. Commercial banks mainly:
a) Print currency notes
b) Accept deposits and give loans
c) Make laws
d) Control defence forces
3. The central bank of India is:
a) SBI
b) RBI
c) NABARD
d) SIDBI
4. RBI was established in:
a) 1947 b) 1950 c) 1935 d) 1969
5. CRR stands for:
a) Cash Reserve Ratio
b) Credit Rate Ratio
c) Cash Return Rate
d) Capital Reserve Rate
a) Medium of exchange
b) Store of value
c) Measure of value
d) Production of goods
2. Commercial banks mainly:
a) Print currency notes
b) Accept deposits and give loans
c) Make laws
d) Control defence forces
3. The central bank of India is:
a) SBI
b) RBI
c) NABARD
d) SIDBI
4. RBI was established in:
a) 1947 b) 1950 c) 1935 d) 1969
5. CRR stands for:
a) Cash Reserve Ratio
b) Credit Rate Ratio
c) Cash Return Rate
d) Capital Reserve Rate
Answers:
1 – d) Production of goods
2 – b) Accept deposits and give loans
3 – b) RBI
4 – c) 1935
5 – a) Cash Reserve Ratio
1 – d) Production of goods
2 – b) Accept deposits and give loans
3 – b) RBI
4 – c) 1935
5 – a) Cash Reserve Ratio
Quick Recap | सार
Now you should be able to:
- Recall the most important ideas of this topic.
- Solve typical NDA-style questions from this chapter.
- Spot and avoid common traps used in competitive exams.
Self-check: 3–4 random questions उठा कर देखिए – अगर आसानी से हो रहे हैं, तो chapter strong है।
Common Exam Mistakes | आम गलतियाँ
- Concept ठीक से clear न करना और सीधे रटने की कोशिश करना।
- Question पूरी तरह पढ़े बिना answer mark कर देना।
- Figures, dates, या formulas को last step में verify न करना।
NDA में smart strategy यह है कि आसान वाले सवाल पहले, doubtful बाद में – और silly mistakes से बचना सबसे ज़रूरी है।