AHSEC Class 12 Finance Solved Question Paper 2016 PDF - [H.S 2nd Year Finance Solved Paper]

Are you a student preparing for the AHSEC Class 12 Finance exam? Searching for the AHSEC Class 12 Finance Solved Question Paper 2016? Look no further! In this page, we will provide you with a comprehensive overview of the AHSEC H.S 2nd Year Finance Solved Question Paper 2016. The Assam Higher Secondary Education Council (AHSEC) conducted this examination, making this solved question paper an invaluable resource for your exam preparation.

AHSEC Class 12 Finance Solved Question Paper 2016 PDF - [H.S 2nd Year Finance Solved Paper]

Overview: AHSEC Class 12 Finance Solved Question Paper 2016

- Board: Assam Higher Secondary Education Council (AHSEC)

- Class: 12th

- Year: 2016

- Exam Mode: Offline

- Subject: Business Studies

- Solution: AHSEC Class 12 Finance Studies Solved Question Paper 2016

Category: AHSEC Solved Question Papers

AHSEC HS 2nd Year Finance Solved Question Paper 2016

Full Marks: 100
Time: 3 hours
The figures in the margin indicate full marks for the questions.

1. Answer as directed:          1x10=10

a) Which is the first Development Bank established in India?


b) What is primary market?

Ans: Ans: Primary market which is also called new issue market represents a market where new securities i.e. shares and bonds that have never been previously issued are offered. It is a market of fresh capital. The main function of this market is to facilitate the transfer of funds from willing investors to the entrepreneurs.               

c) In which year fourteen Indian commercial banks were nationalized?

Ans: 1969

d) What do you mean by scheduled bank?

Ans: A scheduled bank is a financial institution that is listed in the Second Schedule of the Reserve Bank of India Act, 1934. To be considered a scheduled bank, a bank must fulfill certain criteria and be eligible for various privileges and facilities provided by the Reserve Bank of India (RBI). Scheduled banks are authorized to operate and conduct banking activities across the country, and they play a crucial role in the Indian banking system.

e) Capital market is the market for long-term fund. (State whether True or False)            TRUE

f) Write the full form of MMMF.

Ans: Money Market Mutual Fund

g) A collecting banker can claim statutory protection only in the case of Crossed cheque. (Fill up the blank)

h) What is statutory liquidity ratio?

Ans: Statutory Liquidity Ratio (SLR):

The Statutory Liquidity Ratio (SLR) is a mandatory reserve requirement that commercial banks in India are required to maintain in the form of liquid assets, such as cash, gold, or approved securities, as a percentage of their net demand and time liabilities (NDTL). The primary purpose of SLR is to ensure the stability and liquidity of the banking system and to enable banks to meet their depositors' demands in times of financial stress.

2. Name two departments of the Reserve Bank of India.                              2

Ans:Two Departments of the Reserve Bank of India:

The Reserve Bank of India (RBI) has several departments and functions to oversee various aspects of the Indian financial system. Two notable departments of the RBI are:

a. Department of Currency Management: This department is responsible for the issuance and circulation of currency notes and coins in India. It ensures that an adequate supply of currency is available to meet the demands of the economy while also maintaining the integrity and security of the currency.

b. Department of Banking Regulation: This department is responsible for regulating and supervising banks and financial institutions in India. It ensures that banks operate in compliance with RBI's guidelines and prudential norms to maintain the stability and soundness of the banking sector.

3. What is the meaning of cash credit?                  2

Ans: Cash Credit is a type of short-term loan facility offered by banks to businesses and individuals. Under a cash credit arrangement, the borrower is allowed to withdraw funds up to a specified credit limit as needed, and interest is charged only on the amount withdrawn and for the duration of the withdrawal. It is a flexible form of credit often used for working capital needs, where borrowers can access funds as and when required within the approved limit. Cash credit facilities are commonly used by businesses to manage their day-to-day operational expenses and fluctuations in cash flow.

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