Class 12 Finance Important Questions 2025 for AHSEC Exam [Finance Question Banks]

Preparing for the AHSEC Class 12 Finance exam in 2025 can be much easier with the right tools. The AHSEC Class 12 Finance Important Questions 2025 is a question bank designed to help you focus on the most important topics. It includes questions from previous exams and other commonly asked ones, helping you prepare effectively.

AHSEC Class 12 Finance Important Questions 2025:

Unit 1: Financial Institutions

Section A: Objective Type (1 Mark)

1. The Reserve Bank of India was established in the year ____. (Fill in the blank) (AHSEC 2012, 2024)

2. NABARD was established in the year 1982/1985/1987. (Choose the correct year) (AHSEC 2012)

3. Write the full form of IFCI. (AHSEC 2012, 2020)

4. In which year was Regional Rural Bank established? (Fill in the blank) (AHSEC 2023)

5. In which year fourteen Indian commercial banks were nationalized? (Fill in the blank) (AHSEC 2012, 2016)

6. Money market is the market for short-term funds. (State whether True or False) (AHSEC 2012)

Section B: Short Answer (2 Marks)

1. Name any two departments of the Reserve Bank of India. (AHSEC 2012, 2016)

2. What is the minimum reserve system of note issue? (AHSEC 2014, 2022)

3. What is meant by the Cash Reserve Ratio? (AHSEC 2013)

4. Write two features of NABARD. (AHSEC 2020, 2024)

Section C: Short Notes (3 Marks)

1. State three functions of NABARD. (AHSEC 2022, 2024)

2. Write a note on the Presidency Bank. (AHSEC 2012, 2022)

3. Explain briefly the objectives and functions of IFCI. (AHSEC 2024)

Section D: Long Answer (5 Marks)

1. Discuss the organizational setup of the RBI. (AHSEC 2022)

2. Explain the different credit control techniques of the RBI. (AHSEC 2012)

3. Write about the promotional functions of the RBI. (AHSEC 2024)

Section E: Detailed Answer (8 Marks)

1. Discuss the functions of NABARD in the agricultural development of India. (AHSEC 2023, 2024)

2. Explain the role of the RBI in the economic development of India. (AHSEC Multiple Years)

3. Write a note on the State Bank of India. (AHSEC 2013, 2014, 2020)

Unit 2: Money Market and Foreign Exchange Market

Section A: Objective Type (1 Mark)

1. Money market is the market for short-term funds. (State whether True or False) (AHSEC 2012, 2024)

2. Capital Market is the market for long-term funds. (State whether True or False) (AHSEC 2013, 2016)

3. What is foreign exchange market? (AHSEC 2012)

4. Since which year the RBI has been issuing notes based on the Minimum Reserve System? (AHSEC 2019)

5. NSE was set up in the year 1992/1993/1994/1995. (Choose the correct year) (AHSEC 2019)

6. The rate of exchange in the foreign exchange market refers to ____. (Fill in the blank) (AHSEC 2024)

Section B: Short Answer (2 Marks)

1. What is the meaning of Cash Reserve Ratio? (AHSEC 2013)

2. Name two sub-markets of the Indian money market. (AHSEC 2015)

3. What is the minimum reserve system of note issue? (AHSEC 2014)

4. What is the proportional reserve system method of issuing notes? (AHSEC 2024)

5. What is meant by SENSEX? How many stocks are included in SENSEX? (AHSEC 2020)

6. Write two features of the foreign exchange market. (AHSEC 2024)

Section C: Short Notes (3 Marks)

1. What are the various sub-markets of the money market? (AHSEC 2019)

2. Write a brief note on the Indian Money Market. (AHSEC 2015)

3. Explain the system of issuing currency notes by the RBI. (AHSEC 2014)

4. Discuss briefly the structure of the Indian money market. (AHSEC 2024)

5. State three objectives of the money market. (AHSEC 2022)

6. Write three differences between the money market and the capital market. (AHSEC 2014, 2016)

Section D: Long Answer (5 Marks)

1. Discuss the functions of the foreign exchange market. (AHSEC 2020)

2. Discuss about the institutions participating in the Indian Money Market. (AHSEC 2012, 2015)

3. What are the features of the Indian money market? (AHSEC 2016, 2023)

4. Explain the defects of the Indian money market. (AHSEC 2024)

5. Write a note on the instruments of the money market. (AHSEC 2024)

Section E: Detailed Answer (8 Marks)

1. Discuss the functions of the money market and its importance. (AHSEC Multiple Years)

2. Explain any two credit control techniques adopted by the RBI. (AHSEC 2018)

3. What are the differences between the money market and the capital market? (AHSEC 2012, 2016)

UNIT 3: CAPITAL MARKET

Section A: Objective Type (1 Mark)

1. Capital Market is the market for long-term funds. (State whether True or False) (AHSEC 2013, 2016)

2. What is primary market? (AHSEC 2014, 2016)

3. NSE was set up in the year 1992/1993/1994/1995. (Choose the correct year) (AHSEC 2019)

4. SENSEX consists of how many stocks? (Fill in the blank) (AHSEC 2020)

5. Stock Exchange is an example of ____. (Fill in the blank) (AHSEC Multiple Years)

Section B: Short Answer (2 Marks)

1. What is meant by the term ‘stock exchange’? (AHSEC 2013, 2015)

2. What are the main features of the capital market? (AHSEC Multiple Years)

3. Write two features of the new issue market. (AHSEC Multiple Years)

4. What is meant by the Cash Reserve Ratio? (AHSEC 2013)

Section C: Short Notes (3 Marks)

1. Write a brief note on the Indian capital market. (AHSEC 2014, 2016)

2. What are the sub-markets of the capital market? (AHSEC Multiple Years)

3. Discuss three differences between the primary market and secondary market. (AHSEC Multiple Years)

4. Explain the role of the stock exchange in the economy. (AHSEC Multiple Years)

Section D: Long Answer (5 Marks)

1. Discuss the functions of a stock exchange. (AHSEC 2014, 2020)

2. Explain the differences between the capital market and the money market. (AHSEC 2013, 2016)

3. Write a note on the listing of securities and its importance. (AHSEC Multiple Years)

Section E: Detailed Answer (8 Marks)

1. Discuss the methods of trading in a stock exchange and its benefits. (AHSEC Multiple Years)

2. Explain the features and functions of the capital market. (AHSEC Multiple Years)

3. What are the advantages of the new issue market for companies and investors? (AHSEC Multiple Years)

UNIT 4: FINANCIAL SERVICES

Section A: Objective Type (1 Mark)

1. What is meant by E-banking? (AHSEC 2015, 2018, 2020)

2. ATM stands for ____. (AHSEC 2016, 2019, 2023)

3. Write the full form of SIDC. (AHSEC 2015)

4. Credit card is an example of ____. (AHSEC 2017, 2022)

5. Mobile banking is also referred to as ____. (AHSEC 2016)

6. Mutual Funds are regulated by ____. (AHSEC 2014)

Section B: Short Answer (2 Marks)

1. What is meant by hire-purchase? (AHSEC 2012, 2017)

2. Write two features of mutual funds. (AHSEC 2023)

3. What is meant by merchant banking? (AHSEC 2014, 2020)

4. What is the difference between finance lease and operating lease? (AHSEC 2016, 2022)

Section C: Short Notes (3 Marks)

1. Write a note on credit cards and their utilities. (AHSEC 2015, 2021)

2. What are the advantages of e-banking? (AHSEC 2013, 2020)

3. Explain the classification of mutual funds. (AHSEC 2018, 2023)

4. Write three differences between open-ended and close-ended mutual funds. (AHSEC 2016, 2022)

5. Explain the meaning and features of venture capital. (AHSEC 2014, 2020)

Section D: Long Answer (5 Marks)

1. Discuss the advantages and disadvantages of lease finance to lessors and lessees. (AHSEC 2012, 2019)

2. Explain the functions and importance of factoring services. (AHSEC 2014, 2018)

3. Write a note on the benefits of investing in mutual funds. (AHSEC 2015, 2023)

4. Explain the role and functions of merchant banking. (AHSEC 2013, 2020)

Section E: Detailed Answer (8 Marks)

1. Explain the differences between hire-purchase and lease finance. (AHSEC 2016, 2022)

2. Discuss the various types of mutual funds and their advantages for investors. (AHSEC 2014, 2019)

3. What are the fee-based financial services, and why are they important for the economy? (AHSEC 2015, 2020)

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Note: The questions above are taken from AHSEC Class 12 Finance (Banking) previous year question papers (2012–2024). They are very useful for exam preparation. However, there may be small mistakes in the years mentioned. Please check with the original papers for confirmation. All the questions are important for practice.

Chapter No.	Chapter Name
Chapter 1	Organization and Management of the RBI
Chapter 2	Functions of the Reserve Bank of India
Chapter 3	Credit Control Techniques of the RBI
Chapter 4	Role of the RBI in the Economic Development of India
Chapter 5	Development Financial Institutions
Chapter 6	Money Market
Chapter 7	Indian Money Market
Chapter 8	Foreign Exchange Market
Chapter 9	Capital Market
Chapter 10	New Issue Market (NIM) or Primary Market
Chapter 11	Stock Exchange or Secondary Market
Chapter 12	Methods of Trading in a Stock Exchange
Chapter 13	Modern Banking Services
Chapter 14	Lease
Chapter 15	Hire-Purchase
Chapter 16	Mutual Fund
Chapter 17	Venture Capital and Factoring
Chapter 18	Fee-based Financial Services

QUESTION PAPER	SOLVED PAPER
2012	2012
2013	2013
2014	2014
2015	2015
2016	2016
2017	2017
2018	2018
2019	2019
2020	2020
N.A	N.A
2022	2022
2023	2023
2024	2024
2025	2025

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Benefits of Using This Question Bank:

1. Includes previous years’ questions along with extra important ones.
2. Focuses on the most common questions to help save time.
3. Helps you understand how the exam is structured.
4. Improves your score with better preparation.
5. Saves study time and is easy to use.

Study Tips for Students:

1. Start by studying the common questions.
2. Practice writing your answers to get faster.
3. Regularly revise your work to remember key points.
4. Focus on the topics you find more challenging.
5. Stay consistent and manage your time well.

Class 12 Other Subjects Important Questions

• English 
• Alternative English
• Accountancy
• Business Studies 
• Education
• Economics
• Political Science
• Sociology

FAQ (Frequently Asked Questions):

1. Can these questions guarantee full marks in exams? These questions cover important topics and common patterns. However, success depends on your hard work and overall preparation.

2. Are these questions useful for all AHSEC students? Yes, these questions are made according to the AHSEC Class 12 syllabus and will help all students.

3. How often should I practice these questions? Practice regularly, revise every week, and write your answers to improve your performance.

Final Thoughts:

The AHSEC Class 12 Finance Important Questions 2025 is here to help you prepare with confidence and score well in your exam. Stay focused, use this guide, and give your best effort. Good luck!