![AHSEC HS 1st Year Finance Solved Question Paper 2024 [Assam Board Class 11 Finance Solved Question Papers]](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgLLktAlFC2SOdoPhGxvacii1kxZc0JIGF6AbcY1uGfap1BXOE0UeII3QfqbxSxLWYvOAcbtwgmoSSCuC-grwF4aZNB32d5tzfNJOjnhO1ysZceYG0moVJlURnOKEneJIhPD0QDT5HdL_e2HFwZ5mEAifM7bWaNrVFnBCT-Btggsgi6FIIIRx_RBOg8EKdf/s1120/AHSEC%20Erstwhile%20ASSEB%20Class%2011%20Finance%20Solved%20Question%20Paper%202024%C2%A0PDF%20HS%20First%20Year%20Finance%20paper%20solution%202024%20in%20PDF%20AHSEC%20Class%2011%20Finance%20Solved%20Question%20Paper%202024.webp "AHSEC HS 1st Year Finance Solved Question Paper 2024 [Assam Board Class 11 Finance Solved Question Papers]")
2024
FINANCE
Full Marks: 80
Pass Marks: 24, Time: 3 hours
The figures in the margin indicate full marks for the questions
1. Answer the following as directed : 1×6=6
(a) The Banking Regulation Act was passed in the year_______ (Fill in the blank)
Answer: 1949
(b) RRBs were started in the year 1967/1975/1976. (Choose the correct answer)
Answer: 1975
(c) Who is authorized to issue paper currency in India?
Answer: The Reserve Bank of India (RBI)
(d) Write the name of the Central Bank of our country.
Answer: The Reserve Bank of India (RBI)
(e) Write the full form of NABARD.
Answer: National Bank for Agriculture and Rural Development
(f) EXIM bank was established in the year_____.(Fill in the blank)
Answer: 1981
2). What is a savings bank? (2 Marks)
Answer: A savings bank is a financial institution that accepts deposits from individuals and provides interest on savings. It encourages people to save money and helps in secure financial management.
3). Name any two public sector banks in India. (2 Marks)
Answer:
(i) State Bank of India (SBI)
(ii) Punjab National Bank (PNB)
4). Write two functions of Regional Rural Banks. (2 Marks)
Answer:
(i) Providing loans to small farmers, artisans, and rural entrepreneurs.
(ii) Accepting deposits from rural customers and promoting financial inclusion.
5). What is a bank passbook? (2 Marks)
Answer: A bank passbook is a small booklet issued by a bank to its customers, which records their transactions, including deposits, withdrawals, and account balance.
6). State any two differences between Commercial Bank and Reserve Bank. (2 Marks)
Answer:
7). State briefly the difficulties of the barter system. (3 Marks)
Answer:
(i) Lack of double coincidence of wants – Both parties must have what the other needs.
(ii) Difficulty in storing wealth – Goods like food cannot be stored for long.
(iii) Lack of a common measure of value – There is no standard way to measure different goods' values.
8). Explain about retail banking. (3 Marks)
Answer: Retail banking refers to banking services provided to individual customers rather than businesses. It includes savings accounts, fixed deposits, home loans, personal loans, credit cards, and online banking services.
9). Give the meaning of a credit card. (3 Marks)
Answer: A credit card is a payment card issued by banks that allows users to borrow money up to a set limit and repay it later with interest. It enables cashless transactions and offers benefits like rewards and EMI options.
10). Write a note on the trade cycle. (3 Marks)
Answer: A trade cycle refers to the fluctuations in economic activity over a period. It includes phases like boom (growth), recession (decline), depression (low economic activity), and recovery (revival). It impacts production, employment, and income levels.
11). What are the advantages of Internet banking? (3 Marks)
Answer:
(i) Convenience – Customers can access their accounts anytime, anywhere.
(ii) Fast Transactions – Online payments and fund transfers are quick.
(iii) Reduced Paperwork – Digital transactions reduce the need for physical documents.
12). Discuss the general utility functions of a bank. (5 Marks)
Answer: The general utility functions of a bank include:
(i) Safe Custody of Valuables – Banks provide locker facilities for storing important documents and valuables.
(ii) Issuance of Letters of Credit – Banks help in international trade by issuing letters of credit.
(iii) Transfer of Money – Banks offer services like NEFT, RTGS, and online transfers for secure money transactions.
(iv) Providing Foreign Exchange – Banks facilitate foreign currency exchange for international transactions.
(v) Underwriting Services – Banks guarantee payments for businesses in case of financial risks.
13). Explain the principles of note issue followed by the RBI. (5 Marks)
Answer: The Reserve Bank of India (RBI) follows these principles while issuing currency notes:
(i) Minimum Reserve System – RBI maintains a minimum reserve of ₹200 crores, including gold and foreign currency.
(ii) Monopoly of Note Issue – Only RBI has the authority to issue currency in India, except for ₹1 notes issued by the government.
(iii) Backing of Currency – The issued currency is backed by assets like gold, government securities, and foreign exchange reserves.
(iv) Limited Issue – RBI controls money supply based on economic needs to prevent inflation.
(v) Legal Tender – The issued notes are legally accepted for transactions across India.
14). What are the main causes of inflation? (5 Marks)
Answer: The main causes of inflation include:
(i) Demand-Pull Inflation – When demand for goods and services exceeds supply, prices rise.
(ii) Cost-Push Inflation – Increase in production costs (wages, raw materials) leads to higher prices.
(iii) Excess Money Supply – When too much money circulates in the economy, purchasing power increases, leading to price hikes.
(iv) Deficit Financing – When the government prints excess money to cover budget deficits, inflation occurs.
(v) Supply Chain Disruptions – Natural disasters, wars, or pandemics can disrupt supply, causing price rises.
15). Write notes on: (⅔ + ⅔ = 5 Marks)
(a) Development Bank:
Answer: Development banks provide long-term financial assistance for economic development projects. They support industries, infrastructure, and agriculture by offering loans and technical assistance. Examples include NABARD and SIDBI.
(b) Commercial Bank:
Answer: Commercial banks accept deposits and provide loans to individuals and businesses. They play a crucial role in economic growth by facilitating trade, investment, and credit creation. Examples include SBI, PNB, and Bank of Baroda.
16). Give the meaning and importance of a cheque book. (5 Marks)
Answer: Meaning: A cheque book is a booklet issued by banks containing pre-printed cheque leaves that customers can use to make payments from their bank accounts. It acts as an alternative to cash transactions.
Importance:
Convenience: Enables cashless payments.
Security: Reduces the risk of carrying large amounts of cash.
Legal Proof: Acts as a legal document in financial transactions.
Record Keeping: Helps maintain a record of payments and withdrawals.
Widely Accepted: Used for business transactions, salaries, and bill payments.
17). What are the different types of accounts? Explain any three of them. (8 Marks)
Answer: Banks offer various types of accounts based on customer needs. The main types of accounts are:
(i) Savings Account – A deposit account where individuals can save money and earn interest. It allows limited transactions and encourages savings habits.
(ii) Current Account – Mainly used by businesses and traders for frequent transactions. It does not provide interest but offers overdraft facilities.
(iii) Fixed Deposit Account – A type of account where a lump sum is deposited for a fixed period at a higher interest rate. Premature withdrawal may have a penalty.
(iv) Recurring Deposit Account – Customers deposit a fixed amount every month for a specific period, earning interest similar to a fixed deposit.
(v) Demat Account – Used for holding shares and securities in electronic form for stock market transactions.
(vi) NRI Account – Designed for Non-Resident Indians to deposit their earnings in India.
Explanation of any three types of accounts:
Savings Account: This account is for individuals who want to save money while earning interest. It allows limited withdrawals and is ideal for salaried people and students.
Current Account: This account is designed for businesses and organizations that require frequent banking transactions. It does not offer interest but provides overdraft facilities.
Fixed Deposit Account: Customers deposit a lump sum for a fixed duration and earn a higher interest rate than savings accounts. It helps in wealth accumulation.
Or
Discuss the procedure of opening a bank account in the name of a minor and a married woman. (8 Marks)
Answer: The procedure for opening a bank account varies for minors and married women due to different legal and financial considerations.
1. Opening a Bank Account for a Minor:
Eligibility: A minor (below 18 years) can open a bank account under the supervision of a guardian.
Documents Required:
(i) Birth certificate or school ID as age proof.
(ii) Guardian’s KYC documents (Aadhaar, PAN, address proof).
(iii) Minor’s Aadhaar card (if available).Procedure:
(i) Visit the bank with the required documents.
(ii) Fill out the account opening form with the guardian’s details.
(iii) Submit passport-size photographs of both the minor and guardian.
(iv) Deposit the minimum balance required as per the bank’s policy.
(v) The bank verifies the documents and issues a passbook and ATM card (if applicable).
2. Opening a Bank Account for a Married Woman:
Eligibility: Any married woman, whether working or homemaker, can open a bank account.
Documents Required:
(i) Identity proof (Aadhaar card, Voter ID, PAN card).
(ii) Address proof (electricity bill, rent agreement, or spouse’s address proof if living together).
(iii) Marriage certificate (if a name change is involved).Procedure:
(i) Visit the bank with the required documents.
(ii) Fill out the account opening form and choose the type of account.
(iii) Submit passport-size photographs.
(iv) Deposit the initial amount as per the bank’s requirement.
(v) Once verified, the bank provides a passbook, cheque book, and ATM card.
This procedure ensures a smooth account opening process for both minors and married women, providing them with financial independence and savings opportunities.
19). Write short notes on: (4+4=8 Marks)
(a) E-banking:
Answer: E-banking, also known as electronic banking or online banking, refers to banking services provided through electronic channels such as the internet, mobile apps, and ATMs. It allows customers to perform financial transactions without visiting a bank branch.
Features of E-banking:
(i) Internet Banking: Customers can check balances, transfer funds, and pay bills online.
(ii) Mobile Banking: Banking services are accessible through smartphone apps.
(iii) ATM Services: Cash withdrawals, deposits, and balance inquiries are available 24/7.
(iv) NEFT & RTGS: Enables secure electronic fund transfers between banks.
(v) UPI & Digital Payments: Fast and secure transactions using digital wallets and QR codes.
Advantages of E-banking:
Provides convenience and saves time.
Reduces paperwork and enhances transaction speed.
Ensures secure and cashless transactions.
(b) Scheduled and Non-Scheduled Banks:
Answer: Banks in India are categorized into Scheduled and Non-Scheduled Banks based on their inclusion in the Second Schedule of the Reserve Bank of India (RBI) Act, 1934.
Scheduled Banks:
(i) These banks are listed under the Second Schedule of the RBI Act.
(ii) They must maintain a minimum reserve with the RBI.
(iii) They can avail of financial support from the RBI during crises.
(iv) Examples: State Bank of India (SBI), Punjab National Bank (PNB), and ICICI Bank.
Non-Scheduled Banks:
(i) These banks are not listed under the Second Schedule of the RBI Act.
(ii) They do not have to maintain a reserve with the RBI.
(iii) They have limited access to RBI’s financial assistance.
(iv) Examples: Small cooperative banks and local private banks.
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