II. Very Short Answer Questions
Question 1. What are the services included in Service
businesses?
Answer: Educational, Medical, Hospitality and banking are
the services included in service businesses. Bank service is the nerve center
of industry and commerce in a country.
Question 2. Write the meaning of 'Bank'.
Answer: In simple words, bank is an institution, which deals
in money and credit. The Bank, normally refers to Commercial Bank.
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III. Short Answer Questions
Question 1. Mention the importance of banking services.
Answer: Banking service is the nerve centre of industry and
commerce in a country. It plays a vital role by providing the money required
for their regular functioning and development.
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IV. Long Answer Questions
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Question 1. Classify the various functions of Reserve Bank
of India.
Answer: The functions of the RBI can be grouped under three
heads: (i) CO Leadership and Supervisory Functions,
(ii) Traditional Functions and,
(iii) Promotional Functions.
(i)CO Leadership and Supervisory Functions:
1. India's Representative in World Financial Institutions
2. Regulator and Supervisor of Indian Banking System
3. Monetary Authority
4. Closely Monitoring Economic Parameters
5. Promptly Responding to New Challenges
(ii) Traditional Functions:
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1. Banker and Financial Advisor to the Government
2. Monopoly of Note Issue
3. Bankers Bank
4. Controller of Credit and Liquidity
5. Quantitative Methods of Credit Control
6. Qualitative Credit Control Measures
7. Lender of the Last Resort
8. Clearing House Services
9. Custodian of Foreign Exchange Reserves
10. Maintenance of Foreign Exchange Rate
11. Collection and Publication of Authentic Data
(iii) Promotional Functions:
1. Nurturing Banking Habits among the Public
2. Grievance Settlement Measures
3. Agricultural Development
4. Promotion of Small Scale Industries
5. Facilitates Foreign Trade
6. Supports Cooperative Sector