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Explain the role of… (Social Science 2026 32/5/1 Q36)

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Social ScienceCBSE Class 10 · Board exam 2026, set 32/5/1 · 3 marks · Short answer

CBSE Class 10 Social Science 2026: question 36

Set in the CBSE Class 10 board exam of 2026, paper 32/5/1, section D, question 36, for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q36 · 3 marks · Short answerMoney and Credit

Explain the role of Reserve Bank in Indian economy.

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 32/5/1.

Hints

Open one hint at a time and try again before the next.

Hint 1

Recall who prints and issues rupee notes (except the one-rupee note).

Hint 2

Think of how the RBI supervises banks.

Hint 3

Think about who must receive loans besides big businesses.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. The Reserve Bank of India issues currency on behalf of the central government.

    1 mark

  2. It supervises the functioning of formal sources of loans. It checks that banks maintain the minimum cash balance against their deposits. It also checks that banks lend not only to profit-making businesses and traders but also to small farmers, small industries and small borrowers.

    1 mark

  3. Banks submit information periodically to the RBI on how much they lend, to whom and at what interest rates. In this way the RBI ensures that cheap and affordable credit is available to all, which is essential for the country's development.

    1 mark

Answer: The RBI issues currency, supervises banks (cash reserves, lending to small borrowers, interest rates) and ensures affordable credit for all.

Where the marks are

  • Issues currency on behalf of the government (1 mark)
  • Monitors banks: cash reserve and fair lending to all sections (1 mark)
  • Collects information on lending and rates; ensures affordable credit (1 mark)

Revise the chapter

  • Chapter: Money and Credit (notes, formulas, where marks are lost and every past question)
Practise this chapterBoard-style questions from Money and Credit, one at a time, marked against the answer key and marking points.Back to the full paper2026 board paper, set 32/5/1: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.