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“The Reserve Bank… (Class 12 Economics SQP 2025-26, Q12B)

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EconomicsCBSE Class 12 · Sample paper, session 2025-26 · 3 marks · Short answer

CBSE Class 12 Economics sample paper 2025-26: question 12(B)

From the official CBSE sample question paper for 2025-26, section A, question 12(B), for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q12(B) · 3 marks · Short answerMoney and Banking

“The Reserve Bank of India (RBI) provides several banking services to the Government.”
Do you agree with the given statement? Give valid explanation in support of your answer.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2025-26.

Hints

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

Hint 1

Which bank holds the government's accounts?

Hint 2

Who lends to the government when it is short of funds?

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. Yes. The RBI acts as the banker to the Government: it keeps the government's accounts, accepts its deposits and makes payments on its behalf.

    1 mark

  2. It handles exchange, remittances and other banking operations for the government.

    1 mark

  3. In times of need (for example a financial crisis or a temporary shortfall), it lends to the government so that the government can meet its obligations smoothly.

    1 mark

Answer: Yes. The RBI keeps government accounts and deposits, makes payments and remittances for it, and lends to it when needed.

Where the marks are

  • Agreement with explanation of RBI as government's banker (marked as a whole, 3)

Revise the chapter

  • Chapter: Money and Banking (notes, formulas, where marks are lost and every past question)
Practise this chapterBoard-style questions from Money and Banking, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2025-26: 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.