Banking class 12 cbse Sample Question Paper 2025-26 question 20-24

 video 17

Answer any 3 out of the given 5 questions in 50– 80 words each (4 x 3 = 12 marks) 

Q. 20 What are the advantages of keeping shares in demat account? 4 

Q. 21 Explain the variety of services offered by the bank branches? 4 

Q. 22 M deposited ₹.1,00,000 in Punjab National bank @ 5% p.a. interest compounded annually for 3 years and N gave ₹. 1,00,000 to his friend @ 5% p.a. simple interest for 3 years. 

(1) How much amount will be received by M? (1) 

(2) How much amount will be received by N? (1) 

(3) Who will get more money at the end of three years? Give reason. (2)

Q. 23 P & Q are students and are preparing a project on impact of price rise on common people of country. Not happy with the situation of price rise they asked their teacher about the ways in which increase in prices is controlled by authorities. In relation to above context, explain the monetary policy of RBI and explain any two of its tools. 

Q. 24 Briefly explain any four liabilities of bank indicated in its balance sheet. 

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## Q.20 Advantages of keeping shares in demat account  

**Answer:**  

A demat account provides safe and electronic storage of shares, eliminating risks of theft, loss, or damage of physical certificates. It allows easy transfer, faster settlement, and reduces paperwork. Investors can monitor holdings online, trade instantly, and receive dividends directly in their account. Overall, it ensures convenience, security, and efficiency in managing investments.  

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## Q.21 Variety of services offered by bank branches  

**Answer:**  

Bank branches offer multiple services including deposit accounts, withdrawals, loans, and remittances. They provide lockers for valuables, issue debit/credit cards, and facilitate cheque clearing. Customers can access investment products, insurance, and financial advice. Branches also handle government transactions like tax payments and pensions. These services make banks a one‑stop solution for financial needs, ensuring customer convenience and trust.  

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## Q.22 Compound vs Simple Interest case  

**Answer:**  

M deposits ₹1,00,000 at 5% compound interest annually for 3 years. Amount = \(100000 \times (1.05)^3 = ₹1,15,762\).  

N lends ₹1,00,000 at 5% simple interest for 3 years. Amount = \(100000 + (100000 \times 0.05 \times 3) = ₹1,15,000\).  

Thus, M receives ₹762 more because compound interest grows faster as interest is added to principal each year, unlike simple interest which remains fixed.  

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## Q.23 Monetary policy of RBI and its tools  

**Answer:**  

Monetary policy is RBI’s method to control money supply and inflation. It ensures economic stability and growth. Two tools are:  

- **Repo Rate**: RBI lends to banks at this rate; lowering it encourages borrowing and spending.  

- **Reverse Repo Rate**: RBI borrows from banks; raising it absorbs excess liquidity.  

Together, these tools help regulate inflation, stabilize currency, and maintain financial discipline in the economy.  

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## Q.24 Four liabilities of a bank in its balance sheet  

**Answer:**  

Bank liabilities include:  

1. **Deposits**: Money held from customers in savings, current, and fixed accounts.  

2. **Borrowings**: Funds borrowed from RBI or other banks.  

3. **Bills payable**: Outstanding obligations like demand drafts issued.  

4. **Other liabilities**: Expenses payable, accrued interest, and provisions.  

These liabilities reflect the bank’s obligations to customers and institutions, forming a major part of its financial structure.