RBSE Solutions for Class 7 Social Science Chapter 16 Reserve Bank of India (RBI) and Its Functions

Rajasthan Board RBSE Class 7 Social Science Chapter 16 Reserve Bank of India (RBI) and Its Functions

RBSE Solutions for Class 7 Social Science

RBSE Solutions for Class 7 Social Science Chapter 16 Reserve Bank of India (RBI) and Its Functions

RBSE Class 7 Social Science Reserve Bank of India (RBI) and Its Functions Intext Book Questions and Answers

Activity:

Question 1.
Make a list of the notes issued by the Reserve Bank of India.
Answer:
The list of the notes issued by the Reserve Bank of India is as follows:

  • ₹ 2 Note
  • ₹ 5 Note
  • ₹ 10 Note
  • ₹ 20 Note
  • ₹ 50 Note
  • ₹ 100 Note
  • ₹ 200 Note
  • ₹ 500 Note
  • 2000 ₹ Note (Activity )

Activity:

Question 1.
With the help of your teacher, write the names of 10 major banks of India.
Answer:

  • Reserve Bank of India
  • State Bank of India
  • Punjab National Bank
  • Bank of Baroda
  • Canara Bank
  • ICICI Bank
  • Bank of India
  • IDBI Bank
  • UCO Bank
  • OBC Bank (Oriental Bank of Commerce)

RBSE Class 7 Social Science Reserve Bank of India (RBI) and Its Functions Text Book Questions and Answers

Question 1.
Fill in the blanks:

  1. Central Bank of India is ………………………….
  2. The Reserve Bank of India’s work is to …………………………. and supervise the system of the country.
  3. The most popular account for individuals is ………………………….
  4. Completion period for recurring deposit account can be from to ………………………….
  5. Some banking activities can be done through to ………………………….
  6. In N.E.F.T., the amount is deposited to the beneficiary account within …………………………. hours.

Answer:

  1. Reserve Bank of India
  2. regulate, banking
  3. savings account
  4. 6 months, 120 months
  5. Mobile Banking
  6. two.

Question 2.
When was Reserve Bank of India established?
Answer:
Reserve Bank of India was established in the year 1935.

Question 3.
Name the present Governor of Reserve Bank of India.
Answer:
Uijit Patel.

Question 4.
Give one benefit of savings account as compared to current account.
Answer:
Interest is given for deposits in savings account whereas no interest is paid in a current account.

RBSE Solutions for Class 7 Social Science Chapter 16 Reserve Bank of India (RBI) and Its Functions

Question 5.
Write the names of different types of bank accounts?
Answer:
Names of different types of bank accounts are –

  • Savings account
  • Current account
  • Recurring deposit account and
  • Fixed deposit account
  • Savings account opened by a minor.

Question 6.
Name the account in which there is no interest.
Answer:
Interest is not paid in a current account.

Question 7.
What is R.T.GS.?
Answer:
R.T.G.S. (Real Time Gross Settlement) is such a system through which funds are transferred from a customer’s account in one bank to the other customer account in another bank by giving electronic instructions. In various cities, this is a feature to transfer amounts immediately from one account to another account. Through this minimum ₹ 2,00,000 can be transferred quickly.

Question 8.
What is NEFT?
Answer:
N.E.F.T. refers to – National Electronic Funds Transfer. If a person wants to pay to another person or company through NEFT, he can contact his bank and ask them to transfer the amount directly in the recipient account. The amount is transferred within 2 hours in a beneficiary account. There is no limit for minimum or maximum fund transfer through this device.

RBSE Solutions for Class 7 Social Science Chapter 16 Reserve Bank of India (RBI) and Its Functions

Question 9.
Explain briefly about internet banking?
Answer:
Internet Banking – Through internet banking people can do banking activities at anytime and from anywhere, without going to the branch. Through this online transfer (both credit-debit), account information can be acquired and bills can be paid. Online banking is also known as internet banking, web banking, virtual banking etc.

Question 10.
Differentiate between NEFT and RTGS?
Answer:
The main differences between NEFT and RTGS are as follows –

  • In RTGS electronic instructions are given to transfer amount from a customer account in one
    bank to another customer account in another bank whereas in NEFT the person has to contact his bank and ask them to transfer the amount directly in the recipient account.
  • In various cities, RTGS is a feature to transfer amount immediately from one account to another account whereas NEFT takes a period of two hours to transfer the amount.
  • Through RTGS, minimum ₹ 2,00,000 can be transferred through quick transfer but in NEFT there is no limit for minimum or maximum funds.

Question 11.
What is mobile banking?
Answer:
Mobile Banking – Using mobile phones for to monitor account balance, funds transfer and bill payment etc. banking activities is called mobile banking. After having registration from the bank customers can use this device.

RBSE Class 7 Social Science Reserve Bank of India (RBI) and Its Functions Important Questions and Answers

Objective Type Questions:

Question 1.
Central bank of India is –
(a) ICICI Bank
(b) Reserve Bank of India
(c) State Bank of India
(d) Bank of India
Answer:
(b) Reserve Bank of India

Question 2.
The card issued by the bank, to which the customer has the option of buying goods and services without paying any real cash payments, is called –
(a) Credit card
(b) Debit card
(c) PAN card
(d) Aadhar card
Answer:
(a) Credit card

RBSE Solutions for Class 7 Social Science Chapter 16 Reserve Bank of India (RBI) and Its Functions

Question 3.
The account in which a fixed amount is deposited every month for a certain period, is called –
(a) Current Account
(b) Savings Account
(c) Recurring Deposit Account
(d) Fixed Deposit Account
Answer:
(c) Recurring Deposit Account

Question 4.
The account in which no interest is paid on the deposited amount, is –
(a) Current Account
(b) Savings Account
(c) Recurring Deposit Account
(d) Fixed Deposit Account
Answer:
(a) Current Account

Question 5.
Reserve Bank of India was established in –
(a) the year 1835 AD
(b) the year 1947 AD
(c) the year 1950
(d) the year 1990
Answer:
(a) the year 1835 AD

RBSE Solutions for Class 7 Social Science Chapter 16 Reserve Bank of India (RBI) and Its Functions

Fill in the blanks:

  1. Coins and ₹ 1 notes are issued by ………………………
  2. Notes issued by the Reserve Bank of India has the signature of ……………………… Governor.
  3. …………………….. is an institution which accepts deposits and then lends money on interest.
  4. The ……………………… is primarily opened to run a business, trust or for union of individuals.
  5. In order to use ATM, the customer has to insert a ……………………… in the ATM.

Answer:

  1. Government of India
  2. RBI (Reserve Bank of India)
  3. Bank
  4. Current Account
  5. Debit card

Choose True/False statements from the following:

  1. State Bank of India is the central bank of the country.
  2. ₹ 1 note has the signature of the Governor of RBI.
  3. In current account, interest is given on the deposited amount.
  4. Recurring deposit accounts are opened for full period from 6 months to 120 months.
  5. Reserve Bank of India was established in the year 1950.

Answer:

  1. False
  2. False
  3. False
  4. True
  5. False

RBSE Solutions for Class 7 Social Science Chapter 16 Reserve Bank of India (RBI) and Its Functions

Very Short Answer Type Questions:

Question 1.
Explain the importance of Reserve Bank of India as a regulator.
Answer:
As a regulator, the Reserve Bank of India helps in maintaining the trust of the people in the banking system.

Question 2.
Which currencies are issued by the Reserve Bank of India?
Answer:
Except ₹ 1 note, all currencies are issued by the Reserve Bank of India.

Question 3.
Whose signature is on ₹ 1 note?
Answer:
The ₹ 1 note has signature of Finance Secretary, Government of India.

Question 4.
What is a bank?
Answer:
Bank is an institution which accepts deposits and then lends money on interest.

RBSE Solutions for Class 7 Social Science Chapter 16 Reserve Bank of India (RBI) and Its Functions

Question 5.
What is the deposit amount in the bank?
Answer:
When a bank accepts money from the people, it is called deposit amount.

Question 6.
Which amount is called a loan in a bank?
Answer:
When a bank lends money for various purposes, it is called a loan.

Question 7.
Through whom a minor can open an account in the bank.
Answer:
A minor can open an account by means of his natural or legal guardian.

Question 8.
Name any four banking services with new technology.
Answer:

  • R.T.G.S.
  • N.E.F.T.
  • Internet Banking
  • Mobile Banking

Question 9.
What is the benefit of debit card?
Answer:
There is no need for the holder of debit card customer to go to the bank branch. He can pay through ATM or electronically at stores.

Question 10.
When the cheque should be issued?
Answer:
Cheque should be issued only if there is sufficient funds in the account.

RBSE Solutions for Class 7 Social Science Chapter 16 Reserve Bank of India (RBI) and Its Functions

Short Answer Type Questions:

Question 1.
What is a credit card?
Answer:
The card issued by the bank in which the holder has the option of buying goods and services without paying any actual payment, is called a credit card. This is a form of an emergency loan.

Question 2.
What is a debit card? What are its advantages?
Answer:
An electronic card issued by the bank through which the card holder gets in contact with his bank for the purchase of services and to withdraw cash is called a debit card. It does not require the holder to go to the bank branch. He can pay through ATM or electronically at stores.

Question 3.
Write a brief note on ATM.
Answer:
ATM is an automated teller electronic machine through which customer can use various banking services like – cash withdrawal, to know of an account balance, bill payments and to transfer amount. It offers 24 hours service. It requires an ATM/debit card to use it.

Question 4.
When does the ATM machine allow a customer to access a transaction?
Answer:
To use the ATM machine, the customer has to insert the debit or credit card in it and after this he has to enter the Personal Identification Number/PIN number. The machine allows the customer to access the transaction only when the PIN number is correct.

Question 5.
What is a cheque?
Answer:
A cheque is an instrument which is written by an account holder to order his bank that the specified person or the cheque holder should be paid a certain amount written on it.

RBSE Solutions for Class 7 Social Science Chapter 16 Reserve Bank of India (RBI) and Its Functions

Question 6.
For whom the current account is opened for?
Answer:
The current account is primarily opened for business, like ownership, partnership firm, to run a government or private sector company, trust, union of individuals, who have a large number of transactions and payments daily. No interest is paid on the deposited funds.

Question 7.
What is the motive to open a savings account?
Answer:
Savings accounts are opened for the purpose of encouraging people to save and deposit their money. These accounts can be opened with single or joint names. Interest is paid on the savings account.

Essay Type Questions:

Question 1.
What is a recurring deposit account? By whom is it opened?
Answer:
Recurring Deposit Account is commonly called the RD account. In it, a fixed amount is deposited every month for a certain period and at the end of the said (decided) period, the total amount is refunded with interest. Withdrawal is not allowed in it but the bank may allow to close the account before the completion of the term. If money is not deposited in any month, some penalty has to be charged. Recurring deposit accounts are opened for a lull period ranging from 6 months to 120 months. These accounts are opened by those who want to save money regularly for a certain period and earn higher interest from savings account. These accounts can be opened by a single name or joint names.

Question 2.
What are fixed term deposit accounts?
Answer:
Fixed Deposit Account – These accounts are commonly known as FD (Fixed Deposit) account. By depositing a certain amount, these accounts are opened for a fixed period. The fixed period can be from 7 days to 10 years. Withdrawal is not allowed before completion of full term but if necessary, the account can be closed by paying certain penalties. On completion of the term, the lumpsum payment is made with interest of deposits. The said deposit period can be renewed for the next period.

RBSE Solutions for Class 7 Social Science Chapter 16 Reserve Bank of India (RBI) and Its Functions

Question 3.
What are the main functions of the Reserve Bank of India?
Answer:
The Reserve Bank of India is the central bank of the country. Its main task is to regulate and monitor the banking and financial system of the country. For this it does the following major works:

  • Working as a monetary authority.
  • Issuing currency.
  • Working as a government banker and its debt manager.
  • Working as a banker for banks.
  • Regulation and supervision of financial institution.
  • Managing foreign exchange.
  • Regulation and supervision of payment and settlement system.
  • Maintaining financial stability.

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