Question

(a) Mention two ways by which efficiency of labour can be improved.

(b) What does the term ‘nationalisation of banks’ mean ?

(c) Why is India considered to be in a virtual debt trap ?

(d) Give any two reasons for giving the monopoly right of note issue to the Central Bank.

(e) Mention any two duties of a consumer.

Answer 1

(a) (i) Training 

(ii) By using technology 

(b) Nationalisation is a process whereby a national government or state takes over the private sector. Government of India decided to nationalise 14 major commercial banks in 1969. 

(c) Virtual debt trap is a situation under which a borrower is led into a cycle of reborrowing, or rolling over, their loan payments because they are unable to afford the schedule payments on the principal of loan. 

(d) (i) This brings uniformity to the monetary system. 

(ii) The currency issued by the Central Bank is its monetary liability. It ensures public faith in the currency system. 

(e) (i) He/She should be aware of his rights. 

(ii) He/She should be aware of his duties.