ASSEB Class 12 Finance Solved Paper - 2025| H.S. 2ND YEAR

ASSEB Class 12 Finance Solved Paper - 2025| H.S. 2ND YEAR

2025
FINANCE
Full Marks: 80
Pass Marks: 24
Time: Three hours
The figures in the margin indicate full marks for the questions.

 

1. Answer any six from the following questions: 1x6=6

(a) Reserve Bank of India is the apex monetary institution of India.

(b) State the meaning of e-banking.

Ans:- E-banking means carrying out banking transactions such as balance checks, funds transfers and payments through electronic platforms such as internet, ATMs and mobile apps.

(c) Name the oldest stock exchange of our country.

Ans:- The oldest stock exchange in our country is the Bombay Stock Exchange (BSE).

(d) Write the full form of OTCEI.

Ans:- The full form of OTCEI is Over the Counter Exchange of India.

(e) The money market deals with the short-term lending and borrowing of fund.

(f) In India who issues all notes other than one-rupee notes?

Ans:- In India, all notes other than one rupee notes are issued by the Reserve Bank of India (RBI).

(g) NSE was set up in which year?

Ans:- NSE (National Stock Exchange) was established in 1992.

(h) What is liquidity ratio?

Ans:- Liquidity ratios are a financial metric used to determine an institution's ability to pay its short-term liabilities from its short-term assets. Examples include the current ratio and the quick ratio.

2. Answer the following questions briefly: 2x4=8

(a) What is bank rate?

Ans:- The bank rate is the interest rate at which the central bank of a country (such as the Reserve Bank of India) lends money to domestic commercial banks, usually as long-term loans, without any security or collateral. It is a major tool used by central banks to control the money supply in the economy and to control inflation.

(b) Give two objectives of GICI.

Ans:- The General Insurance Corporation of India (GICI) has two objectives:-

(i) To carry on the general insurance business such as fire, accident and theft insurance, in addition to life insurance.

(ii) To aid and encourage its subsidiaries to conduct insurance business efficiently.

(c) What is secondary capital market?

Ans:- The secondary capital market is a market where investors trade already issued financial securities, such as stocks and bonds, among themselves. In this market, transactions take place between investors and not directly with the issuing companies, thereby providing liquidity and pricing for securities after their initial issuance.

(d) State any two uses of ATM.

Ans:- There are two uses of ATM (Automated Teller Machine):-

(i) Withdrawing cash from the bank account at any time.

(ii) Checking the bank account balance instantly.

3. Answer any four from the following: 3x4=12

(a) Write three objectives of NABARD.

Ans:- NABARD has three objectives:-

(i) Providing financial assistance to rural areas: NABARD provides loans to farmers, rural entrepreneurs and small businesses to promote agriculture, small industries and other rural economic activities.

(ii) Promoting sustainable and equitable rural development: NABARD aims to ensure long-term development in rural areas, with a focus on infrastructure, modern farming and self-reliance.

(iii) Increasing credit flow and rural infrastructure: NABARD seeks to increase the availability of institutional credit and provide assistance in building or improving essential rural infrastructure such as irrigation, roads and storage.

(b) What is cash credit? Give two advantages of cash credit.

Ans:- A cash credit is a short-term credit facility provided by banks that allows businesses to withdraw funds up to an approved limit against collateral, usually to meet daily working capital needs. The borrower can withdraw and deposit funds from this account as required, paying interest only on the amount utilised (inference from standard financial knowledge, as this is not directly mentioned in the search results).

Two benefits of cash credit:-

(i) Flexibility in withdrawals: Businesses can withdraw funds multiple times up to the sanctioned limit, making it easier to meet fluctuating working capital requirements.

(ii) Interest is charged only on the amount utilised: Unlike term loans, interest is payable only on the amount actually utilised, and not on the entire loan limit (standard financial concept).


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