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NCERT Solutions for Class 12 Macro Economics Chapter-3

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Class 12 NCERT Solutions Macro Economics - Money and Banking - Free PDF Download
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The branch of economics that deals with the behaviour, decision making, structure, and performance of a country as a whole is called Macroeconomics. Derived from the Greek word ‘Makros’ meaning large, it deals with the issues and relationship of the country’s economy as a whole. A student from Macroeconomics Class 12 Chapter 3 learns the ideals of the capitalist economy, which includes factors like the role of government, private sector, external sector or foreign and business.

NCERT Solutions for Class 12 Macro Economics Chapter 3 Money and Banking part-1
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FAQ (Frequently Asked Questions)

1. How to Score Well in Class 12th Macroeconomics Chapter 3 for Boards?

Ans. To ace in Economics exam, one needs to have a quantitative and qualitative study which involves attending crucial lectures, taking notes, devoting time for revision, practising from the question paper and grasping definitions. If a student answers the questions with a graph and follows a mark scoring pattern of answering then scoring well will be easy.


A good technique of smart answering is to highlight the significant points and use bullet points to enhance visibility. Selecting the questions with internal choices to attempt, and marking them beforehand will be beneficial. Again referring to NCERT books and solutions will be fruitful for a 12th class student.

2. What is the Demand and Supply of Money?

Ans. The money supply is the total amount of monetary assets available in an economy at a period. Moreover, the demand for money involves the desired holding of financial assets which is recorded as it affects the inflation, exchange rate, price level of goods, and the business cycle.


It also expands the supply of money more slowly than average. This process is implemented to deal with unemployment and inflation of a country.  Bonds, GDP, flat money, demand deposits, etc. also determines the working of money and supply.

3. What do you Mean by Demonetization?

Ans. The act of stripping a currency unit of its status as a legal tender of a country is called  Demonetization. It has been used as a tool to steady the currency and fight inflation for a smooth flow of economy and trade. This is a way to replace the old money with new currency and keep a check on black and grey markets.


The Indian government in 2016 decided to demonetize the 500 and 1000 rupee notes. Without warning, Prime Minister Narendra Modi announced the two prominent denominations of a currency system to be stopped and exchange them for newly introduced 2000 rupee and 500 rupee bills.