Requirements of reserves acts as a limit to money (credit) Creation. Explain
Answers
Answer:
Thinking about the text
(Page 119)
Question 1.
Given in the box are some headings. Find the relevant paragraphs in the text to match the headings.
An Orphaned Cub; Bruno’s Food-chart; An Accidental Case of Poisoning; Playful Baba; Pain of Separation; Joy of Reunion; A Request to the Zoo; An Island in the Courtyard.
Answer:

II. Answer the following questions.
Question 1.
“I got him for her by accident.”
Who says this?
Who do ‘him’ and ‘her’ refer to?
What is the incident referred to here?
Answer:
The author says this.
‘Him’ refers to the baby bear and ‘her’ refers to the author’s wife.
The incident refers to the catching of the baby bear.
Question 2.
“He stood on his head in delight.”
Who does ‘he’ refer to?
Why was he delighted?
Answer:
‘He’ refers to the baby bear.
‘He’ was delighted to see the author’s wife after a long time.
Question 3.
“We all missed him greatly: but in a sense we were relieved.”
Who does ‘we all’ stand for?
Who did they miss?
Why did they nevertheless feel relieved?
Answer:
The author, his wife and son.
They missed the baby bear.
They felt relieved because it was getting difficult to keep the baby bear at home.
III. Answer the following questions in 30 to 40 words each.
Question 1.
On two occasions Bruno ate/drank something that should not be eaten/ drunk. What happened to him on these occasions?
Answer:
Bruno ate Barium Carbonate which was put to kill the rats and mice. Paralysis set in to the extent that he could not stand on his feet. Once he drank one gallon of old engine oil. But it had no ill effects whatever.
Question 2.
Was Bruno a loving and playful pet? Why, then, did he have to be sent away?
Answer:
Yes, Bruno was a loving and playful pet. But he was mischievous also. The bear became very attached to the narrator’s two Alsatian dogs and the children of the tenants. Bruno had grown many times the size he was when he came. Now her name was changed to Baba. Now he was getting too big to be kept at home. So he was sent to a zoo.
Question 3.
How was the problem of what to do with Bruno finally solved?
Answer:
Bruno was not feeling happy after getting separated from the narrator’s family. He was getting weak everyday. The narrator’s wife went to Mysore to meet Bruno. Bruno. After seeing his pitiful condition she decided to get Bruno back home. The narrator and his wife made special arrangement for Bumo and created all facility for him. At last Bruno was got back home in a small cage.
Thinking about language
(Page 119)
I.
Question 1.
Find these words in the lesson.
They all have ie or ei in them.

Answer:
Field; ingredients; height; mischievous; friends; eighty-seven; relieved; piece.
Question 2.
Now here are some more words. Complete them with ei or ie. Consult a dictionary if necessary.

(There is a popular rule of spelling: ‘i’ before ‘e’ except after ‘c’. Check if this rule is true by looking at the words above.)
Answer:
believe; receive; weird; leisure; seize; weight; reign; feign; grief; pierce This rule is applicable only in the case of ‘believe’ ‘grief’ and ‘pierce’ words. The other words have ei instead of ie.
Question 3.
Here are some words with silent letters. Learn their spelling. Your teacher will dictate these words to you. Write them down and underline the silent letters.

Answer:
For self-attempt at class level.
The silent letters are underline as under:

III. How to look at an Index
An index is a list of names or topics that are to be found in a book. It is a list arranged in alphabetical order at the end of a book. The following paragraph shows that the doctor is consulting the index of a medical book to find out which injection is appropriate for Bruno.
“Out came his medical books, and a feverish reference to index began: What poison did you say, sir ?” “Barium carbonate”, “Ah yes—B—Ba— Barium Salts—Ah ! Barium carbonate! Symptoms—paralysis—treatment— injections of… Just a minute, sir. I’ll bring my syringe and the medicine.”
Question 1.
You have read about the French Revolution and you want to know more about the Third Estate in the context of the French Revolution. You can refer to the index of the book Living World History by T. Walter Wallbank and Arnold Schrier:
Page no. 813
French-Algerian War, 696
French and Indian War, 370, 401
French Revolution, 393, 404-405, 408, 427, 489
Freud (froid), Sigmund [1856-1939], 479, illus. 477
Frobisher (frŌ’bish cr), Martin [1535-1594], 321,338
Third Coalition, 415
Third Communist International See Comintern
Third Estate (France), 404, 405
Third Reform Bill, 454
Third Reich (rîH), 641, 643, 652, 653
On which pages in this book will you find information
The given statement is not correct because requirement of reserves is one of the tools for controlling credit creation.
Explanation:
- Requirement of reserves do not act as a limit to credit creation. In fact, this requirement controls the economic problems such as inflation, deflation, depreciation and appreciation of the currencies.
- The requirement of maintaining reserves is also important for keeping the banking system and economic system of a country in proper shape.
- If there is no requirement of reserves, it could lead to over production of money which leads to economic problems such as inflation.