ECO 09 Solved Question Paper June 2026 gives you complete, exam-ready answers to the official IGNOU term-end paper for Money, Banking and Financial Institutions, the BDP B.Com commerce elective printed as ECO-009 this session. Two answers are open below so you can judge the quality; the other ten are in the full file on WhatsApp 9899436384.
ECO 09 key facts for the June 2026 term-end examination
- Course code: ECO 09 (printed ECO-009 on the June 2026 paper, ECO-09 on earlier papers)
- Subject: Money, Banking and Financial Institutions
- Programme: IGNOU Bachelor's Degree Programme (BDP), B.Com, Elective Course: Commerce (second-year course on eGyanKosh)
- Credits: 4
- Blocks and units: 4 blocks, 16 units
- Maximum marks: 50 (term-end exam 70% weightage, assignment 30%)
- Duration: 2 hours
- Questions in the June 2026 paper: 12 answerable items: Q1 to Q8 plus four short-note options in Q9
- Who it is for: Old-scheme BDP B.Com students only; CBCS B.Com (BCOMG) students do not study ECO 09
- Samples shown on this page: 2 (Q1 and Q6)
- Questions in the paid file: All 12 solved, including the 10 not answered on this page
What the ECO 09 Solved Question Paper June 2026 covers
ECO 09 Money, Banking and Financial Institutions is a commerce elective in IGNOU's Bachelor's Degree Programme (B.Com) that explains how money, banks, Indian financial institutions and global bodies such as the IMF and World Bank work.
The June 2026 paper has nine numbered questions across Sections A, B and C. Section A carries 12-mark questions on money, State Bank of India, the Indian money market and the World Bank. Section B has 8-mark questions on State Financial Corporations, regional rural banks, branch versus unit banking and UTI. Section C asks for two short notes out of four.
What makes this session unusual is that six of the eight long questions are near repeats of the June 2022 paper. Students who had worked through that paper walked in with a head start, and our file flags each repeat so you know which answers to revise first for the next term-end exam.
We checked this paper against every official ECO-09 paper we could pull from IGNOU's own websites. For older sessions of your other courses, our IGNOU Previous Year Question Paper section keeps them sorted by course code.
ECO 09 sample answers: Q1 on money and Q6 on regional rural banks
Two June 2026 ECO 09 answers are shown here in full, exactly as they appear in the paid file; the remaining 10 answers are in the full file only.
1. Define the term ‘money’. What are the functions and significance of money ? 4+8
1. Define the term ‘money’. What are the functions and significance of money ? 4+8
Meaning of money (4 marks)
Money is anything that is generally accepted as a means of payment for goods and services and for settling debts. D.H. Robertson defined it as anything widely accepted in payment for goods or in discharge of other kinds of business obligations. Geoffrey Crowther added that money also acts as a measure and a store of value.
Because money is defined by its role rather than its material, F.A. Walker famously said, “Money is what money does.” Two features make something money: general acceptability and trust backed by law. In India, money includes currency notes issued by the Reserve Bank of India, coins minted by the Government of India, and demand deposits that people use through cheques and digital payments.
Functions of money (4 marks)
Economists usually group the functions of money into primary, secondary and contingent functions, a classification associated with Kinley. A well-known couplet sums up the first four: money is a matter of functions four, a medium, a measure, a standard, a store.
- Medium of exchange: money removes the double coincidence of wants problem of barter. A farmer sells wheat for money and uses that money to buy cloth, so buying and selling are separated.
- Measure of value: the prices of all goods and services are expressed in one common unit, which makes comparison, accounting and the measurement of national income possible.
- Standard of deferred payments: loans, salaries and rents payable in future are fixed in money terms, which supports credit and long-term contracts.
- Store of value: income can be saved in money form without spoiling, unlike perishable goods under barter.
- Transfer of value: purchasing power moves easily from one person or place to another through bank transfers, drafts and payment systems.
- Contingent functions: money helps distribute national income among the factors of production, lets consumers and firms equalise marginal utilities and marginal productivities, forms the basis of the credit system and gives the holder liquidity.
Significance of money (4 marks)
- Consumption: guided by prices, consumers spread their income across goods to get the maximum satisfaction.
- Production: firms hire land, labour and capital, pay them in money and calculate costs and profits.
- Exchange and specialisation: money widens markets and supports division of labour and large-scale production.
- Capital formation: savings held as money are pooled by banks and financial institutions and lent for investment.
- Credit system: cheques, bills of exchange and bank credit are all built on money.
- Economic policy: the central bank manages money supply and interest rates to control inflation and support growth; in India the RBI does this through its monetary policy.
- Public finance: taxes, government spending and public debt are all planned and managed in money terms.
Conclusion: Money is the backbone of a modern exchange economy. It makes exchange, saving, investment and economic planning possible, which is why examiners expect clear definitions, the full list of functions and real Indian examples in a 12-mark answer.
6. What are regional rural banks ? Explain their salient features. 8
6. What are regional rural banks ? Explain their salient features. 8
Meaning and origin
Regional Rural Banks (RRBs) are scheduled commercial banks set up to provide credit and other banking services to small and marginal farmers, agricultural labourers, artisans and small entrepreneurs in rural areas. They combine the local touch of a co-operative with the business discipline of a commercial bank.
RRBs were created on the recommendation of the Working Group on Rural Banks (1975) chaired by M. Narasimham. They were first set up under an Ordinance of 26 September 1975, later replaced by the Regional Rural Banks Act, 1976. The first five RRBs started on 2 October 1975, including Prathama Bank at Moradabad, sponsored by Syndicate Bank.
Salient features
- Sponsor bank: each RRB is sponsored by a commercial bank, mostly in the public sector, which supports it with capital, staff training and management.
- Shared ownership: share capital is held by the Central Government (50%), the sponsor bank (35%) and the State Government (15%). After the 2015 amendment RRBs may raise capital from other sources, but the Centre and sponsor bank together must keep at least 51%.
- Limited area of operation: each RRB works in notified districts of one state, so lending decisions stay close to local needs.
- Target group and priority lending: credit goes mainly to weaker rural sections, and RBI norms require RRBs to direct 75% of their adjusted net bank credit to the priority sector.
- Dual control: the RBI regulates RRBs as banks, while NABARD supervises them and provides refinance.
- Local staff and low cost: staff are recruited mainly from the area served, which keeps costs low and service in the local language.
- Full banking functions: RRBs accept deposits, give crop loans and loans for rural trade and crafts, and handle remittances and government schemes.
- Consolidation: amalgamations have cut their number from 196 to 28. The latest round under the One State, One RRB policy took effect on 1 May 2025, leaving 28 RRBs in 26 states and 2 Union Territories.
Conclusion: RRBs remain the main bank for many Indian villages. Their local focus, shared ownership and priority lending make them a key tool of financial inclusion, which is why they keep appearing in ECO-09 papers.
Questions answered only in the full file
These 10 items from the June 2026 ECO 09 paper are answered only in the full file. Their text appears below exactly as printed on the paper, without answers.
- 2. Explain the establishment, objectives and progress of State Bank of India. 4+8
- 3. What is money market ? Briefly describe the structure of the Indian money market and also point out the defects of Indian money market. 4+8
- 4. Explain the objectives of the World Bank. How far has it succeeded in achieving those ? 4+8
- 5. What types of assistance are provided by State Financial corporations ? Evaluate their performance. 8
- 7. Discuss the advantages and disadvantages of branch and unit banking system. 8
- 8. Explain the establishment, objectives and role of UTI. 8
- 9. Write short notes on any two of the following : 5+5
- (a) Principles of Note Issue
- (b) Role of State Bank of India
- (c) Evil of Money
- (d) Control of Inflation
State Bank of India appears twice in this paper, once as a 12-mark question and once as a short note, and the World Bank question returns from June 2022 with a new 4+8 split. Both answers are in the full file.
ECO 09 Money, Banking and Financial Institutions block and unit map
ECO 09 is taught through 4 blocks and 16 units, moving from monetary theory to Indian banks, non-bank financial institutions and the international financial system.
| Block | Units | Topics IGNOU has asked from this block |
|---|---|---|
| Block 1: Monetary Theory | Units 1 to 4: Money: Nature, Functions and Significance; Demand for and Supply of Money; Money and Prices; Inflation | Functions and evils of money; motives for holding money and the liquidity trap; control of inflation |
| Block 2: Banking Theory and Practice | Units 5 to 9: Commercial Banking; Commercial Banking in India; Central Banking; Reserve Bank of India; Indian Money Market | Branch versus unit banking and credit creation; State Bank of India and principles of note issue; RBI credit control and defects of the Indian money market |
| Block 3: Non Banking Financial Institutions in India | Units 10 to 13: Non-Bank Financial Intermediation, An Overview; Term-Lending Financial Institutions, All India Level; Term-Lending Financial Institutions, State Level; Agricultural Finance in India | Bank versus non-bank intermediaries and UTI; IFCI, IDBI and State Financial Corporations as term lenders; regional rural banks and NABARD |
| Block 4: International Financial System | Units 14 to 16: International Financial System, An Introduction; International Monetary Fund; World Bank | IMF objectives and Special Drawing Rights; World Bank objectives and success; international liquidity and fund flows |
If time is short, start with Blocks 1 and 2, which supplied most of the long questions in June 2026. Our ECO 09 Study Material notes follow the same block order, so you can move from the solved answers straight into the matching unit.
You can confirm the official block list yourself on IGNOU's eGyanKosh ECO-09 course page.
ECO 09 Question Paper pattern and marks split for June 2026
The June 2026 ECO 09 paper is a 2-hour, 50-mark test in three sections: two 12-mark answers, two 8-mark answers and two 5-mark short notes.
| Section | Choice given | Marks per answer | Section total | June 2026 topics on offer |
|---|---|---|---|---|
| Section A | Any 2 of Q1 to Q4 | 12 (split 4+8) | 24 | Money, SBI, money market, World Bank |
| Section B | Any 2 of Q5 to Q8 | 8 | 16 | SFCs, RRBs, branch and unit banking, UTI |
| Section C | Any 2 of 4 notes in Q9 | 5 | 10 | Note issue, role of SBI, evil of money, control of inflation |
| Total | 6 answers in 2 hours | Mixed | 50 | 12 answerable items on offer |
Not every IGNOU ECO 09 Question Paper follows this layout. December 2023, June 2025 and December 2025 used a flat format: attempt any five of nine questions, 10 marks each. June 2018, December 2020, June 2021, June 2022, December 2024 and June 2026 used the three-section format shown above.
Because the format can switch between sessions, solve at least one paper of each type before your exam. Our BCOM Question Paper collection lists other B.Com elective papers the same way.
The term-end exam carries 70% weightage in your final ECO 09 result and the assignment carries 30%, as IGNOU states in its ECO-09 assignment booklets.
Most repeated ECO 09 topics in IGNOU term-end papers
Across nine official ECO 09 papers from June 2018 to June 2026, the Indian money market appeared in every one, inflation in eight and development banks in six.
Papers used: June 2018, December 2020 (exam held in February 2021), June 2021, June 2022, December 2023, December 2024, June 2025, December 2025 and June 2026, all from ignou.ac.in or webservices.ignou.ac.in. We could not find official copies of December 2021, December 2022, June 2023 or June 2024, so this is a nine-paper count.
| Topic | Block | Sessions where it appeared | Count out of 9 | In June 2026? |
|---|---|---|---|---|
| Indian money market (components, structure, defects) | Block 2 | J18, D20, J21, J22, D23, D24, J25, D25, J26 | 9 | Yes, Q3 |
| Inflation (control, causes, effects, types) | Block 1 | J18, D20, J22, D23, D24, J25, D25, J26 | 8 | Yes, Q9(d) |
| Development banks (IFCI, IDBI, NABARD) | Block 3 | J18, D20, J22, D24, J25, D25 | 6 | No |
| Meaning and functions of money | Block 1 | D20, J22, D23, D25, J26 | 5 | Yes, Q1 |
| Regional rural banks | Block 3 (Unit 13) | D20, D24, J25, D25, J26 | 5 | Yes, Q6 |
| World Bank | Block 4 | J21, J22, J25, D25, J26 | 5 | Yes, Q4 |
| International Monetary Fund | Block 4 | J18, J21, D23, D24, J25 | 5 | No |
| Principles of note issue | Block 2 | J18, J21, J22, D23, J26 | 5 | Yes, Q9(a) |
| Branch versus unit banking | Block 2 | J18, J21, J22, D23, J26 | 5 | Yes, Q7 |
| State Bank of India | Block 2 | J18, J21, J22, J26 | 4 | Yes, Q2 and Q9(b) |
| Evils of money | Block 1 | J18, J21, D25, J26 | 4 | Yes, Q9(c) |
| RBI credit control (incl. open market operations) | Block 2 | J21, J22, D23, D25 | 4 | No |
| State Financial Corporations | Block 3 | D20, D23, D25, J26 | 4 | Yes, Q5 |
| Unit Trust of India | Block 3 | D20, J22, D23, J26 | 4 | Yes, Q8 |
| Foreign exchange market | Block 4 | J22, D24, J25, D25 | 4 | No |
| Credit creation by commercial banks | Block 2 | D20, D24, J25 | 3 | No |
Use this table as your revision order and pair it with our IGNOU Important Questions page when you plan the rest of your term-end subjects.
How our ECO 09 answers are written and checked
Every ECO 09 answer is written to the marks printed against the question and then checked by a commerce reviewer before it goes into the file.
A 12-mark Section A answer runs to roughly 600 to 800 words with a definition, structured points and a conclusion. An 8-mark answer runs to 400 to 500 words and a 5-mark note stays near 250 words. Where a question is split 4+8, the answer is split the same way so the examiner can see each part.
Facts about institutions, such as founding dates, ownership shares and the current number of RRBs, are checked against official sources including government notifications, RBI material and IGNOU's own blocks, rather than copied from older guidebooks.
Answers are written by Prateek Talwar and reviewed by Sheetal Kirola. Where June 2026 repeats a June 2022 question, the answer is reworked for the new wording, because IGNOU changed several mark splits: the World Bank question moved from 6+6 to 4+8 and the money market question from 4+4+4 to 4+8.
ECO 09 solved file index for all 12 June 2026 items
The full ECO 09 file solves all 12 answerable items in the June 2026 paper: 2 are open on this page and 10 are in the full file only.
ECO 09 is a theory-only course with no practical or record work, so instead of a practical file index this table maps each June 2026 question to its block and shows where its answer sits.
| Question | Topic | Marks | Block | Where to find it |
|---|---|---|---|---|
| Q1 | Meaning, functions and significance of money | 4+8 | Block 1 | On this page |
| Q2 | State Bank of India: establishment, objectives, progress | 4+8 | Block 2 | Full file only |
| Q3 | Indian money market: structure and defects | 4+8 | Block 2 | Full file only |
| Q4 | World Bank objectives and how far they were achieved | 4+8 | Block 4 | Full file only |
| Q5 | State Financial Corporations: assistance and performance | 8 | Block 3, Unit 12 | Full file only |
| Q6 | Regional rural banks and their salient features | 8 | Block 3, Unit 13 | On this page |
| Q7 | Branch and unit banking: advantages and disadvantages | 8 | Block 2 | Full file only |
| Q8 | UTI: establishment, objectives and role | 8 | Block 3 | Full file only |
| Q9(a) | Short note: principles of note issue | 5 | Block 2 | Full file only |
| Q9(b) | Short note: role of State Bank of India | 5 | Block 2 | Full file only |
| Q9(c) | Short note: evil of money | 5 | Block 1 | Full file only |
| Q9(d) | Short note: control of inflation | 5 | Block 1 | Full file only |
Programmes that include ECO 09 Money, Banking and Financial Institutions
ECO 09 is an elective commerce course in IGNOU's Bachelor's Degree Programme, studied by B.Com students of the older BDP scheme and listed on eGyanKosh under B.Com second year.
If you are enrolled in the IGNOU Bachelor of Commerce (BCom) / Bachelor's Degree Programme (BDP), ECO 09 sits alongside other ECO commerce electives such as ECO 10 Elements of Costing and ECO 11 Elements of Income Tax.
IGNOU's assignment folders file ECO-09 under B.Com Old. Students of the newer CBCS B.Com (BCOMG) do not study ECO 09, so if your enrolment is in BCOMG, this solved paper is not for your exam.
How to get the full ECO 09 Solved Question Paper on WhatsApp
Message WhatsApp 9899436384 with “ECO 09 June 2026” and our team will share the price and the complete PDF with all 12 answers.
- Save 9899436384 in your phone.
- Send the course code ECO 09, the session June 2026 and your medium (English or Hindi).
- Confirm your order and receive the PDF in the same WhatsApp chat.
The IGNOU ECO 09 Solved Question Paper file has all 12 solved items: the 2 answers above plus the 10 listed under the full-file heading, with block references and the repeat flags from our nine-paper table.
ECO 09 FAQs: June 2026 solved paper
These answers cover what students most often ask us about the ECO 09 June 2026 solved paper.
Is the ECO 09 Solved Question Paper based on the official June 2026 paper?
Yes. We used the official IGNOU June 2026 term-end paper for ECO-009 Money, Banking and Financial Institutions, with the same question numbers and wording. Our subject experts then wrote full answers to every item, following the mark split printed against each question. The question text on this page is reproduced exactly as it appears on the paper, so you can match it line by line.
How many answers does the full ECO 09 file contain, and how do I get it on WhatsApp?
The full ECO 09 file contains 12 solved answers: Q1 to Q8 and all four short notes in Q9. Two of them, Q1 and Q6, are open on this page and the other 10 are in the file only. Send a WhatsApp message to 9899436384 with the code, the June 2026 session and your medium, and our team will confirm the price and share the PDF.
Which ECO 09 questions are solved in full on this page?
Two ECO 09 questions are solved in full here. Q1 covers the definition, functions and significance of money for 12 marks, and Q6 explains regional rural banks and their salient features for 8 marks. They show the depth, structure and fact-checking you get in the paid file. Every other question is listed by its printed text only, with no answers or hints.
What is the ECO 09 exam pattern in June 2026?
The June 2026 ECO 09 paper ran for 2 hours and carried 50 marks. Section A asked for any two of four 12-mark questions, Section B any two of four 8-mark questions, and Section C any two of four 5-mark short notes. The December 2023, June 2025 and December 2025 papers used a different format: any five out of nine questions at 10 marks each.
Which ECO 09 topics repeat most often in IGNOU papers?
In the nine official ECO 09 papers we checked, from June 2018 to June 2026, the Indian money market appeared in every one and inflation in eight. Development banks such as IFCI, IDBI and NABARD came up six times, while money, regional rural banks, the World Bank, the IMF, note issue and branch versus unit banking appeared five times each. Revise these topics first.
Is ECO 09 part of the new IGNOU B.Com (BCOMG)?
No. ECO 09 belongs only to the older Bachelor's Degree Programme (BDP) B.Com scheme, where it is an elective commerce course, and IGNOU's assignment folders list it under B.Com Old. Students of the newer CBCS B.Com (BCOMG) do not study ECO 09, so this solved paper is not meant for them. If you are unsure, check the course codes on your hall ticket before ordering.
How long should a 12-mark ECO 09 answer be?
A 12-mark ECO 09 answer should usually run to about 600 to 800 words in a 2-hour paper. Follow the mark split printed on the paper: for a 4+8 question, write a short, precise definition for the first part and give the larger second part numbered points with Indian examples. End with a two-line conclusion so the examiner sees a complete answer.
Can the ECO 09 June 2026 paper help me prepare for December 2026?
Yes. IGNOU often repeats ECO 09 questions: six of the eight long questions in June 2026 had already appeared in June 2022, sometimes with a new mark split. Studying all 12 June 2026 answers, together with our nine-paper repeat table, gives you tested material on money, banks, Indian financial institutions and global bodies for the December 2026 term-end exam.