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प्रश्न
Answer in detail:
What are the secondary functions of commercial banks?
उत्तर
The agency functions and the general utility functions are classified as the secondary functions of commercial banks.
Agency functions
The commercial banks perform various agency functions with the primary purpose of acceptance of deposits and granting of loans. Their functions include: i. Transfer of funds − The banks provide an easy flow of funds from place to place via mail transfers, demand drafts etc.
ii. Collection of funds − The banks also collect funds on behalf of their customers through bills, cheques etc.
iii. Banks collect insurance premiums, dividends, interest on debentures etc.
v. Banks assist in the process of tax payment by the account holders.
vi. Banks also play the roles of trustees or executors.
General utility functions These include:
i. Providing locker facility
ii. Underwriting of shares and debentures
iii. Purchase and sale of foreign exchange
iv. ATM, debit card and credit card facility
v. Providing information and statistical data useful to customers
APPEARS IN
संबंधित प्रश्न
Accepting deposits from the public is the................................. function of Commercial Bank.
(secondary / general / primary / incidental)
The ratio of total deposits that a commercial bank has to keep with Reserve Bank of India is
called:( choose the correct alternative)
(a) Statutory liquidity ratio
(b) Deposit ratio
(c) Cash reserve ratio
(d) Legal reserve ratio
Explain the agency function of commercial banks.
Fill in the blank using proper alternatives given in the bracket:
............................... is a primary function of commercial bank.
State whether the following statement is true or false.
The Cash Reserve Ratio does not affect the lending capacity of the commercial banks.
Fill in the blank using proper alternatives given in the bracket:
.................consumption cannot be zero.
Fill in the blank using proper alternatives given in the bracket:
The primary function of commercial banks is to ...................
Write short notes (Any Two)
Types of loans of commercial bank.
Define of Explain the following concept:
Recurring deposit
Match the following:
| Group A | Group B |
| 1. D-mat account | a. Current account |
| 2. Over draft facility | b. Agency function |
| 3. ATM facility | c. Share brokers |
| 4. Commercial bank | d. General function |
| 5. Credit creation | e. Recurring account |
| f. Profit making | |
| g. Central bank | |
| h. Commercial bank |
State whether the following statement is True or False.
The saving bank deposit can be opened with a small amount.
State whether the following statement is True or False.
Credit money is created by the central bank of a country.
Define explain the following concept.
Fixed deposits
Define explain the following concept.
Cash credit
Give reason or explain the following statement:
Overdraft facility is provided to current account holders.
Give reason or explain the following statement:
Saving account deposits are usually opened by salaried class.
Give reason or explain the following statement:
Rate of interest on fixed deposit is high.
Distinguish between:
Current account and saving account
Distinguish between:
Cash credit and overdraft facility
Write short note on:
E-banking facility
Write short note on:
D-mat account
Write short note on:
Long term loans
Answer the following question:
Explain various types of deposits.
State with reason whether you agree or disagree with the following statement.
Commercial banks perform many general utility services.
What are the primary functions of commercial banks?
State whether the following statement is True or False :
Loans given by banks for a period of less than five years is known as long - term loan.
State with reason whether you 'agree' or 'disagree' with the following statement.
Credit creation of commercial banks is based on primary deposits.
Explain the functions of a commercial bank.
A Commercial Bank is an institution that provides services ______.
The Functions of commercial banks are broadly classified into ______.
Bank credit refers to ______.
Define Commercial banks.
Explain the role of Commercial Banks in economic development.
State any two components of ‘Net Factor Income from Abroad’.
Which of the following points indicates that RBI is controlling the commercial banks?
What are the important features of a capitalist economy?
Which of the following points states that the open market operation helps in controlling credit creation?
What is the effect of a rise in the rate of SLR on the creation of credit?
Which of the following are the other functions of a commercial bank?
What role of RBI is known as 'lender of last resort'?
Which of the following are the agency functions of commercial banks?
M4 = ______ + Total deposits with the Post Office Saving Organization (excluding National Saving Certificate).
How Public debt imposes a burden on the economy as a whole?
High Powered Money includes ______
Consider the following statements:
- M1 is a broad concept of money.
- M2 is a narrow concept of money.
- M3 includes both M1 and lime deposit of public with the bank.
Which of the following is true with respect to the concept of supply of money?
Kalpana said that Commercial Bank is the controller of credit. Geeta said that the Central Bank is the controller of credit. Bobby said that both the commercial bank and the Central Bank are the controller of credit. Who among them is not correct?
Saving deposit in the Post office is a part of ______
In the case of Gross Domestic Capital Formation, which one will be the part of it?
M3 = ______
Which of the following statements is not true?
Explain the functions of commercial bank.
