Advertisements
Advertisements
प्रश्न
Answer the following question.
Explain discounting bills of exchange as one of the functions of the banks.
उत्तर
Discounting of Bills of Exchange:
Another important form of bank lending is through discounting or purchasing the bills of exchange. A bill of exchange is drawn by a creditor on the debtor specifying the amount of debt and also the date when it becomes payable. Such bills of exchange are normally issued for a period of 90 days. Thus, creditors cannot get it encashed from the debtors before the maturity period. However, if the creditor needs money before the maturity period (i.e., 90 days), he can get it discounted from the commercial bank. The bank makes payment to the creditor after deducting its commission. When the bill matures, the bank will get payment from the debtors.
APPEARS IN
संबंधित प्रश्न
Cash can be withdrawn from ATM at any time.
Current Account Saving Account
Function of Commercial Bank? Only Primary Function?
Distinguish between the following:
Savings account & Fixed account
Distinguish between the following:
Loan & Overdraft
Distinguish between the following:
Commercial bank & Central bank
Write Short Note on the following:
Primary functions of commercial banks
Write Short Note on the following:
Agency functions of commercial banks
Write Short Note on the following:
Utility functions of commercial banks
Answer the following question in short:
State the primary functions of banks.
The secondary function of commercial banks?
Read the passage given below and answer the questions that follow.
|
The Monetary Policy Committee (MPC) increased the repo rate, at which the RBI lends short-term funds to commercial banks, from 6.25 percent to 6.50 percent. This increase in the repo rate is based on the increase in the key rate by 250 bps. The Committee also decided to continue the withdrawal of money supply in the economy. |
- Which function of the central bank is hinted at in the passage given above? (1)
- In which situation does central bank adopt the measure given in the above passage? (1)
- Explain any two monetary measures that can be used to accomplish a similar objective, other than the one given in the above passage. (4)
- Differentiate between Reserve Bank of India and Commercial banks by giving any two points. (2)
