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प्रश्न
Distinguish between fixed deposit and demand deposit. (Any two)
उत्तर
| Fixed Deposit | Demand Deposit |
| This amount can be withdrawn only after a given maturity period. | This amount can be withdrawn anytime on demand. |
| The rate of interest on this deposit remains relatively high. | The rate of interest on this deposit is relatively low. |
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संबंधित प्रश्न
Explain briefly the five agency functions of a commercial bank.
Briefly explain how Cash Reserve Ratio can be used to control credit.
Assertion (A): Central Bank provides loans to the commercial bank in the situation of financial distress.
Reasoning (R): Central Bank can order the government to help the bank facing the financial crisis.
How is discounting of a bill of exchange a form of bank lending?
The advantage of having a bank account is that it ______.
From which type of deposits, money can be withdrawn only after the maturity date?
Identify the correct sequence of alternatives given in Column II by matching them with respective terms in Column I.
| Column I | Column II | ||
| A. | Function of Commercial bank | (i) | Initial deposits × `1/"LRR"` |
| B. | Money multiplier | (ii) | The difference between market value of the security and the amount of loan. |
| C. | Total money creation | (iii) | Acceptance of deposits |
| D. | Margin requirement | (iv) | `1/"LRR"` |
Give two advantages of depositing money with commercial banks.
Which of the following is a function of a commercial bank? Give a reason to support your answer:
Explain clearly three methods adopted by Commercial Banks to borrow money from the public.
