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प्रश्न
Explain the agency function of commercial banks.
उत्तर
The commercial banks perform various agency functions with the primary purpose of acceptance of deposits and granting of loans. Their functions include:
- Transfer of funds- The banks provide an easy flow of funds from place to place via mail transfers, demand drafts etc.
- Collection of funds- The banks also collect funds on behalf of their customers through bills, cheques etc.
- Collection- Banks also collect insurance premiums, dividends, interest on debentures etc.
- Assistance- Banks assist in the process of tax payment by the account holders.
- Role of trustee- Commercial banks also play the roles of trustees or executors.
APPEARS IN
संबंधित प्रश्न
Accepting deposits from the public is the................................. function of Commercial Bank.
(secondary / general / primary / incidental)
Explain the primary functions of commercial banks.
Explain the components of Legal reserve Ratio.
Explain the various types of deposits.
Explain, with reason, whether you Agree or Disagree with the following statement.
Commercial banks provide many general utility services.
Fill in the blank using proper alternatives given in the bracket:
............................... is a primary function of commercial bank.
Distinguish between the following :
Quantitative and Qualitative measures of credit control.
Answer the following question :
What are the different types of loans provided by commercial banks ?
State with reason. Whether you ‘agree’ or ‘disagree’ with the following statement:
Commercial bank can credit on the basis of primary deposit.
Write short note on :
Credit Creation.
Fill in the blank using proper alternatives given in the bracket:
The primary function of commercial banks is to ...................
Write explanatory note.
Primary functions of commercial bank.
Write answers in ‘one’ or ‘two’ paras each.
What are the primary functions of commercial banks?
Write explanatory notes or answer the following.
Explain the primary functions of Commercial bank.
Define or Explain the concept
Current deposit
State whether the following statements are True or False with reason:
Interest rate is more for fixed deposits.
Fill in the blank with appropriate alternatives given below
Deposits from __________ account can be withdrawn without any notice.
Fill in the blank with appropriate alternatives given below
__________ is a primary function of commercial banks.
Fill in the blank with appropriate alternatives given below
Facility of E-banking is provided through __________
State whether the following statement is True or False.
Commercial banks are the backbone of modern economy.
State whether the following statement is True or False.
Credit money is created by the central bank of a country.
State whether the following statement is True or False.
There is no difference between primary deposit and secondary deposit of a commercial bank.
Define explain the following concept.
Fixed deposits
Define explain the following concept.
Cash credit
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:
Call loans and long term loans
Write short note on:
D-mat account
Answer the following question:
Explain various types of deposits.
State with reason whether you agree or disagree with the following statement.
A commercial bank create credit on the basis of primary deposit.
State with reason whether you 'agree' or 'disagree' with the following statement.
Credit creation of commercial banks is based on primary deposits.
Bank credit refers to ______.
What is credit creation?
Write the mechanism of credit creation by commercial banks.
What is the effect of a rise in the rate of SLR on the creation of credit?
Which of the following are the functions of a commercial bank?
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?
M3 and M4 are known as ______ money.
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?
Demand deposits include ______
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?
Read the following hypothetical case study carefully and answer the questions follow on the basis of the same.
Agricultural Developmental Bank of Pakistan uses the production function approach for measuring bank outputs and costs. A translog cost function is estimated to provide an assessment of the bank's scale and scope efficiency, and to quantify the extent to which its production costs are sensitive to the size and output mix. Results show that the bank enjoys both overall and product-specific economies of scale and, therefore, there exists scope for the bank to expand its operations at a declining average cost. Even though bank branches in all size categories enjoy economies of scale, the extent of such economies is larger for branches operating at a smaller scale of production. This implies that as the bank branches grow larger in size in terms of both loan and deposit accounts, they move closer to attaining increasing returns to a factor. It is also shown that the marginal costs of servicing both loan and deposit accounts decline as bank branches grow larger in size in terms of either the number of loans or the number of deposits. This confirms that branches operating at a larger scale of production have attained greater cost-efficiency in terms of servicing the loan and deposit accounts.
The increasing returns to scale in larger branches is due to ______
Commercial Bank was facing a financial crisis due to the crisis of non-performing assets. It went to the RBI for help. What role will RBI play in such a case?
Railways is an example of:
M3 = ______
Which of the following statements is not true?
It takes Rohan 30 minutes to do an economics assignment and one hour to do a finance assignment. What is the opportunity cost of you doing two economics assignments?
Ms. lqra Ansari, a teacher, was explaining in her class about various types of deposits with the commercial banks. She quoted that - "These deposits form a part of M1 measure of money supply and are payable on demand by the commercial banks."
Identify the type of deposits she was explaining about and choose the correct alternative:
- Demand Deposits
- Time Deposits
- Post Office Deposits
Explain the functions of commercial bank.
