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प्रश्न
Give reasons or explain the following statement:
Every loan creates a deposit.
उत्तर
Commercial banks accept deposits from the general public and grants loans and advances to the borrowers such as financial institutions and producers or manufacturers. These loans are then used by the producers and manufacturers for various purposes and as the loan is not invested on the spot, they deposit the money in banks. Thus, it is said that every loan creates a deposit.
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.
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 process of credit creation by commercial banks.
A bank is an institution which deals in money and _____________
(commodity money/credit/barter/standard money)
Explain, with reason, whether you Agree or Disagree with the following statement.
Commercial banks provide many general utility services.
Explain the process of money creation by the commercial banks with the help of a numerical example.
Answer the following question :
What are the different types of loans provided by commercial banks ?
State whether the following statement is true or false.
The Cash Reserve Ratio does not affect the lending capacity of the commercial banks.
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 short Answer for the following question:
Explain various types of Bank Deposits ?
Write short notes (Any Two)
Types of loans of commercial bank.
State whether the following statements are TRUE or FALSE:
Commercial banks play an important role in economic development.
Write answers in ‘one’ or ‘two’ paras each.
What are the primary functions of commercial banks?
State whether the following statements are True or False with reasons :
The interest is more on savings deposits.
Define or Explain the concept
Current deposit
Answer with reasons whether you agree or disagree with the following statement:
The commercial banks perform many useful works for the people.
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.
The saving bank deposit can be opened with a small amount.
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.
Discounting of bills
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.
Distinguish between:
Cash credit and overdraft facility
Write short note on:
Derivative deposit
Write short note on:
E-banking facility
Write short note on:
D-mat account
Answer the following question:
Explain various types of deposits.
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 banks perform many general utility services.
Answer in detail:
What are the secondary functions of commercial banks?
Answer the following question.
Explain the money creation function of commercial banks.
Explain the functions of a commercial bank.
The Functions of commercial banks are broadly classified into ______.
Credit creation means.
State any two components of ‘Net Factor Income from Abroad’.
CRR is ______
Which of the following points states that the open market operation helps in controlling credit creation?
______ is the total liability of the monetary authority of the country.
Which of the following are the functions of a commercial bank?
Which of the following are the other functions of a commercial bank?
M3 and M4 are known as ______ money.
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?
If the total deposits created by commercial banks is 10,000 crores and legal reserve requirements are 10%, the number of initial deposits will be ______
In the case of Gross Domestic Capital Formation, which one will be the part of it?
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 ______
Identify the correctly matched pair of the items in Column A to that of Column B
| Column A | Column B | ||
| 1 | Money | (a) | Supply of Money |
| 2 | Commercial Bank | (b) | Store of Value |
| 3 | Central Bank | (c) | Credit Control |
| 4 | M4 | (d) | Circulation of Money |
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?
Explain the functions of commercial bank.
