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प्रश्न
How do commercial banks invest their surplus funds?
उत्तर
Commercial banks use their excess reserves by giving loans to the borrowers and by investing in securities to earn income.
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संबंधित प्रश्न
SLR stands for ______
Which of the following does not belong to the group?
State two advantages of a bank account.
Briefly explain how Cash Reserve Ratio can be used to control credit.
______ is a revolving credit arrangement.
______ deposits earn very low rate of interest on it.
A ______ is meant for day to day transactions.
Observe the relationship of the first pair of word and complete the second pair.
The primary function of a commercial bank : Acceptance of deposit, the agency function of a commercial banks : ______.
Which of the following statements are true?
- A bank collects money from those who have surplus funds and lends this money to those who require it.
- Commercial banks do not transfer funds from one place to another.
- The principle objective of commercial banks is to earn profit.
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Commercial Banks keep only a fraction of deposits as Cash Reserves and use the remaining deposits for given loans, etc.
Reason (R): All the depositors of Commercial Banks do not approach the banks for withdrawal of money at the [iame time and also they do not withdraw the entire amount in one go.
