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प्रश्न
State whether the following statement is True or False.
Credit money is created by the central bank of a country.
विकल्प
True
False
उत्तर
Credit money is created by the central bank of a country. – False
Explanation: The above statement is false. Credit is created by the commercial banks of a country. People deposit their money with the commercial banks. A portion of these deposits (after keeping the reserves) is then further lent out to the general public as loans. The money spent by the borrowers again come back to the bank in the form of deposits (if it is assumed that all transactions are routed through banks). The banks again keep a portion of the deposits with them and lent the rest and so on. In this way the commercial banks create credit. Note that as central bank does not accepts deposits and lends to the general public, it cannot create credit.
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संबंधित प्रश्न
Explain the primary functions of commercial banks.
A bank is an institution which deals in money and _____________
(commodity money/credit/barter/standard money)
Explain the agency function of commercial banks.
Explain the various types of deposits.
Explain the process of money creation by the commercial banks with the help of a numerical example.
State whether the following statement is true or false:
Central bank also performs commercial banking business.
Distinguish between the following :
Quantitative and Qualitative measures of credit control.
State whether the following statement is true or false.
The Cash Reserve Ratio does not affect the lending capacity of the commercial banks.
Give reason or explain the following statement:
Rate of interest on fixed deposit is high.
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.
Fill in the blank with appropriate alternatives given in the bracket :
Commercial banks create __________.
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.
Distinguish between:
Central Bank and Commercial Bank
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.
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.
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.
Distinguish between:
Call loans and long term loans
Distinguish between:
Current account and saving account
Distinguish between:
Cash credit and overdraft facility
Write short note on:
D-mat account
Write short note on:
Long term loans
Answer the following question:
Explain various types of deposits.
What are the primary functions of commercial banks?
Answer in detail:
What are the secondary functions of commercial banks?
State whether the following statement is True or False :
Loans given by banks for a period of less than five years is known as long - term loan.
Explain the functions of a commercial bank.
A Commercial Bank is an institution that provides services ______.
The Functions of commercial banks are broadly classified into ______.
Credit creation means.
Define Commercial banks.
Explain the role of Commercial Banks in economic development.
Which of the following points indicates that RBI is controlling the commercial banks?
______ is the total liability of the monetary authority of the country.
Which of the following are the functions of a commercial bank?
What role of RBI is known as 'lender of last resort'?
M3 and M4 are known as ______ money.
How Public debt imposes a burden on the economy as a whole?
Demand deposits include ______
High Powered Money includes ______
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 present COVID-19 situation, many economists have raised their concerns that the Indian economy may have to face a deflationary situation due to reduced economic activities in the country. Suppose you are a member of the high-powered committee constituted by the Reserve Bank of India (RBl). You have suggested that as the supervisor of commercial banks, ______ (restriction/release) of the money supply be ensured by the Reserve Bank of India (RBI).
Saving deposit in the Post office is a part of ______
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?
_________ is an institution that accept deposits for lending purposes.
Explain the functions of commercial bank.
