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प्रश्न
What is creation of credit?
संक्षेप में उत्तर
उत्तर
Creation of credit refers to the process by which commercial banks generate new loans and thereby create new deposits in the banking system. This process expands the total money supply within an economy.
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Commercial Banks: Functions
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संबंधित प्रश्न
Mention two differences between fixed deposits and demand deposits.
Name one commercial bank in India.
What are current accounts?
______ is a revolving credit arrangement.
Match the following:
| 1 | Savings account | P | For a fixed time period |
| 2 | Current account | Q | Deposited at an equal time period |
| 3 | Recurring account | R | No interest is paid |
| 4 | Fixed deposit | S | Nominal restriction in no. of withdrawals |
Explain any four advantages of a bank account.
What is meant by Discounting of a Bill of Exchange?
A ______ is meant for day to day transactions.
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.
Explain clearly three methods adopted by Commercial Banks to borrow money from the public.
