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प्रश्न
What is credit creation?
उत्तर
Credit Creation means the multiplication of loans and advances. Commercial banks receive deposits from the public and use these deposits to give loans. However, loans offered are many times more than the deposits received by banks. This function of banks is known as ‘Credit Creation’.
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संबंधित प्रश्न
A bank is an institution which deals in money and _____________
(commodity money/credit/barter/standard money)
Write short notes (Any Two)
Types of loans of commercial bank.
State whether the following statements are True or False with reason:
Interest rate is more for fixed deposits.
Give reason or explain the following statement:
Commercial banks provide agency functions to earn profits.
State with reason whether you agree or disagree with the following statement.
A commercial bank create credit on the basis of primary deposit.
Answer in detail:
Explain the process of credit creation.
State with reason whether you 'agree' or 'disagree' with the following statement.
Credit creation of commercial banks is based on primary deposits.
Explain the functions of a commercial bank.
Write the mechanism of credit creation by commercial banks.
Explain the role of Commercial Banks in economic development.
Which of the following points indicates that RBI is controlling the commercial banks?
Which of the following points states that the open market operation helps in controlling credit creation?
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?
M4 = ______ + Total deposits with the Post Office Saving Organization (excluding National Saving Certificate).
The word 'net' implies that ______ is to be included in the money supply.
Kalpana said that Commercial Bank is the controller of credit. Geeta said that the Central Bank is the controller of credit. Bobby said that both the commercial bank and the Central Bank are the controller of credit. Who among them is not correct?
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 |
Explain the functions of commercial bank.
