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प्रश्न
Write answers in ‘one’ or ‘two’ paras each.
What are the primary functions of commercial banks?
उत्तर
The following are some of the functions performed by commercial banks:
i. Acceptance of Deposits- Accepting deposits from the general public is the basic function of a commercial bank. There are various kinds of public deposits such as fixed account deposit, savings account deposit and current account deposits through which the commercial banks deposit the money from the public.
ii. Discounting Bills of Exchange- The commercial banks provide financial assistance to the business community by discounting bills of exchange. A bill of exchange is a document that acknowledges the amount of money that is owed by the debtors as against the goods and services received by him. The banks purchase these bills produced by the customers (after deducting interest on the face-value of the bill). In this sense, by purchasing the bills they provide easy means of finance to the business community as and when required.
iii. Credit Creation- The commercial banks create credit in the economy through demand deposits. Credit creation paves the path for the growth of the economy.
iv. Investment of Funds- Apart from granting loans and advances, the banks also invest their surplus funds in securities. Investment in the securities helps the commercial banks to meet their future requirement of funds. The banks can borrow from the RBI against such securities. Also, if required the banks can sell their securities in the open market to meet their requirement of funds.
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संबंधित प्रश्न
Explain different types of loans and advances provided by commercial banks.
Providing safe deposit vault facility is the only general function of commercial banks.
Explain the components of Legal reserve Ratio.
Explain the agency function of commercial banks.
Explain, with reason, whether you Agree or Disagree with the following statement.
Commercial banks provide many general utility services.
How do commercial banks create deposits? Explain.
Fill in the blank using proper alternatives given in the bracket:
............................... is a primary function of commercial bank.
State whether the following statement is true or false :
Credit control is the function of commercial banks.
Distinguish between the following :
Quantitative and Qualitative measures of credit control.
Explain with reason, whether you agree or disagree with the following statement:
Commercial banks perform agency functions to earn profit.
Fill in the blank using proper alternatives given in the bracket:
.................consumption cannot be zero.
Write short Answer for the following question:
Explain various types of Bank Deposits ?
State whether the following statement is True or False with reason:
Commercial Banks cannot give interest on deposits.
Define of Explain the following concept:
Recurring deposit
Give reasons or explain the following statement:
Every loan creates a deposit.
Answer with reasons whether you agree or disagree with the following statement:
The commercial banks perform many useful works for the people.
Distinguish between:
Central Bank and Commercial Bank
Fill in the blank with appropriate alternatives given below
Deposits from __________ account can be withdrawn without any notice.
Match the following:
| Group A | Group B |
| 1. D-mat account | a. Current account |
| 2. Over draft facility | b. Agency function |
| 3. ATM facility | c. Share brokers |
| 4. Commercial bank | d. General function |
| 5. Credit creation | e. Recurring account |
| f. Profit making | |
| g. Central bank | |
| h. Commercial bank |
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.
There is no difference between primary deposit and secondary deposit of a commercial bank.
Define explain the following concept.
Safe deposit vault
Define explain the following concept.
Discounting of bills
Give reason or explain the following statement:
Commercial banks provide agency functions to earn profits.
Give reason or explain the following statement:
Overdraft facility is provided to current account holders.
Give reason or explain the following statement:
Rate of interest on fixed deposit is high.
Distinguish between:
Call loans and long term loans
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.
A commercial bank create credit on the basis of primary deposit.
What are the primary functions of commercial banks?
Answer in detail:
Explain the process of credit creation.
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.
Answer the following question.
Explain the money creation function of commercial banks.
The Functions of commercial banks are broadly classified into ______.
Bank credit refers to ______.
Credit creation means.
Define Commercial banks.
What is credit creation?
Write the mechanism of credit creation by commercial banks.
What are the important features of a capitalist economy?
The process of money creation or credit creation is done by ______
Which of the following points states that the open market operation helps in controlling credit creation?
Which of the following are the agency functions of commercial banks?
M4 = ______ + Total deposits with the Post Office Saving Organization (excluding National Saving Certificate).
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?
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?
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).
Which of the following statements is not true?
