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प्रश्न
Write short note on:
Derivative deposit
उत्तर
Derivative deposits also known as secondary deposits are the deposits in excess of the minimum cash reserves to be held by the banks. These deposits are used to grant loans to the borrowers. In this way, derivative deposits form the basis of credit creation by the commercial banks.
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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.
The ratio of total deposits that a commercial bank has to keep with Reserve Bank of India is
called:( choose the correct alternative)
(a) Statutory liquidity ratio
(b) Deposit ratio
(c) Cash reserve ratio
(d) 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.
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.
Answer the following question :
What are the different types of loans provided by commercial banks ?
Write short note on :
Credit Creation.
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 statements are TRUE or FALSE:
Commercial banks play an important role in economic development.
Define of Explain the following concept:
Recurring deposit
Explain the following concepts or give definitions.
Savings deposits
Define or Explain the concept
Current deposit
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.
Credit money is created by the central bank of a country.
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.
Cash credit
Define explain the following concept.
Safe deposit vault
Give reason or explain the following statement:
Overdraft facility is provided to current account holders.
Distinguish between:
Call loans and long term loans
Distinguish between:
Current account and saving account
Write short note on:
E-banking facility
Write short note on:
D-mat account
State with reason whether you agree or disagree with the following statement.
Commercial banks perform many general utility services.
Answer in detail:
What are the secondary functions of commercial banks?
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.
Define Commercial banks.
Write the mechanism of credit creation by commercial banks.
State any two components of ‘Net Factor Income from Abroad’.
Which of the following points indicates that RBI is controlling the commercial banks?
The process of money creation or credit creation is done by ______
What is the effect of a rise in the rate of SLR on the creation of credit?
______ is the total liability of the monetary authority of the country.
M3 and M4 are known as ______ money.
M4 = ______ + Total deposits with the Post Office Saving Organization (excluding National Saving Certificate).
Demand deposits include ______
In the case of Gross Domestic Capital Formation, which one will be the part of it?
Read the following hypothetical case study carefully and answer the questions follow on the basis of the same.
Agricultural Developmental Bank of Pakistan uses the production function approach for measuring bank outputs and costs. A translog cost function is estimated to provide an assessment of the bank's scale and scope efficiency, and to quantify the extent to which its production costs are sensitive to the size and output mix. Results show that the bank enjoys both overall and product-specific economies of scale and, therefore, there exists scope for the bank to expand its operations at a declining average cost. Even though bank branches in all size categories enjoy economies of scale, the extent of such economies is larger for branches operating at a smaller scale of production. This implies that as the bank branches grow larger in size in terms of both loan and deposit accounts, they move closer to attaining increasing returns to a factor. It is also shown that the marginal costs of servicing both loan and deposit accounts decline as bank branches grow larger in size in terms of either the number of loans or the number of deposits. This confirms that branches operating at a larger scale of production have attained greater cost-efficiency in terms of servicing the loan and deposit accounts.
The increasing returns to scale in larger branches is due to ______
Railways is an example of:
M3 = ______
Which of the following statements is not true?
The Narrow concept of money includes ______
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.
Ms. lqra Ansari, a teacher, was explaining in her class about various types of deposits with the commercial banks. She quoted that - "These deposits form a part of M1 measure of money supply and are payable on demand by the commercial banks."
Identify the type of deposits she was explaining about and choose the correct alternative:
- Demand Deposits
- Time Deposits
- Post Office Deposits
