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Chapters
1: Factors of Production
Theory of Demand and Supply
2: Elementary Theory of Demand
3: Elasticity of Demand
4: Theory of Supply
Market
5: Meaning and Types of Markets
Banking in India
6: Meaning and Functions of Money
▶ 7: Commercial Banks
8: Central Bank
9: Introduction to Public Finance
10: Public Revenue
11: Public Expenditure
12: Public Debt
Inflation
13: Inflation
Consumer Awareness
14: Consumer Awareness
![Goyal Brothers Prakashan solutions for Economics [English] Class 10 ICSE chapter 7 - Commercial Banks - Shaalaa.com](/images/economics-english-class-10-icse_6:ca738c8e53b2465d96b5253bb7b17d70.jpg "Goyal Brothers Prakashan solutions for Economics [English] Class 10 ICSE chapter 7 - Commercial Banks")
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Solutions for Chapter 7: Commercial Banks
Below listed, you can find solutions for Chapter 7 of CISCE Goyal Brothers Prakashan for Economics [English] Class 10 ICSE.
Goyal Brothers Prakashan solutions for Economics [English] Class 10 ICSE 7 Commercial Banks Exercise [Pages 144 - 146]
MULTIPLE CHOICE QUESTIONS
The advantage of having a bank account is that it ______.
it develops saving habits
it keep your money safe
it becomes easier to pay bills
All the above
A ______ is meant for day to day transactions.
Current account
Saving account
Fixed deposit account
Recurring deposit account
Identify which of the following Statement is true?
Primary deposits and initial deposits are the same thing.
Secondary deposits and derivative deposits mean the same thing.
Both Primary deposits and initial deposits are the same thing and Secondary deposits and derivative deposits mean the same thing.
Neither Primary deposits and initial deposits are the same thing nor Secondary deposits and derivative deposits mean the same thing.
Demand deposits include ______ and _______.
Term deposits, saving account deposits
Saving account deposits, current account deposits
Current account deposits, term deposits
None of these
Deposits made by the people from their own resources are called ______.
Primary deposits
Secondary deposits
Time deposits
None of these
Which is the primary function of Commercial Banks?
Accepting deposits
Advancing of loans
Both accepting deposits and advancing of loans
None of these
Which of the following is not the function of commercial bank?
Accepting deposits
Advancing of loans
Credit
Issue of currency
If legal reserve ratio is 20%, the value of money multiplier would be ______.
2
3
5
4
What is true about the commercial banks?
Commercial banks operate under the control of central bank.
Commercial banks deal with the public.
Commercial bank create credit.
All of these
The ratio of total deposits that a commercial bank has to keep with Reserve Bank of India is called ______.
Statutory liquidity ratio
Deposit ratio
Cash reserve ratio
Legal reserve ratio
Credit money is increased when CRR:
Falls
Rises
Both falls and rises
None of the above
Suppose in an economy, the initial deposit of ₹ 400 crores lead to the creation of total deposits worth ₹ 4000 crore. Then the value of reserve requirements would be ______.
0.01
1
0.1
0.21
The deposits in the bank accounts that can be withdrawn any time without notice are called ______.
Demand deposits
Primary deposits
Term deposits
None of these
From ______ the deposited amount of money can be withdrawn only after the maturity date.
Term deposit account
Same deposit account
Current account deposits
None of these
Which one of the following is the appropriate meaning of collateral?
It is the sum total of money borrowed from banks.
The amount borrowed from friends.
It is an asset of the borrower used as guarantee to a lender.
The amount invested in a business.
It is the amount of money borrowed from banks.
Which one of the following is a major reason that prevents the poor from getting loans from the banks?
Lack of capital
Not affordable due to high rate of interest
Absence of collateral security
Absence of mediators
Cash deposited by customers in commercial banks are known as ______.
Saving deposit
Derivative deposit
Secondary deposit
Total deposit
Short Answer Type Questions.
What do you understand by commercial banks?
Mention two necessary conditions for a financial institution to become a commercial bank.
Mention primary functions of commercial banks.
State two advantages of a bank account.
Explain the following term/concept:
Overdraft
Define the following term:
Money at call
Distinguish between:
Current Account and Fixed Deposit Account
Explain two methods of accepting deposits by the commercial banks.
Give two differences between recurring deposits and fixed deposits.
What are saving bank accounts?
Compare the rate of interest given to such an account to that of a Current Account and a Fixed Deposit.
Mention two differences between fixed deposits and demand deposits.
Give two advantages of depositing money with commercial banks.
Explain three ways by which commercial banks advance loans to the public.
How do commercial banks invest their surplus funds?
Give two agency functions of commercial banks.
What is meant by credit creation?
Distinguish between primary deposits and secondary (derivative) deposits.
What is an overdraft facility?
Explain the meaning of saving deposits.
Long Answer Type Questions
State two advantages of a bank account.
Explain three important functions of a commercial bank.
What do you understand by commercial banks?
Explain clearly three methods adopted by Commercial Banks to borrow money from the public.
Explain three ways by which commercial banks advance loans to the public.
Explain how the commercial bank provides a credit facility through the measures given below.
Cash credit
Explain how the commercial bank provides a credit facility through the measures given below.
Discounting bills of exchange
Explain the credit creation role of commercial banks with the help of a numerical example.
Give two agency functions of commercial banks.
Goyal Brothers Prakashan solutions for Economics [English] Class 10 ICSE 7 Commercial Banks QUESTION BANK [Pages 146 - 148]
What do you understand by commercial banks?
Mention two necessary conditions for a financial institution to become a commercial bank.
State two advantages of a bank account.
Mention two differences between fixed deposits and demand deposits.
What is an overdraft facility?
Give two differences between recurring deposits and fixed deposits.
What is money at call?
What are demand deposits?
What are time (or fixed) deposits?
Give two advantages of depositing money with commercial banks.
What is meant by primary deposits?
What are secondary (derivative) deposits?
What is meant by credit creation?
How do commercial banks invest their surplus funds?
What is money multiplier?
How money multiplier is related to Legal Reserve Ratio?
What do you understand by commercial banks?
Explain clearly three methods adopted by Commercial Banks to borrow money from the public.
Explain three ways by which commercial banks advance loans to the public.
What are the primary functions of commercial banks?
Give two agency functions of commercial banks.
Compare the rate of interest given to such an account to that of a Current Account and a Fixed Deposit.
Why are the banks required to keep only a fraction of deposits as cash reserves?
Explain the credit creation role of commercial banks with the help of a numerical example.
Explain three important functions of a commercial bank.
Why are commercial banks called producers (creators) of money? Explain.
What is the difference between a loan and an overdraft?
What does the term 'nationalisation of banks' mean?
Explain three main features of a current bank account.
What are saving bank accounts?
Explain the features of savings bank account.
Solutions for 7: Commercial Banks
Goyal Brothers Prakashan solutions for Economics [English] Class 10 ICSE chapter 7 - Commercial Banks
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Concepts covered in Economics [English] Class 10 ICSE chapter 7 Commercial Banks are Concept of Credit Creation, Meaning of Commercial Banks, Importance of Banks, Functions of Commercial Banks, Primary Functions, Agency Functions, General Utility Functions, Nationalisation of Banks.
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