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प्रश्न
A bank is an institution which deals in money and _____________
(commodity money/credit/barter/standard money)
उत्तर
A bank is an institution which deals in money and credit.
Explanation:
A bank is a financial institution which deals in money matters and credit. The banks perform the primary functions of accepting deposits and through these, create credit by advancing loans. Thus, they not only deal in money matters such as depositing money but also create credit in the country.
APPEARS IN
संबंधित प्रश्न
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 process of credit creation by commercial banks.
Explain the agency function of commercial banks.
How do commercial banks create deposits? Explain.
Explain the process of money creation by the commercial banks with the help of a numerical example.
Fill in the blank using proper alternatives given in the bracket:
............................... is a primary function of commercial bank.
Answer the following question :
What are the different types of loans provided by commercial banks ?
State whether the following statement is true or false.
The Cash Reserve Ratio does not affect the lending capacity of the commercial banks.
Write short note on :
Credit Creation.
Fill in the blank using proper alternatives given in the bracket:
.................consumption cannot be zero.
Fill in the blank using proper alternatives given in the bracket:
The primary function of commercial banks is to ...................
State whether the following statement is True or False with reason:
Commercial Banks cannot give interest on 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
Write answers in ‘one’ or ‘two’ paras each.
What are the primary functions of commercial banks?
Define or Explain the concept
Current deposit
Answer with reasons whether you agree or disagree with the following statement:
The commercial banks perform many useful works for the people.
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.
The saving bank deposit can be opened with a small amount.
State whether the following statement is True or False.
There is no difference between primary deposit and secondary deposit of a commercial bank.
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.
Distinguish between:
Cash credit and overdraft facility
Answer the following question:
Explain various types of deposits.
What are the primary functions of commercial banks?
Answer in detail:
What are the secondary functions of commercial banks?
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.
Explain the functions of a commercial bank.
Credit creation means.
Write the mechanism of credit creation by commercial banks.
CRR is ______
Which of the following points indicates that RBI is controlling the commercial banks?
The process of money creation or credit creation is done by ______
______ is the total liability of the monetary authority of the country.
Which of the following are the agency functions of commercial banks?
The word 'net' implies that ______ is to be included in the money supply.
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?
Saving deposit in the Post office is a part of ______
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 ______
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 |
Railways is an example of:
The Narrow concept of money includes ______
_________ 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
Explain the functions of commercial bank.
