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प्रश्न
Answer the following question:
What are the different types of loans provided by commercial banks?
उत्तर
The following are the different types of loans and advances made by the commercial banks.
1. Loans: Loans can be of the following types:
a. Call loans: These are the loans granted by the commercial banks for a very short period of time, say about 5-7 days. The interest charged is the lowest in these kinds of loans. These are usually taken by stock brokers.
b. Short term loans: These are the loans provided for a period of not more than 2 years of time. Interest rate is higher than on the call loans but lower than the ones on medium term loans.
c. Medium term loans: These are the loans provided for a period of 2-5 years. The interest rate on these is higher than the ones on short term loans but not higher than those on the long term loans.
d. Long term loans: These are the loans provided for a period of more than 5 years. The interest rates on these are the highest of all the other loans.
2. Cash credit: In the system of cash credit, the banks first estimate the value of the assets held by the borrower. Based on this estimation, a credit limit is then decided by the bank for the borrower. The credit limit decided by the bank is the upper limit for the borrowings by the borrower. However, the actual utilization of credit by the borrower depends on his/her withdrawing power. The borrower is liable to pay interest only on the withdrawn portion of the credit.
3. Overdraft: Overdraft is a facility provided by commercial banks to the current account holders. Under this facility, commercial banks allow their customers to withdraw the amount from banks in excess of their account balance. The bank specifies the maximum limit of overdraft. A rate of interest is charged on the amount overdrawn.
4. Discounting of bills: 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 them. The banks purchase these bills produced by the customers after deducting interest on the face-value of the bill.
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संबंधित प्रश्न
Explain the primary functions of commercial banks.
Providing safe deposit vault facility is the only general function of commercial banks.
Explain the components of Legal reserve Ratio.
Explain the various types of deposits.
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.
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.
The Cash Reserve Ratio does not affect the lending capacity of the commercial banks.
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 ...................
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.
Write explanatory note.
Primary functions of commercial bank.
Write answers in ‘one’ or ‘two’ paras each.
What are the primary functions of commercial banks?
Explain the following concepts or give definitions.
Savings deposits
State whether the following statements are True or False with reason:
Interest rate is more for fixed deposits.
Fill in the blank with appropriate alternatives given below
Deposits from __________ account can be withdrawn without any notice.
Fill in the blank with appropriate alternatives given below
__________ is a primary function of commercial banks.
Fill in the blank with appropriate alternatives given below
Facility of E-banking is provided through __________
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:
Commercial banks provide agency functions to earn profits.
Give reason or explain the following statement:
Rate of interest on fixed deposit is high.
Distinguish between:
Current account and saving account
Write short note on:
Derivative deposit
Answer the following question:
Explain various types of deposits.
State with reason whether you agree or disagree with the following statement.
Commercial banks perform many general utility services.
What are the primary 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.
Answer the following question.
Explain the money creation function of commercial banks.
A Commercial Bank is an institution that provides services ______.
The Functions of commercial banks are broadly classified into ______.
Credit creation means.
Define Commercial banks.
What is credit creation?
CRR is ______
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 other functions of a commercial bank?
Which of the following are the agency functions of commercial banks?
Demand deposits include ______
High Powered Money includes ______
If the total deposits created by commercial banks is 10,000 crores and legal reserve requirements are 10%, the number of initial deposits will be ______
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).
Commercial Bank was facing a financial crisis due to the crisis of non-performing assets. It went to the RBI for help. What role will RBI play in such a case?
Railways is an example of:
Which of the following statements is not true?
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?
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
