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प्रश्न
Assertion (A): Central Bank provides loans to the commercial bank in the situation of financial distress.
Reasoning (R): Central Bank can order the government to help the bank facing the financial crisis.
पर्याय
A is true but R is false.
A is false but R is true.
Both A and R are true and R explains A.
Both A and R are true but R does not explain A.
उत्तर
A is true but R is false.
Explanation:
When commercial banks have a financial crisis, the central bank serves as a lender of last resort, providing loans. However, the central bank cannot direct the government to assist the bank.
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संबंधित प्रश्न
State two advantages of a bank account.
What are Commercial banks?
______ is a revolving credit arrangement.
Write about any three general utility functions of Commercial Bank.
With reference to the secondary functions of a Commercial Bank, explain the general utility function.
Distinguish between:
cash credit and loan.
The advantage of having a bank account is that it ______.
From which type of deposits, money can be withdrawn only after the maturity date?
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Commercial Banks keep only a fraction of deposits as Cash Reserves and use the remaining deposits for given loans, etc.
Reason (R): All the depositors of Commercial Banks do not approach the banks for withdrawal of money at the [iame time and also they do not withdraw the entire amount in one go.
Give two advantages of depositing money with commercial banks.
