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प्रश्न
Commercial Banks are the lender of the last resort.
उत्तर
Against:
Commercial banks are not the lender of last resort; that duty is filled by the central bank. During a financial crisis, the central bank provides emergency liquidity to commercial banks, ensuring stability and preventing bank failures when no other funding sources are available.
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संबंधित प्रश्न
Discuss any five advantages of having a bank account.
How do commercial banks mobilise deposits from the public?
Briefly explain how Cash Reserve Ratio can be used to control credit.
What are Commercial banks?
Explain any four advantages of a bank account.
Explain the term bank overdraft.
What is creation of credit?
From which type of deposits, money can be withdrawn only after the maturity date?
Identify the correct sequence of alternatives given in Column II by matching them with respective terms in Column I.
| Column I | Column II | ||
| A. | Function of Commercial bank | (i) | Initial deposits × `1/"LRR"` |
| B. | Money multiplier | (ii) | The difference between market value of the security and the amount of loan. |
| C. | Total money creation | (iii) | Acceptance of deposits |
| D. | Margin requirement | (iv) | `1/"LRR"` |
Mention primary functions of commercial banks.
