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प्रश्न
Distinguish between:
Cash credit and overdraft facility
उत्तर
| Bases | Cash credit | Overdraft facility |
| Definition | A loan taken in the form of cash by anyone from the bank against some securities is called cash credit. | Commercial banks allow their customers to withdraw an amount from the bank in excess of their balance. |
| Drawers | Anyone can take a cash loan from banks against some securities. | Only current account holders can avail this facility. |
| Interest rate charged | They charge higher rates of interest against a cash loan. | They charge minimal rates of interest against an overdraft. |
APPEARS IN
संबंधित प्रश्न
Explain different types of loans and advances provided by commercial banks.
Providing safe deposit vault facility is the only general function of commercial banks.
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 agency function of commercial banks.
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 ?
Give reason or explain the following statement:
Rate of interest on fixed deposit is high.
Write short note on :
Credit Creation.
Write short notes (Any Two)
Types of loans of commercial bank.
Write explanatory note.
Primary functions of commercial bank.
State whether the following statements are TRUE or FALSE:
Commercial banks play an important role in economic development.
Give reasons or explain the following statement:
Every loan creates a deposit.
Explain the following concepts or give definitions.
Savings deposits
State whether the following statements are True or False with reasons :
The interest is more on savings deposits.
Write explanatory notes or answer the following.
Explain the primary functions of Commercial bank.
State whether the following statements are True or False with reason:
Interest rate is more for fixed deposits.
Distinguish between:
Central Bank and Commercial Bank
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.
The saving bank deposit can be opened with a small amount.
Define explain the following concept.
Fixed deposits
Define explain the following concept.
Safe deposit vault
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.
A commercial bank create credit on the basis of primary deposit.
State with reason whether you agree or disagree with the following statement.
Commercial banks perform many general utility services.
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.
Define 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 ______
Which of the following points states that the open market operation helps in controlling credit creation?
What is the effect of a rise in the rate of SLR on the creation of credit?
______ is the total liability of the monetary authority of the country.
Demand deposits include ______
High Powered Money includes ______
The word 'net' implies that ______ is to be included in the money supply.
Kalpana said that Commercial Bank is the controller of credit. Geeta said that the Central Bank is the controller of credit. Bobby said that both the commercial bank and the Central Bank are the controller of credit. Who among them is not correct?
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 ______
Railways is an example of:
Which of the following statements is not true?
_________ 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
