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प्रश्न
Give reason or explain the following statement:
Commercial banks provide agency functions to earn profits.
उत्तर
Commercial banks provide agency functions to earn profits.
Explanation: Commercial banks provide several agency functions to their customers besides the major functions of acceptance of deposits and granting of loans. These functions may include:
1) Easy and cheap flow of funds from one place to another via mail transfers, demand drafts etc.
2) Collection and payment of funds on behalf of their customers through bills, cheques etc.
3) Purchase and sale of securities and foreign exchange.
4) Providing the facility of underwriting the sale of new shares.
These services are provided by the bank in return for some fee. Hence, the bank earns profits through these services.
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संबंधित प्रश्न
Explain the primary functions of commercial banks.
Explain the agency function of commercial banks.
Explain the various types of deposits.
How do commercial banks create deposits? Explain.
Explain with reason, whether you agree or disagree with the following statement:
Commercial banks perform agency functions to earn profit.
Write explanatory note.
Primary functions of commercial bank.
Fill in the blank with appropriate alternatives given in the bracket :
Commercial banks create __________.
State whether the following statements are TRUE or FALSE:
Commercial banks play an important role in economic development.
State whether the following statements are True or False with reasons :
The interest is more on savings deposits.
Distinguish between:
Central Bank and Commercial Bank
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Deposits from __________ account can be withdrawn without any notice.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
Every loan creates a __________.
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.
Define explain the following concept.
Safe deposit vault
Write short note on:
D-mat account
Answer the following question:
What are the different types of loans provided by 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.
State with reason whether you 'agree' or 'disagree' with the following statement.
Credit creation of commercial banks is based on primary deposits.
A Commercial Bank is an institution that provides services ______.
The Functions of commercial banks are broadly classified into ______.
Bank credit refers to ______.
CRR is ______
What are the important features of a capitalist economy?
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?
Which of the following are the other functions of a commercial bank?
What role of RBI is known as 'lender of last resort'?
Which of the following are the agency functions of commercial banks?
M4 = ______ + Total deposits with the Post Office Saving Organization (excluding National Saving Certificate).
If reserve ratio is 10% and primary deposit is ₹1,250 crores, the total deposit created by commercial banks will be ______
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?
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:
M3 = ______
Which of the following statements is not true?
The Narrow concept of money includes ______
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?
_________ 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
