Ans. It is that type of account where a fixed sum of money is deposited for a fixed period. Amount kept in fixed deposit can be used by common bank for long term investment. Since bank can earn higher income from fixed deposit bank also pay higher interest on Fixed deposit.
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प्रश्न
Give reason or explain the following statement:
Rate of interest on fixed deposit is high.
उत्तर
Rate of interest on fixed deposit is high.
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संबंधित प्रश्न
Accepting deposits from the public is the................................. function of Commercial Bank.
(secondary / general / primary / incidental)
Providing safe deposit vault facility is the only general function of commercial banks.
Explain the process of credit creation by commercial banks.
Explain the agency function of commercial banks.
Every loan creates a ___________
[loss/ profit / deposit/ credit]
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.
Fill in the blank using proper alternatives given in the bracket:
............................... is a primary function of commercial bank.
State with reason. Whether you ‘agree’ or ‘disagree’ with the following statement:
Commercial bank can credit on the basis of primary deposit.
State whether the following statement is true or false.
The Cash Reserve Ratio does not affect the lending capacity of the commercial banks.
Explain with reason, whether you agree or disagree with the following statement:
Commercial banks perform agency functions to earn profit.
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 ...................
Fill in the blank with appropriate alternatives given in the bracket :
Commercial banks create __________.
Define of Explain the following concept:
Recurring deposit
Write answers in ‘one’ or ‘two’ paras each.
What are the primary functions of commercial banks?
Write explanatory notes or answer the following.
Explain the primary functions of Commercial bank.
Define or Explain the concept
Current deposit
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
Fill in the blank with appropriate alternatives given below
Every loan creates a __________.
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.
The saving bank deposit can be opened with a small amount.
Define explain the following concept.
Discounting of bills
Give reason or explain the following statement:
Saving account deposits are usually opened by salaried class.
Distinguish between:
Call loans and long term loans
Distinguish between:
Cash credit and overdraft facility
State with reason whether you agree or disagree with the following statement.
A commercial bank create credit on the basis of primary deposit.
Explain the functions of a commercial bank.
Credit creation means.
Write the mechanism of credit creation by commercial banks.
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?
Which of the following are the functions of a commercial bank?
Which of the following are the other functions of a commercial bank?
M3 and M4 are known as ______ money.
M4 = ______ + Total deposits with the Post Office Saving Organization (excluding National Saving Certificate).
Demand deposits include ______
High Powered Money includes ______
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?
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).
Saving deposit in the Post office is a part of ______
Read the following hypothetical case study carefully and answer the questions follow on the basis of the same.
Agricultural Developmental Bank of Pakistan uses the production function approach for measuring bank outputs and costs. A translog cost function is estimated to provide an assessment of the bank's scale and scope efficiency, and to quantify the extent to which its production costs are sensitive to the size and output mix. Results show that the bank enjoys both overall and product-specific economies of scale and, therefore, there exists scope for the bank to expand its operations at a declining average cost. Even though bank branches in all size categories enjoy economies of scale, the extent of such economies is larger for branches operating at a smaller scale of production. This implies that as the bank branches grow larger in size in terms of both loan and deposit accounts, they move closer to attaining increasing returns to a factor. It is also shown that the marginal costs of servicing both loan and deposit accounts decline as bank branches grow larger in size in terms of either the number of loans or the number of deposits. This confirms that branches operating at a larger scale of production have attained greater cost-efficiency in terms of servicing the loan and deposit accounts.
The increasing returns to scale in larger branches is due to ______
M3 = ______
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
