Question

In the context of the Commercial Banks, which of the following statements are correct?

1. Deposits received are liabilities for Commercial Banks.
2. They are creator of credit in the economy.
3. They accept deposits from the general public.
4. They accept deposits on behalf of the Reserve Bank of India.

पर्याय

• (I), (II) and (III)

• (II) and (III)

• (I) and (II)

• (I) and (IV)

Answer 1

(I), (II) and (III)

Explanation:

1. Deposits are liabilities for commercial banks because they owe this money to customers.
2. Banks create credit by lending more than their actual deposits, increasing the money supply.
3. Commercial banks accept deposits from the general public.
4. Banks do not accept deposits on behalf of the RBI; they operate independently.