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प्रश्न
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Commercial Banks keep only a fraction of deposits as Cash Reserves and use the remaining deposits for given loans, etc.
Reason (R): All the depositors of Commercial Banks do not approach the banks for withdrawal of money at the [iame time and also they do not withdraw the entire amount in one go.
पर्याय
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true but Reason (R) is false.
Assertion (A) is false but Reason (R) is true.
उत्तर
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
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संबंधित प्रश्न
Explain briefly the five agency functions of a commercial bank.
What are Commercial banks?
What are term/time deposits?
What are current accounts?
______ deposits earn very low rate of interest on it.
A depositor is allowed to withdraw more money than what is there in his account:
- What is the facility called?
- In which type of account is it permitted?
Assertion (A): Central Bank provides loans to the commercial bank in the situation of financial distress.
Reasoning (R): Central Bank can order the government to help the bank facing the financial crisis.
Explain any two Lending Money functions of Commercial Banks.
Distinguish between:
cash credit and loan.
Explain the term bank overdraft.
