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प्रश्न
State whether the following statement is True or False.
Credit money is created by the central bank of a country.
पर्याय
True
False
उत्तर
Credit money is created by the central bank of a country. – False
Explanation: The above statement is false. Credit is created by the commercial banks of a country. People deposit their money with the commercial banks. A portion of these deposits (after keeping the reserves) is then further lent out to the general public as loans. The money spent by the borrowers again come back to the bank in the form of deposits (if it is assumed that all transactions are routed through banks). The banks again keep a portion of the deposits with them and lent the rest and so on. In this way the commercial banks create credit. Note that as central bank does not accepts deposits and lends to the general public, it cannot create credit.
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संबंधित प्रश्न
Explain the primary functions of commercial banks.
Explain different types of loans and advances provided by commercial banks.
Explain the components of Legal reserve Ratio.
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 process of credit creation by commercial banks.
Explain the agency function of commercial banks.
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.
Write short note on :
Credit Creation.
Explain with reason, whether you agree or disagree with the following statement:
Commercial banks perform agency functions to earn profit.
Write short notes (Any Two)
Types of loans 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
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
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.
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.
Discounting of bills
Give reason or explain the following statement:
Overdraft facility is provided to current account holders.
Distinguish between:
Call loans and long term loans
Distinguish between:
Current account and saving account
Write short note on:
Derivative deposit
Write short note on:
E-banking facility
Write short note on:
Long term loans
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.
What are the primary functions of commercial banks?
Answer in detail:
Explain the process of credit creation.
State with reason whether you 'agree' or 'disagree' with the following statement.
Credit creation of commercial banks is based on primary deposits.
Explain the functions of a commercial bank.
The Functions of commercial banks are broadly classified into ______.
Define Commercial banks.
What is credit creation?
Write the mechanism of credit creation by commercial banks.
Explain the role of Commercial Banks in economic development.
State any two components of ‘Net Factor Income from Abroad’.
What is the effect of a rise in the rate of SLR on the creation of credit?
Which of the following are the functions of a commercial bank?
Which of the following are the other functions of a commercial bank?
Which of the following are the agency functions of commercial banks?
M3 and M4 are known as ______ money.
How Public debt imposes a burden on the economy as a whole?
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).
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?
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
