Advertisements
Advertisements
प्रश्न
Which of the following is a function of a commercial bank? Give a reason to support your answer:
पर्याय
Acting as a lender of the last resort.
Deciding what is legal tender.
Determining monetary policy.
Provide cash credit facility.
उत्तर
Provide cash credit facility.
Reason:
A commercial bank is responsible for providing cash credit facilities. Commercial banks provide cash credit as part of their lending services, allowing firms to withdraw funds as needed up to a predetermined credit limit. This helps to meet short-term cash needs or working capital requirements.
APPEARS IN
संबंधित प्रश्न
Briefly explain how Cash Reserve Ratio can be used to control credit.
Name one commercial bank in India.
Commercial banks accept deposits, lend money and provide other services.
Commercial Banks are the lender of the last resort.
Differentiate between Savings Deposit and Current Deposit.
Write short notes on the primary functions of commercial banks.
A commercial bank accepts deposits from the people for the purposes of giving loans and making investments.
The current account holders are not given interest on their deposits. The reason being:
Mention two necessary conditions for a financial institution to become a commercial bank.
Why are commercial banks called producers (creators) of money? Explain.
