Advertisements
Advertisements
प्रश्न
Why are commercial banks called producers (creators) of money? Explain.
उत्तर
Commercial banks add to the total money supply of the country. They create money on the basis of creation of demand deposits. Thus, by expanding demand deposits, they contribute to the country's supply of money. It is due to this reason, commercial banks are called producers (creators) of money.
संबंधित प्रश्न
Explain two methods adopted by Commercial banks to advance loans to the general public.
State the differences between a loan and an overdraft.
Explain any four advantages of a bank account.
Distinguish between:
cash credit and loan.
Differentiate between current deposit account and fixed deposit account.
A ______ is meant for day to day transactions.
What are saving bank accounts?
Explain three ways by which commercial banks advance loans to the public.
What are time (or fixed) deposits?
What are current deposits?
