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प्रश्न
Write short note on:
Derivative deposit
उत्तर
Derivative deposits also known as secondary deposits are the deposits in excess of the minimum cash reserves to be held by the banks. These deposits are used to grant loans to the borrowers. In this way, derivative deposits form the basis of credit creation by the commercial banks.
APPEARS IN
संबंधित प्रश्न
Accepting deposits from the public is the................................. function of Commercial Bank.
(secondary / general / primary / incidental)
Explain the primary functions of commercial banks.
Explain different types of loans and advances provided by commercial banks.
Providing safe deposit vault facility is the only general function of commercial banks.
Explain the components of Legal reserve Ratio.
Explain the process of credit creation by commercial banks.
A bank is an institution which deals in money and _____________
(commodity money/credit/barter/standard money)
Explain, with reason, whether you Agree or Disagree with the following statement.
Commercial banks provide many general utility services.
How do commercial banks create deposits? Explain.
Explain the process of money creation by the commercial banks with the help of a numerical example.
Give reason or explain the following statement:
Rate of interest on fixed deposit is high.
Fill in the blank using proper alternatives given in the bracket:
The primary function of commercial banks is to ...................
Write short notes (Any Two)
Types of loans of commercial bank.
State whether the following statement is True or False with reason:
Commercial Banks cannot give interest on deposits.
Fill in the blank with appropriate alternatives given in the bracket :
Commercial banks create __________.
State whether the following statements are TRUE or FALSE:
Commercial banks play an important role in economic development.
Write answers in ‘one’ or ‘two’ paras each.
What are the primary functions of commercial banks?
Write explanatory notes or answer the following.
Explain the primary functions of Commercial bank.
Fill in the blank with appropriate alternatives given below
Deposits from __________ account can be withdrawn without any notice.
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.
Cash credit
Define explain the following concept.
Safe deposit vault
Give reason or explain the following statement:
Saving account deposits are usually opened by salaried class.
Distinguish between:
Cash credit and overdraft facility
Write short note on:
Long term loans
Answer the following question:
Explain various types of deposits.
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?
Explain the functions of a commercial bank.
The Functions of commercial banks are broadly classified into ______.
Bank credit refers to ______.
Define Commercial banks.
What is credit creation?
State any two components of ‘Net Factor Income from Abroad’.
What are the important features of a capitalist economy?
The process of money creation or credit creation is done by ______
Which of the following points states that the open market operation helps in controlling credit creation?
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?
How Public debt imposes a burden on the economy as a whole?
Demand deposits include ______
Consider the following statements:
- M1 is a broad concept of money.
- M2 is a narrow concept of money.
- M3 includes both M1 and lime deposit of public with the bank.
Which of the following is true with respect to the concept of supply of money?
Read the following hypothetical case study carefully and answer the questions follow on the basis of the same.
Agricultural Developmental Bank of Pakistan uses the production function approach for measuring bank outputs and costs. A translog cost function is estimated to provide an assessment of the bank's scale and scope efficiency, and to quantify the extent to which its production costs are sensitive to the size and output mix. Results show that the bank enjoys both overall and product-specific economies of scale and, therefore, there exists scope for the bank to expand its operations at a declining average cost. Even though bank branches in all size categories enjoy economies of scale, the extent of such economies is larger for branches operating at a smaller scale of production. This implies that as the bank branches grow larger in size in terms of both loan and deposit accounts, they move closer to attaining increasing returns to a factor. It is also shown that the marginal costs of servicing both loan and deposit accounts decline as bank branches grow larger in size in terms of either the number of loans or the number of deposits. This confirms that branches operating at a larger scale of production have attained greater cost-efficiency in terms of servicing the loan and deposit accounts.
The increasing returns to scale in larger branches is due to ______
Commercial Bank was facing a financial crisis due to the crisis of non-performing assets. It went to the RBI for help. What role will RBI play in such a case?
The Narrow concept of money includes ______
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
Explain the functions of commercial bank.
