Advertisements
Advertisements
Question
Define explain the following concept.
Discounting of bills
Solution
Discounting of bills: The commercial banks provide financial assistance to the business community by discounting bills of exchange. A bill of exchange is a document that acknowledges the amount of money that is owed by the debtors as against the goods and services received by them. The banks purchase these bills produced by the customers after deducting interest on the face-value of the bill.
APPEARS IN
RELATED QUESTIONS
Providing safe deposit vault facility is the only general function of commercial banks.
Explain, with reason, whether you Agree or Disagree with the following statement.
Commercial banks provide many general utility services.
Explain the process of money creation by the commercial banks with the help of a numerical example.
State whether the following statement is true or false :
Credit control is the function of commercial banks.
Distinguish between the following :
Quantitative and Qualitative measures of credit control.
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.
Fill in the blank using proper alternatives given in the bracket:
The primary function of commercial banks is to ...................
Write short Answer for the following question:
Explain various types of Bank Deposits ?
State whether the following statement is True or False with reason:
Commercial Banks cannot give interest on deposits.
Write explanatory note.
Primary functions of commercial bank.
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.
Explain the following concepts or give definitions.
Savings deposits
Define or Explain the concept
Current deposit
State whether the following statements are True or False with reason:
Interest rate is more for fixed deposits.
Answer with reasons whether you agree or disagree with the following statement:
The commercial banks perform many useful works for the people.
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Deposits from __________ account can be withdrawn without any notice.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
__________ is a primary function of commercial banks.
Fill in the blank with appropriate alternatives given below
Every loan creates a __________.
Fill in the blank with appropriate alternatives given below
Facility of E-banking is provided through __________
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.
Define explain the following concept.
Cash credit
Give reason or explain the following statement:
Commercial banks provide agency functions to earn profits.
Write short note on:
E-banking facility
Answer the following question:
What are the different types of loans provided by commercial banks?
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.
Answer in detail:
What are the secondary functions of commercial banks?
State whether the following statement is True or False :
Loans given by banks for a period of less than five years is known as long - term loan.
Answer the following question.
Explain the money creation function of commercial banks.
Explain the functions of a commercial bank.
Credit creation means.
What is credit creation?
Write the mechanism of credit creation by commercial banks.
State any two components of ‘Net Factor Income from Abroad’.
CRR is ______
What is the effect of a rise in the rate of SLR on the creation of credit?
What role of RBI is known as 'lender of last resort'?
Which of the following are the agency functions of commercial banks?
If reserve ratio is 10% and primary deposit is ₹1,250 crores, the total deposit created by commercial banks will be ______
High Powered Money includes ______
The word 'net' implies that ______ is to be included in the money supply.
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).
Saving deposit in the Post office is a part of ______
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 ______
M3 = ______
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
