Ans. It is that type of account where a fixed sum of money is deposited for a fixed period. Amount kept in fixed deposit can be used by common bank for long term investment. Since bank can earn higher income from fixed deposit bank also pay higher interest on Fixed deposit.
Advertisements
Advertisements
Question
Give reason or explain the following statement:
Rate of interest on fixed deposit is high.
Solution
Rate of interest on fixed deposit is high.
shaalaa.com
Is there an error in this question or solution?
APPEARS IN
RELATED QUESTIONS
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.
Explain the components of Legal reserve Ratio.
Explain the process of credit creation by commercial banks.
Explain the agency function of commercial banks.
How do commercial banks create deposits? Explain.
Fill in the blank using proper alternatives given in the bracket:
............................... is a primary function of commercial bank.
Distinguish between the following :
Quantitative and Qualitative measures of credit control.
State whether the following statement is true or false.
The Cash Reserve Ratio does not affect the lending capacity of the commercial banks.
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 explanatory note.
Primary functions of commercial bank.
State whether the following statements are TRUE or FALSE:
Commercial banks play an important role in economic development.
Define of Explain the following concept:
Recurring deposit
Give reasons or explain the following statement:
Every loan creates a deposit.
Write answers in ‘one’ or ‘two’ paras each.
What are the primary functions of commercial banks?
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
__________ is a primary function of commercial banks.
State whether the following statement is True or False.
Credit money is created by the central bank of a country.
State whether the following statement is True or False.
There is no difference between primary deposit and secondary deposit of a commercial bank.
Distinguish between:
Call loans and long term loans
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.
Answer in detail:
Explain the process of credit creation.
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.
The Functions of commercial banks are broadly classified into ______.
Define Commercial banks.
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’.
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?
Which of the following are the functions of a commercial bank?
What role of RBI is known as 'lender of last resort'?
How Public debt imposes a burden on the economy as a whole?
If reserve ratio is 10% and primary deposit is ₹1,250 crores, the total deposit created by commercial banks will be ______
Demand deposits include ______
The word 'net' implies that ______ is to be included in the money supply.
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?
Saving deposit in the Post office is a part of ______
In the case of Gross Domestic Capital Formation, which one will be the part of it?
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?
Identify the correctly matched pair of the items in Column A to that of Column B
| Column A | Column B | ||
| 1 | Money | (a) | Supply of Money |
| 2 | Commercial Bank | (b) | Store of Value |
| 3 | Central Bank | (c) | Credit Control |
| 4 | M4 | (d) | Circulation of Money |
Railways is an example of:
M3 = ______
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?
_________ is an institution that accept deposits for lending purposes.
