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Question
State whether the following statement is true or false.
The Cash Reserve Ratio does not affect the lending capacity of the commercial banks.
Solution
The Cash Reserve Ratio does not affect the lending capacity of the commercial banks. False
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RELATED QUESTIONS
Explain different types of loans and advances provided by commercial banks.
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Explain, with reason, whether you Agree or Disagree with the following statement.
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Commercial banks play an important role in economic development.
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Every loan creates a deposit.
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Explain the primary functions of Commercial bank.
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Match the following:
| Group A | Group B |
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| 3. ATM facility | c. Share brokers |
| 4. Commercial bank | d. General function |
| 5. Credit creation | e. Recurring account |
| f. Profit making | |
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Cash credit
Define explain the following concept.
Safe deposit vault
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Discounting of bills
Give reason or explain the following statement:
Commercial banks provide agency functions to earn profits.
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Saving account deposits are usually opened by salaried class.
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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.
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Explain the process of credit creation.
Answer the following question.
Explain the money creation function of commercial banks.
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What is credit creation?
Write the mechanism of credit creation by commercial banks.
CRR is ______
What are the important features of a capitalist economy?
______ is the total liability of the monetary authority of the country.
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How Public debt imposes a burden on the economy as a whole?
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Explain the functions of commercial bank.
