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Question
State whether the following statements are TRUE or FALSE:
Commercial banks play an important role in economic development.
Solution
True, commercial banks play an important role in economic development.
Explanation:
By channelizing the surplus money from the public to loan seekers, the commercial banks create credit in the economy. Credit creation paves the path for the growth of the economy. Also, commercial banks play an important role in controlling money supply in the economy. Thus, commercial banks play an essential role in economic development.
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RELATED QUESTIONS
Accepting deposits from the public is the................................. function of Commercial Bank.
(secondary / general / primary / incidental)
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............................... is a primary function of commercial bank.
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Credit control is the function of commercial banks.
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.................consumption cannot be zero.
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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 __________.
Give reasons or explain the following statement:
Every loan creates a deposit.
Explain the following concepts or give definitions.
Savings deposits
Answer with reasons whether you agree or disagree with the following statement:
The commercial banks perform many useful works for the people.
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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 __________
State whether the following statement is True or False.
Commercial banks are the backbone of modern economy.
State whether the following statement is True or False.
The saving bank deposit can be opened with a small amount.
State whether the following statement is True or False.
There is no difference between primary deposit and secondary deposit of a commercial bank.
Define explain the following concept.
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Define explain the following concept.
Safe deposit vault
Give reason or explain the following statement:
Saving account deposits are usually opened by salaried class.
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Derivative deposit
Write short note on:
E-banking facility
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D-mat account
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.
A Commercial Bank is an institution that provides services ______.
Bank credit refers to ______.
What are the important features of a capitalist economy?
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 other functions of a commercial bank?
Which of the following are the agency functions of commercial banks?
M3 and M4 are known as ______ money.
The word 'net' implies that ______ is to be included in the money supply.
Kalpana said that Commercial Bank is the controller of credit. Geeta said that the Central Bank is the controller of credit. Bobby said that both the commercial bank and the Central Bank are the controller of credit. Who among them is not correct?
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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.
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| 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 |
M3 = ______
Explain the functions of commercial bank.
