English

State Whether the Following Statements Are True Or False with Reason: Interest Rate is More for Fixed Deposits. - Economics

Advertisements
Advertisements

Question

State whether the following statements are True or False with reason: 

 Interest rate is more for fixed deposits. 

Solution

True, interest rate is more for fixed deposits.
Explanation:
Fixed deposits are the ones where money can be withdrawn only after a certain specified time from the commercial banks. The interest rate on such deposits are high.

shaalaa.com
  Is there an error in this question or solution?
2009-2010 (March)

APPEARS IN

RELATED QUESTIONS

Providing safe deposit vault facility is the only general function of commercial banks.


Explain the components of Legal reserve Ratio.


The ratio of total deposits that a commercial bank has to keep with Reserve Bank of India is
called:( choose the correct alternative)

(a) Statutory liquidity ratio

(b) Deposit ratio

(c) Cash reserve ratio

(d) Legal reserve ratio


 A bank is an institution which deals in money and _____________

(commodity money/credit/barter/standard money)


Explain the various types of deposits.


Explain the process of money creation by the commercial banks with the help of a numerical example.


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 with reason. Whether you ‘agree’ or ‘disagree’ with the following statement: 

Commercial bank can credit on the basis of primary deposit.


Give reason or explain the following statement:

Rate of interest on fixed deposit is high.


Write short note on :

Credit Creation.


Fill in the blank using proper alternatives given in the bracket:

The primary function of commercial banks is to ...................


 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?  

 


Define or Explain the concept

Current deposit


Distinguish between:

Central Bank and Commercial Bank


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.

The saving bank deposit can be opened with a small amount. 


Define explain the following concept.

Safe deposit vault 


Give reason or explain the following statement:

Overdraft facility is provided to current account holders.


Give reason or explain the following statement:

Rate of interest on fixed deposit is high. 


Write short note on:

D-mat account 


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. 

A commercial bank create credit on the basis of primary deposit. 


What are the primary functions of commercial banks? 


Answer in detail:
Explain the process of credit creation. 


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.


State with reason whether you 'agree' or 'disagree' with the following statement.

Credit creation of commercial banks is based on primary deposits.


Explain the functions of a commercial bank.


Explain the role of Commercial Banks in economic development.


CRR is ______ 


What are the important features of a capitalist economy? 


The process of money creation or credit creation is done by ______


Which of the following are the functions of a commercial bank? 


Which of the following are the other functions of a commercial bank?


M3 and M4 are known as ______ money.


If reserve ratio is 10% and primary deposit is ₹1,250 crores, the total deposit created by commercial banks will be ______


Demand deposits include ______


High Powered Money includes ______


The word 'net' implies that ______ is to be included in the money supply.


If the total deposits created by commercial banks is 10,000 crores and legal reserve requirements are 10%, the number of initial deposits will be ______


Saving deposit in the Post office is a part of ______


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

Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×