Advertisements
Advertisements
Question
What are current deposits?
Solution
Current account deposits are operated by businessmen and others who have to do regular business transactions.
APPEARS IN
RELATED QUESTIONS
Explain two methods adopted by Commercial banks to advance loans to the general public.
A depositor is allowed to withdraw more money than what is there in his account:
- What is the facility called?
- In which type of account is it permitted?
Assertion (A): Central Bank provides loans to the commercial bank in the situation of financial distress.
Reasoning (R): Central Bank can order the government to help the bank facing the financial crisis.
Commercial banks accept deposits, lend money and provide other services.
What is meant by Discounting of a Bill of Exchange?
Commercial Banks are the lender of the last resort.
Demand deposits include ______ and _______.
Which of the following is not the function of commercial bank?
From which type of deposits, money can be withdrawn only after the maturity date?
Identify the correct sequence of alternatives given in Column II by matching them with respective terms in Column I.
| Column I | Column II | ||
| A. | Function of Commercial bank | (i) | Initial deposits × `1/"LRR"` |
| B. | Money multiplier | (ii) | The difference between market value of the security and the amount of loan. |
| C. | Total money creation | (iii) | Acceptance of deposits |
| D. | Margin requirement | (iv) | `1/"LRR"` |
