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Commercial Banks
Commercial bank creates credit
By discounting of bills
By advancing loans
By investment
All of the above
Discounting of Bills: Provides immediate funds to bill holders, increasing the money supply. Advancing Loans: Increases the money supply by creating new deposits when loans are disbursed. Investment: Infuses funds into the economy by purchasing securities, thereby creating credit. Each of these activities contributes to the overall creation of credit in the financial system, which in turn supports economic growth and development.
Author:
rikazzz
Comment
Commercial Banks
Which bank does accept the deposits from public
Central bank
Commercial bank
Foreign exchange bank
All the above
Author:
rikazzz
Comment
Commercial Banks
Which of the following is meant for presenting a summary and balance of accounts of bank customers
Balance sheet
Pass book
Prospectus
Bank statement
Author:
rikazzz
Comment
Commercial Banks
Formula for calculating total credit creation
Reserve ratio × 1/ New deposit
New deposit × reserve ratio/ 1
None of the above
New deposit × 1/reserve ratio
Author:
rikazzz
Comment
Commercial Banks
The forms of cash reserve of commercial bank
Cash in hand
Reserve with central bank
Receivables from other banks
All the above
Author:
rikazzz
Comment
Commercial Banks
Commercial bank is called
Custodian of foreign exchange
Bank of public
Banker to the government
Banker’s bank
Author:
rikazzz
Comment
Commercial Banks
Which bank does discount the bills of public
All the above
Agriculture bank
Industrial bank
Commercial bank
Author:
rikazzz
Comment
Commercial Banks
The primary function of commercial bank are
Accepting deposits
Advancing loans
None of a and b
Both a and b
Author:
rikazzz
Comment
Commercial Banks
Commercial bank can be regarded by nature as
Depository bank
Investment bank
None of the above
Central bank
Author:
rikazzz
Comment
Commercial Banks
Which type of loan is advanced by commercial banks for meeting day-to day requirements
Long term loan
Short term loan
Medium term loan
All the above
Author:
rikazzz
Comment
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