Money and Banking-Commercial Banking System (CBSE Class-12 Economics): Questions 1 - 9 of 9

Get 1 year subscription: Access detailed explanations (illustrated with images and videos) to 523 questions. Access all new questions we will add tracking exam-pattern and syllabus changes. View Sample Explanation or View Features.

Rs. 900.00 or

Question number: 1

» Money and Banking » Commercial Banking System

Short Answer Question▾

Write in Short

Name any three types of deposit accounts of commercial banks and also state one of their distinguishing features.

Question number: 2

» Money and Banking » Commercial Banking System

Appeared in Year: 2010

Essay Question▾

Describe in Detail

How do changes in bank rate affect money creation by Commercial Banks? Explain

Explanation

  • Following is the way how changes in bank rate affect money creation by Commercial Banks:
  • Increase in the bank rate by the central bank increases cost of borrowing for the commercial banks. This increase in the lending rate reduces the borrowing capacity of the general public. This lowers the multiplier… (68 more words) …

Question number: 3

» Money and Banking » Commercial Banking System

Essay Question▾

Describe in Detail

Give four agency functions of commercial banks.

Explanation

Agency services are those services which are rendered by commercial banks as agents of their customers. They include:

a) Collection and payment of cheques and bills on behalf of the customers;

b) Collection of dividends, interest and rent, etc. on behalf of customers, if so instructed by them;

c) Purchase… (53 more words) …

Question number: 4

» Money and Banking » Commercial Banking System

Essay Question▾

Describe in Detail

Explain the lending function of commercial banks.

Explanation

Lending function of commercial bank means they act as financial intermediaries and accept deposits from more money than they want to spend and lend it with more money and they have at hand.

It means money from lenders to borrowers.

Lenders - > Banks - > Borrowers

Function of Commercial… (10 more words) …

Question number: 5

» Money and Banking » Commercial Banking System

Essay Question▾

Describe in Detail

Explain the acceptance of deposits function of commercial banks.

Explanation

A bank is accepting deposits from the public. People can deposit their money of following accounts:

(1) Fixed or Time deposit account: - Cash is deposited in his account for limited time. This is not payable on demand.

(2) Current or demand deposit Account: - In this depositor can deposit… (29 more words) …

Question number: 6

» Money and Banking » Commercial Banking System

Short Answer Question▾

Write in Short

Give the meaning of demand deposits of commercial banks.

Question number: 7

» Money and Banking » Commercial Banking System

Essay Question▾

Describe in Detail

Explain the lending functions of commercial banks

Explanation

Functions of commercial banks are as follows:

Primary function: -

(1) Accepting Deposits: Commercial bank accepts various types of deposits from public especially from its clients. It includes saving account deposits, recurring account deposits, fixed deposits, etc. These deposits are payable after a certain time period.

(2) Making Advances: The… (141 more words) …

Question number: 8

» Money and Banking » Commercial Banking System

Short Answer Question▾

Write in Short

What is Commercial Bank?

Question number: 9

» Money and Banking » Commercial Banking System

Essay Question▾

Describe in Detail

Explain the ‘acceptance of deposits’ function of commercial banks.

Explanation

The most important function of commercial banks is to accept deposits from the public. Various sections of society and their needs and economic condition, deposit their savings with the banks.

The acceptance of deposits

The Acceptance of Deposits

This image is of acceptance of deposits

In that if savings are less than investment then… (156 more words) …

Sign In