Structure of Money Market in India > Organized Sector

Identify & explain the concept from the given illustration.

AVM bank provides d-mat facility, internet banking, and mobile banking facilities to its customers.

State with reason whether you agree or disagree with the following statement:

Commercial banks create credit.

PASSAGE

Post-liberalization, public sector banks have diversified into non- traditional activities such as mutual funds, merchant banking, venture capital funding etc. There is also growth in parabanking activities such as leasing, hire-purchase and factoring services.

Merchant banking includes issue management, project counselling, working capital financing, foreign currency loans, portfolio management etc.

Retail banking offers financial services to individuals for personal consumption such as housing loans, loans for purchase of consumer durables, auto loans, educational loans, credit cards etc.

Banks have been permitted to enter into the life insurance business.

1. Identify the areas of diversification undertaken by public sector banks post-liberalization (1 mark)
2. Mention the financial services offered under retail banking. (1mark)
3. Give your personal opinion based on the above passage. (2 marks)

Explain the structure of organized sector of money market in India

State with reason whether you agree or disagree with the following statement:

Issue of currency notes is the only function of Reserve Bank of India.

______ : Commercial bank :: Credit control : Central bank

Complete the correlation:

______ : Central bank :: SBI : Commercial Bank

Deposits that are repayable after a certain period of time –