Goyal Brothers Prakashan solutions for कमर्शियल एप्लिकेशन्स [अंग्रेजी] कक्षा १० आईसीएसई chapter 7 - Banking and Bank Transactions [Latest edition]

Which of the following is a Commercial Bank?

Concerning the functions of the Central Bank of India, which statement(s) is (are) accurate?

1. The Central Bank controls the issuance of currency and manages the country’s monetary policy.
2. The Central Bank primarily focuses on maximizing its own profits.
3. The Central Bank advises the government to impose restrictions on import and encourages export.
4. The Central Bank’s decisions have no impact on the country’s economic stability.

It carries out the country's monetary policy.

______ is the apex institution of the country's monetary and banking structure where as ______ is one of the organs of the money market.

Which of the following is/are correct statement(s)?

Statement 1: The Central Bank can influence the country's economy by adjusting the Cash Reserve Ratio (CRR).

Statement 2: Commercial banks can issue currency notes as long as they meet the reserve requirements set by the Central Bank.

A bank draft is always dishonoured if there are insufficient funds in the drawer’s account at the time of encashment.

If the central bank decides to promote economic growth by lowering the bank rate, which of the following is a likely consequence for commercial banks?

Central bank is owned by the ____ while commercial bank is owned by ______.

Assertion (A): Commercial banks primarily engage in profit-oriented activities.

Reasoning (R): Commercial banks have the authority to set monetary policies, establish reserve requirements, and conduct financial stability assessments to ensure the sound functioning of the banking system.

Which of the following is/are the function(s) of central bank?

It means signing on the back of the negotiable instrument with the objective of transferring its ownership.

The Statutory Liquidity Ratio (SLR) requires commercial banks to maintain a certain percentage of their liabilities in liquid assets, which can include government securities.

A commercial bank is considering increasing its lending to small businesses. Which of the following actions by the Central Bank would most likely constrain the bank’s ability to do so?

A recurring deposit account allows the account holder to withdraw the entire deposited amount along with interest at any time before the maturity period.

An open cheque is safer than a crossed cheque because it can be cashed by anyone.

A country is facing economic instability, and the central bank decides to implement strict credit control measures. Which combination of actions is the central bank most likely to take to stabilize the economy?

When considering the functions of commercial banks, which statement(s) is (are) correct?

1. Commercial banks provide loans and advances to individuals and businesses.
2. Commercial banks are solely responsible for issuing currency.
3. Commercial banks have no involvement in government transactions.
4. Commercial banks play a crucial role in the money creation process through lending.

Assertion (A): One of the primary functions of a central bank is to act as the lender of last resort.

Reasoning (R): Central banks can influence interest rates through their monetary policy decisions, which include changes in the policy rate or reserve requirements.

Central bank regulates credit through ______.

______ are the main types of bank accounts.

A bank offers the following options to its customers:

1. Fixed Deposit Account: 7% interest, withdrawal only after maturity.
2. Savings Account: 4% interest, withdrawal anytime.
3. Recurring Deposit Account: 6% interest, regular monthly deposits.

Which account type should a customer choose if they need to withdraw money regularly and also want to maximize interest?

An ______ is a cheque which is payable across the counter of the bank.

In this account, the account holder is required to deposit a specific amount every month. After the expiry of the specified period, the depositor gets back his money together with interest thereon.

Which of the following options is/are correct statement(s)?

Statement 1: The Reserve Bank of India (RBI) acts as the banker’s bank and manages the country’s monetary policy.

Statement 2: The Industrial Finance Corporation of India (IFCI) is responsible for controlling the country’s monetary policy.

______ is a Banker’s Bank.

In this type of account, no cheque book is issued to the account holder:

A bank is a ______ which collects money from the public in the form of deposits and lends the same to the borrowers.

ATM means ______.

The ______ is an extract or copy of the customer’s account in the bank’s ledger as on a particular date.

Central bank is the sole ______ of the country’s foreign currency reserve.

______ is not a legal tender and the creditor may refuse to accept it.

Identify an example of Nationalized Bank ______.

Private Banks are the banks which are ______.

Time Deposit account is also known as ______.

Assertion (A): Central Bank and Commercial Banks have distinct roles in economy.

Reasoning (R): Central Bank controls money supply and sets policy. Commercial Banks take deposits and make loans to customers.

The central bank settles the claims of commercial banks is called ______.

Which account holder gets Overdraft facility?

Public Banks are the banks which are ______.

India’s foreign exchange reserves climbed to a record of $651.5 billion by the end of last week demonstrating resilience despite uncertain geopolitics.

With reference to the above, name the institution that is authorised to monitor such reserves in our country.

With reference to Savings Deposit Account, which statement is correct?

Which of these is not a function of Central bank?

Commercial banks act as trustees and executors for their customers. This is a/an ______ function of Commercial bank.

A demand draft is preferable to a cheque. Justify either for or against.

Explain in brief moral suasion as a tool of credit control.

What do you mean by Industrial Banks?

What are the two main functions of a commercial bank?

How does the Central Bank control credit through SLR?

What are current accounts?

What are the advantages of ’Account Payee‘ crossing of a cheque?

What are open market operations of a Central Bank?

Distinguish between:

Fixed Deposit Account and Recurring Deposite Account.

What is meant by Discounting of a Bill of Exchange?

Distinguish between:

cash credit and loan.

What is a Recurring Deposit Account?

What is the term used for a cheque that can be encashed across the counter of the bank?

"A cheque is an inconvenient method of making payments". Justify for or against.

List/Mention any two/three circumstances under which a bank can refuse payment or dishonour a cheque.

Explain Bank Rate Policy as a tool of Credit Control.

“A crossed cheque is a safer mode of payment as compared to an open. cheque.” Justify.

How do exchange banks help in financing foreign trade?

Distinguish between saving account and current account.

What does a pay-in-slip contain?

Why was EXIM Bank set up in India?

Write any two differences between:

Central Bank and Commercial Bank

With the help of an example, explain the clearing house functions of RBI.

“Banking is a relationship-oriented industry.” Give two reasons either for or against.

State one point of difference between Cash Credit and Overdraft.

State one point of difference between Cash Credit and Overdraft.

"The central bank is the lender of the last resort." Explain.

Distinguish between:

Fixed Deposit Account and Recurring Deposite Account.

What is a bank draft?

Write about any three general utility functions of Commercial Bank.

State one difference between cheque and bank draft.

“Bank draft cannot get dishonomed.” Justify for or against.

Commercial Banks are the lender of the last resort.

List any two functions of the central bank.

An account holder of a Bank maintains a Passbook. Write any two features of it.

Write a short note on informative advertising.

Write a short note on an automated teller machine.

What is meant by the central bank of a country?

Explain in brief four methods usually adopted by the central bank to control credit in the country.

What is a commercial bank?

Explain main functions of commercial bank.

What is a Central Bank?

Bring out the importance of a central bank by making special reference to the functions it performs.

Explain in brief four methods usually adopted by the central bank to control credit in the country.

What are the different types of deposit accounts that can be opened in a commercial bank? Briefly explain them.

Differentiate between Savings Deposit and Current Deposit.

Distinguish between:

Fixed Deposit Account and Recurring Deposite Account.

Explain the different types of accounts in which a bank may receive deposits.

Explain the different types of schemes through which a bank may receive time deposits.

With the help of an example, explain the clearing house functions of RBI.

Show the importance of “banker’s clearing house” in modern banking.

Distinguish between the Central Bank and the Commercial Bank.

Describe the procedure to be followed to open a bank account.

Differentiate between current deposit account and fixed deposit account.

How does the central bank use the SLR to exercise credit control in a country?

How does the central bank use the credit rationing to exercise credit control in a country?

Write a short note on the importance of a cheque.

Write a short note on the primary functions of commercial banks.

Explain Cash Reserve Ratio.

Explain Statutory Liquidity Ratio.

Distinguish between a cheque and bill of exchange.

Describe the procedure to be followed to open a bank account.

Explain any five functions of the Reserve Bank of India.

List any two functions of the central bank.

Explain any two lending money functions of commercial banks.

What is a Recurring Deposit Account?

Explain briefly the five agency functions of a commercial bank.

State two advantages of a bank account.

Describe the advantages of opening a bank account.

With reference to the secondary functions of a Commercial Bank, explain the general utility function.

What are the advantages of payment by cheque?

Distinguish between the following:
Cheque & Bank Overdraft

State one difference between cheque and bank draft.

Give two agency functions of commercial banks.

Study the image. Explain any five conditions for the refusal of the same by the bank.

What do you mean by Industrial Banks?

Mention any two agency functions/services of a commercial bank.

What is a savings deposit?

What is a current account?

How is discounting of a bill of exchange a form of bank lending?

Justify the following sentence for or against and give a reason:

A bank cannot refuse payment of a cheque.

“The central bank is a banker’s bank.” Explain.

What is a bank draft?

Why is a bank draft a safe mode of money transfer?

Distinguish between:

cash credit and loan.

State one point of difference between Cash Credit and Overdraft.

Distinguish between.

Cheque book and Passbook

Give two differences between stale cheque and post-dated cheque.

Explain any two lending money functions of commercial banks.

Study the picture below and explain any two of its functions.