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Chapters
1: Factors of Production
Unit II - Theory of Demand and Supply
2: Elementary Theory of Demand
3: Elasticity of Demand
4: Theory of Supply
Unit III - Market
5: Meaning and Types of Markets
Unit IV - Banking in India
6: Meaning and Functions of Money
▶ 7: Commercial Banks
8: Central Bank
9: Introduction to Public Finance
10: Public Revenue
11: Public Expenditure
12: Public Debt
Unit V - Inflation
13: Inflation
Unit VI - Consumer Awareness
14: Consumer Awareness
![Goyal Brothers Prakashan solutions for इकॉनॉमिक्स [अंग्रेजी] कक्षा १० आईसीएसई chapter 7 - Commercial Banks - Shaalaa.com](/images/economics-english-class-10-icse_6:79542639410243508fde8e322c338fd1.jpg "Goyal Brothers Prakashan solutions for इकॉनॉमिक्स [अंग्रेजी] कक्षा १० आईसीएसई chapter 7 - Commercial Banks")
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Solutions for Chapter 7: Commercial Banks
Below listed, you can find solutions for Chapter 7 of CISCE Goyal Brothers Prakashan for इकॉनॉमिक्स [अंग्रेजी] कक्षा १० आईसीएसई.
Goyal Brothers Prakashan solutions for इकॉनॉमिक्स [अंग्रेजी] कक्षा १० आईसीएसई 7 Commercial Banks Exercise [Pages 170 - 173]
MULTIPLE CHOICE QUESTIONS
The advantage of having a bank account is that it ______.
it develops saving habits
it keep your money safe
it becomes easier to pay bills
All the above
A ______ is meant for day to day transactions.
Current account
Saving account
Fixed deposit account
Recurring deposit account
Identify which of the following Statement is true?
Primary deposits and initial deposits are the same thing.
Secondary deposits and derivative deposits mean the same thing.
Both Primary deposits and initial deposits are the same thing and Secondary deposits and derivative deposits mean the same thing.
Neither Primary deposits and initial deposits are the same thing nor Secondary deposits and derivative deposits mean the same thing.
Demand deposits include ______ and _______.
Term deposits, saving account deposits
Saving account deposits, current account deposits
Current account deposits, term deposits
None of these
Deposits made by the people from their own resources are called ______.
Primary deposits
Secondary deposits
Time deposits
None of these
Which is the primary function of Commercial Banks?
Accepting deposits
Advancing of loans
Both accepting deposits and advancing of loans
None of these
Which of the following is not the function of commercial bank?
Accepting deposits
Advancing of loans
Credit
Issue of currency
If legal reserve ratio is 20%, the value of money multiplier would be ______.
2
3
5
4
What is true about the commercial banks?
Commercial banks operate under the control of central bank.
Commercial banks deal with the public.
Commercial bank create credit.
All of these
The ratio of total deposits that a commercial bank has to keep with Reserve Bank of India is called ______.
Statutory liquidity ratio
Deposit ratio
Cash reserve ratio
Legal reserve ratio
Credit money is increased when CRR:
Falls
Rises
Both falls and rises
None of the above
Suppose in an economy, the initial deposit of ₹ 400 crores lead to the creation of total deposits worth ₹ 4000 crore. Then the value of reserve requirements would be ______.
0.01
1
0.1
0.21
The deposits in the bank accounts that can be withdrawn any time without notice are called ______.
Demand deposits
Primary deposits
Term deposits
None of these
From ______ the deposited amount of money can be withdrawn only after the maturity date.
Term deposit account
Same deposit account
Current account deposits
None of these
Which one of the following is the appropriate meaning of collateral?
It is the sum total of money borrowed from banks.
The amount borrowed from friends.
It is an asset of the borrower used as guarantee to a lender.
The amount invested in a business.
It is the amount of money borrowed from banks.
Which one of the following is a major reason that prevents the poor from getting loans from the banks?
Lack of capital
Not affordable due to high rate of interest
Absence of collateral security
Absence of mediators
Cash deposited by customers in commercial banks are known as ______.
Saving deposit
Derivative deposit
Secondary deposit
Total deposit
Identify the incorrect statement about fixed deposits.
They are also called as time deposits.
The deposits are made in equal intervals.
They earn high rate of interest.
There is no cheque facility provided.
ASSERTION-REASONING & STATEMENT BASED QUESTIONS Read the following statements-Assertion(A) and Reason(R). Choose one of the correct alternatives given below:
Assertion (A): Demand deposits are repayable by banks on demand.
Reason (R): Commercial banks pay interest on the demand deposits.
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true but Reason (R) is false.
Assertion (A) is false but Reason (R) is true.
Assertion (A): An overdraft is a facility that allows the customer to overdraw from the amount of his current account.
Reason (R): An overdraft facility is given to respectable and reliable customers for a short period.
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true but Reason (R) is false.
Assertion (A) is false but Reason (R) is true.
Read the following statements carefully and choose one of the correct alternatives given below:
Statement (1): Fixed deposits carry high rates of interest.
Statement (2): Saving account can be operated only upto a specified fixed period of time.
Both statements are true.
Both statements are false.
Statement 1 is true but Statement 2 is false.
Statement 2 is true but Statement 1 is false.
Read the following statements-Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Commercial banks are profit based financial institutions.
Reason (R): Commercial banks accept deposits to make loans and advances at higher interest rates than they pay to the depositors.
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true but Reason (R) is false.
Assertion (A) is false but Reason (R) is true.
Read the following statements carefully and choose one of the correct alternatives given below:
Statement (1): The process of credit creation is directly related to the size of money multiplier.
Statement (2): If legal reserve ratio is 20%, the value of money multiplier will be 10.
Both statements are true.
Both statements are false.
Statement 1 is true but Statement 2 is false.
Statement 2 is true but Statement 1 is false.
Statement (1): Primary deposits are the initial deposits made by the depositors in the bank.
Statement (2): Secondary deposits take place in all types of account except fixed deposit account.
Both statements are true.
Both statements are false.
Statement 1 is true but Statement 2 is false.
Statement 2 is true but Statement 1 is false.
Short Answer Type Questions.
What do you understand by commercial banks?
Mention two necessary conditions for a financial institution to become a commercial bank.
Mention primary functions of commercial banks.
State two advantages of a bank account.
Define the following term:
Overdraft
Define the following term:
Money at call
Distinguish between:
Current Account and Fixed Deposit Account
Explain two methods of accepting deposits by the commercial banks.
Give two differences between recurring deposits and fixed deposits.
What are saving bank accounts?
Compare the rate of interest given to a savings bank account to that of a current account and a fixed deposit.
Mention two differences between fixed deposits and demand deposits.
Give two advantages of depositing money with commercial banks.
Explain three ways by which commercial banks advance loans to the public.
How do commercial banks invest their surplus funds?
Give two agency functions of commercial banks.
What is meant by credit creation?
Distinguish between primary deposits and secondary (derivative) deposits.
What is an overdraft facility?
Explain the meaning of saving deposits.
What is Cash Credit?
Long Answer Type Questions
Discuss any five advantages of having a bank account.
Explain three important functions of a commercial bank.
Define a commercial bank.
Explain clearly three methods adopted by Commercial Banks to borrow money from the public.
Explain three ways by which commercial banks advance loans to the public.
Explain how the commercial bank provides a credit facility through the measures given below.
Cash credit
Explain how the commercial bank provides a credit facility through the measures given below.
Discounting bills of exchange
Explain the credit creation role of commercial banks with the help of a numerical example.
Give two agency functions of commercial banks.
What is an overdraft facility?
Differentiate between demand deposits and fixed deposits. (Three points)
What is meant by an overdraft facility given by a commercial bank?
Distinguish between demand deposits and fixed deposits.
What are short term loans?
What is Cash Credit?
Give three differences between saving deposits and recurring deposits.
Goyal Brothers Prakashan solutions for इकॉनॉमिक्स [अंग्रेजी] कक्षा १० आईसीएसई 7 Commercial Banks QUESTION BANK [Pages 173 - 176]
Define a commercial bank.
Mention two necessary conditions for a financial institution to become a commercial bank.
State two advantages of a bank account.
Mention two differences between fixed deposits and demand deposits.
What is an overdraft facility?
Give two differences between recurring deposits and fixed deposits.
What is money at call?
What are demand deposits?
What are time (or fixed) deposits?
Give two advantages of depositing money with commercial banks.
What is meant by primary deposits?
What are secondary (derivative) deposits?
What is meant by credit creation?
How do commercial banks invest their surplus funds?
What is money multiplier?
How money multiplier is related to Legal Reserve Ratio?
Define a commercial bank.
Explain clearly three methods adopted by Commercial Banks to borrow money from the public.
Explain three ways by which commercial banks advance loans to the public.
What are the primary functions of commercial banks?
Give two agency functions of commercial banks.
Compare the rate of interest given to a savings bank account to that of a current account and a fixed deposit.
Why are the banks required to keep only a fraction of deposits as cash reserves?
Explain the credit creation role of commercial banks with the help of a numerical example.
Explain three important functions of a commercial bank.
Why are commercial banks called producers (creators) of money? Explain.
What is the difference between a loan and an overdraft?
What does the term 'nationalisation of banks' mean?
Explain three main features of a current bank account.
What are saving bank accounts?
Explain the features of savings bank account.
How mortagages are different from personal loans?
Solutions for 7: Commercial Banks
Goyal Brothers Prakashan solutions for इकॉनॉमिक्स [अंग्रेजी] कक्षा १० आईसीएसई chapter 7 - Commercial Banks
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Concepts covered in इकॉनॉमिक्स [अंग्रेजी] कक्षा १० आईसीएसई chapter 7 Commercial Banks are Concept of Credit Creation, Importance of Banks, Primary Functions, Agency Functions, General Utility Functions, Banking > Functions of Commercial Bank, Nationalisation of Banks, Commercial Banks.
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