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प्रश्न
What are secondary (derivative) deposits?
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उत्तर
Secondary or derivative deposits refer to those deposits which arise when the bank transfers the loan amount to the borrower's accounts.
संबंधित प्रश्न
Explain the credit creation role of commercial banks with the help of a numerical example.
Answer the following question.
What role does it play in determining the credit creation power of the banking system? Use a numerical illustration to explain.
Answer the following question.
Explain, using a numerical example, how a reduction in reserve deposit ratio, affects the credit creation power of the banking system.
The creation of ______ is called credit creation.
The ______ creation is called credit creation.
______ is the rate of interest charged by the central bank on loans given to the commercial bank.
Explain the role of legal reserve ratio and Bank rate in correcting inflationary gap in an economy.
Identify which of the following Statement is true?
Match the following and select the correct option.
| Column A | Column B | ||
| (i) | A deposit created by a customer | A. | Term deposit |
| (ii) | A deposit created by bank when loan is granted | B. | Demand deposits |
| (iii) | Deposits payable by bank on demand | C. | Initial deposit |
| (iv) | Deposits the amount of which can be withdrawn only after a fixed period of time | D. | Secondary deposit |
What is meant by credit creation?
