Advertisements
Advertisements
Question
Deposits made by the people from their own resources are called ______.
Options
Primary deposits
Secondary deposits
Time deposits
None of these
Advertisements
Solution
Deposits made by the people from their own resources are called Primary deposits.
Explanation:
Primary deposits are deposits made by people using their own funds, such as when they deposit money into their bank accounts.
RELATED QUESTIONS
''The process of credit creation by commercial banks comes to an end when the total of required reserves become equal to the initial deposits."
With the help of a numerical example, prove that the given statement is true.
The ratio of total deposits that a commercial bank has to keep with Reserve Bank of India is called ______.
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| (iv) | Deposits the amount of which can be withdrawn only after a fixed period of time | D. | Secondary deposit |
To ensure that the citizens of the country have faith in the currency, the currency is issued by:
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Credit Creation comes to an end when total cash reserves become equal to the initial deposits.
Reason (R): The value of money multiplier is determined by Legal Reserve Ratio (LRR).
What is meant by credit creation?
Explain briefly the process of credit creation by commercial banks.
Why are the banks required to keep only a fraction of deposits as cash reserves?
What is the unique function of commercial banks in the money supply?
A T-account shows that a ₹10,000 cash deposit increases ______.
