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Question
Deposits made by the people from their own resources are called ______.
Options
Primary deposits
Secondary deposits
Time deposits
None of these
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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
Explain the credit creation role of commercial banks with the help of a numerical example.
Do you consider a commercial bank ‘creator of money’ in the economy’?
______ is the main source of money supply in an economy.
Banks are able to create credit many times more than initial deposits through ______.
Read the given extract carefully and answer the following questions.
| Mr. X wanted to buy an expensive motorcycle for his son but he did not have sufficient money to buy it. He approached a public sector commercial bank for the loan. The bank asked Mr. X to deposit 20% cash of the loan amount and rest 80% of the loan amount was given by the bank. |
- Briefly explain a Commercial Bank.
- What is the regulation of consumer credit in selective credit control?
- Name the bank which controls all the commercial banks and financial institutions in the country.
Match the following:
| Column I | Column II | ||
| A. | Primary deposits | (i) | Payable on demand |
| B. | Derivative deposits | (ii) | Deposits for a fixed period of time |
| C. | Demand deposits | (iii) | Cash deposits of people |
| D. | Term deposits | (iv) | Deposits created by banks (or loan deposits) |
What is money multiplier?
The deposit multiplier formula is ______.
If CRR is 20% and initial deposit is ₹1000, total deposits created are ______.
In the credit creation process, loans of one bank become ______.
