Advertisements
Advertisements
Question
Identify which of the following Statement is true?
Options
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.
Advertisements
Solution
Both Primary deposits and initial deposits are the same thing and Secondary deposits and derivative deposits mean the same thing.
RELATED QUESTIONS
Do you consider a commercial bank ‘creator of money’ in the economy’?
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.
The process of money creation or credit creation is done by ______.
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.
The ratio of total deposits that a commercial bank has to keep with Reserve Bank of India is called ______.
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 ______.
Which of these banks formulates the credit control tools?
To ensure that the citizens of the country have faith in the currency, the currency is issued by:
What are secondary (derivative) deposits?
Why are the banks required to keep only a fraction of deposits as cash reserves?
