Advertisements
Advertisements
Question
What is meant by primary deposits?
Advertisements
Solution
Primary deposits are those deposits which people deposit in cash in their accounts with the bank.
RELATED QUESTIONS
Credit creation by commercial banks is determined by (Choose the correct alternative)
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.
Banks are able to create credit many times more than initial deposits through ______.
Credit creation by the commercial bank is determined by ______.
The process of money creation or credit creation is done by ______.
Deposits made by the people from their own resources are called ______.
If legal reserve ratio is 20%, the value of money multiplier would be ______.
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).
State the advantage of a credit card over currency notes.
The deposit multiplier formula is ______.
