English

Which of the following is not a function of a commercial bank? - Economic Applications

Advertisements
Advertisements

Question

Which of the following is not a function of a commercial bank? 

Options

  • Accepting deposits from public

  • Note issue

  • Giving loans

  • Credit creation 

MCQ
Advertisements

Solution

Note issue

Explanation:

The function of note issuance is not performed by commercial banks; it is the responsibility of the central bank. 

shaalaa.com
Functions of a Central Bank
  Is there an error in this question or solution?
Chapter 9: Central Banks - QUESTIONS [Page 212]

APPEARS IN

Goyal Brothers Prakashan Economic Applications [English] Class 10 ICSE
Chapter 9 Central Banks
QUESTIONS | Q 9. | Page 212
Goyal Brothers Prakashan Economics [English] Class 10 ICSE
Chapter 8 Central Bank
Exercise | Q 9. | Page 157

RELATED QUESTIONS

Explain the functions of the RBI with respect to the following:

  1. Custodian of foreign exchange reserves.
  2. Monopoly of note issue.
  3. Clearing house facility.
  4. Banker and fiscal agent to the government.

The RBI settles claims of other commercial banks by a process of book entries. It helps to stabilize the banking system in the economy. Which function of the Central bank is explained here.


The Central bank is having the authority to regulate the amount of money supply in the economy.

Based on the above explain the following.

  1. Credit Rationing
  2. CRR
  3. Regulation of Margin Requirements
  4. Bank Rate

Which of the following is/are the function(s) of central bank.


The ______ is the central bank of our country which has the authority to print currency notes.


Give two major functions of the central bank of our country.


What is meant by clearing house function of the RBI?


The main advantage of giving the monopoly right of note issue to the central bank is that it ______.


The central bank acts as ______.


Identify the function of RBI as indicated by the following image.


Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:

Assertion (A): Central Bank acts as a banker to the Government.

Reason (R): Except the one rupee note, all other currency notes bear the signature of Governor of RBI.


Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:

Assertion (A): Reserve Bank of India creates credit.

Reason (R): Reserve Bank of India is known as a bank of note issue.


Give two reasons why the central banks enjoy monopoly of note issue.


Mention two ways in which the Reserve Bank of India assists the commercial banks.


How is Bank rate altered to correct a depression in an economy? 


Who normally keep their deposits in the Central Bank?


The Central Bank is the apex monetary institution of the country. Explain its role of a Banker of the Government. 


Explain the banker’s bank function of the Central Bank.


Name the institution that enjoys the monopoly of note issue in India.


Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×