Banks in India hold about …….. % of their deposits as cash.
A) 20%
B) 10%
C) 15%
D) 25%
1 Answers
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Given Cash Reserve Ratio 0.19 and Statutory Liquidity Ratio 0.06, how much will be the credit creation if there are new deposits of Rs 1,000 crore in
Legal reserve ratio `= "CRR" + SLR = 0.19 + 0.6 = 0.25` Credit creation = New deposit `1//"LRR" = 1000 xx 1//0.25 = Rs 4,000` crore
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i. Saving Deposit, Recurring Deposit, Cash Credit. Fixed Deposit ii. Overdraft, Fixed Deposit, Discounting of Bills, Cash Credit
i. Cash Credit ii. Fixed Deposit
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i. Accepting deposits is the secondary function of Banks. ii. Businessman opens Fixed Deposit Account.
i. Accepting deposits is the primary function of Banks. ii. Businessman opens Current Account. iii. Under an overdraft facility, a businessman/account holder can overdraw from his account.
2 Answers 1 views
The primary functions of Commercial Banks include-Accepting deposits and Lending funds.
The main object of a commercial bank is to accept deposits and lending money to customers or account holders: To encourage the people who have surplus funds. To encourage the saving habit...
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The Bank accepts two types of deposits from the public i.e. Demand and Time Deposits.
The basic aim of the bank is to pool the excess money to the bank and develop the habit of saving amount people. Bank accepts deposits in two forms i.e. Demand...
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Overdraft as per Cash Book means debit balance as per Cash Book.
This statement is False. Overdraft as per Cash Book means credit balance as per cash book. Cashbook debit means deposits. When cash book debit balance is greater it means Bank Balance...
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Legal Reserve Ratio (LRR) is that ratio of deposits which banks are legally bound to keep in the form of cash with themselves and with the Central Ban
Correct Answer - True The percentage ( ratio ) of deposits that banks keep with themselves is called SLR and what they keep with Central Bank is called CRR.
2 Answers 1 views
Banks make use of the deposits to meet the requirements of the people
Answer is (C) Loan
2 Answers 1 views
Banks charge a interest rate on loans than what they offer on deposits.
Answer is (A) Higher
2 Answers 1 views
The balance of cash at bank as shown by the Cash Book of Pan & Pan Co. on 31st December,m 2016, was ₹7,500. On checking the entries in the Cash Book w
Correct Answer - Cr. Balance as per Pass Book ₹9,015.
2 Answers 1 views