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Questions and Answers
Banking occupies one of the most important positions in the modern economic world. It is necessary for ______ and industry.
Banking occupies one of the most important positions in the modern economic world. It is necessary for ______ and industry.
trade
Modern banking is of recent origin. It is one of the results of the Industrial Revolution and the child of economic ______.
Modern banking is of recent origin. It is one of the results of the Industrial Revolution and the child of economic ______.
necessity
Its presence is very helpful to the economic activity and industrial progress of a country. Commercial banking play a great role for this contribution and this chapter focuses on the issues of commercial ______.
Its presence is very helpful to the economic activity and industrial progress of a country. Commercial banking play a great role for this contribution and this chapter focuses on the issues of commercial ______.
banking
A commercial bank is a profit-seeking business firm, dealing in money and ______.
A commercial bank is a profit-seeking business firm, dealing in money and ______.
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A bank is like a reservoir into which flow the savings, the idle surplus money of households and from which loans are given on interest to businessmen and others who need them for investment or productive ______.
A bank is like a reservoir into which flow the savings, the idle surplus money of households and from which loans are given on interest to businessmen and others who need them for investment or productive ______.
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Commercial banks perform a variety of functions which are common to both developed and developing ______.
Commercial banks perform a variety of functions which are common to both developed and developing ______.
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Accepting deposits is the primary function of a commercial ______.
Accepting deposits is the primary function of a commercial ______.
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Banks generally accept three types of deposits: Current Deposits, Savings Deposits, and Fixed ______.
Banks generally accept three types of deposits: Current Deposits, Savings Deposits, and Fixed ______.
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These deposits are also known as demand ______.
These deposits are also known as demand ______.
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Generally, no interest is allowed on current ______.
Generally, no interest is allowed on current ______.
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Savings Deposits are meant mainly for professional men and middle class ______.
Savings Deposits are meant mainly for professional men and middle class ______.
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Money can be deposited at any time but the maximum cannot go beyond a certain ______.
Money can be deposited at any time but the maximum cannot go beyond a certain ______.
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If the customer wishes to withdraw more than the specified amount at any one time, he has to give ______ notice.
If the customer wishes to withdraw more than the specified amount at any one time, he has to give ______ notice.
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Interest is allowed on the credit balance of this account. The rate of interest is less than that on ______ deposit.
Interest is allowed on the credit balance of this account. The rate of interest is less than that on ______ deposit.
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This system greatly encourages the habit of thrift or ______.
This system greatly encourages the habit of thrift or ______.
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Fixed Deposits: These deposits are also known as ______ deposits.
Fixed Deposits: These deposits are also known as ______ deposits.
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Fixed deposits are liked by depositors both for their safety and as well as for their ______.
Fixed deposits are liked by depositors both for their safety and as well as for their ______.
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The second primary function of a commercial bank is to make loans and advances to all types of persons, particularly to ______ and entrepreneurs.
The second primary function of a commercial bank is to make loans and advances to all types of persons, particularly to ______ and entrepreneurs.
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Credit creation will be large during a period of ______, while it will be smaller during a depression.
Credit creation will be large during a period of ______, while it will be smaller during a depression.
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During periods of ______, there will be more demand for loans and advances for investment purposes.
During periods of ______, there will be more demand for loans and advances for investment purposes.
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Many people approach banks for ______ and advances.
Many people approach banks for ______ and advances.
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Hence, the volume of bank credit will be ______.
Hence, the volume of bank credit will be ______.
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If people desire to hold more cash, the power of banks to create credit is ______.
If people desire to hold more cash, the power of banks to create credit is ______.
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The extent of credit creation will largely depend upon the monetary policy of the Central Bank of the country. The Central Bank has the power to influence the volume of money in circulation and through this it can influence the volume of credit created by the ______.
The extent of credit creation will largely depend upon the monetary policy of the Central Bank of the country. The Central Bank has the power to influence the volume of money in circulation and through this it can influence the volume of credit created by the ______.
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The Central Bank has certain powerful weapons, like the bank rate, open market operations with the help of which it can exercise control on the expansion and contraction of credit by the commercial bank. Balance Sheet of the Bank reflects the bank's _____________.
The Central Bank has certain powerful weapons, like the bank rate, open market operations with the help of which it can exercise control on the expansion and contraction of credit by the commercial bank. Balance Sheet of the Bank reflects the bank's _____________.
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Liabilities are those items on account of which the bank is liable to pay others. They denote other’s claims on the bank. Now we have to analyze the various items on the liabilities side. 1. Deposits: The deposits of the public like demand deposits, savings deposits and fixed deposits constitute an important item on the liabilities side of the ______. The success of any banking business depends to a large extent upon the degree of confidence it can instill in the minds of the depositors. The bank can never afford to forget the claims of the depositors. Hence, the bank should always have enough cash to honor the obligations of the depositors. 2. Borrowings from Other Banks: Under this head, the bank shows those loans it has taken from other banks. The bank takes loans from other banks, especially the central bank, in certain extraordinary circumstances. 3. Bills Payable: These include the unpaid bank drafts and telegraphic transfers issued by the bank. Liabilities are those items on account of which the bank is liable to pay others. They denote other’s claims on the bank. Now we have to analyze the various items on the liabilities side. 1. Deposits: The deposits of the public like demand deposits, savings deposits and fixed deposits constitute an important item on the liabilities side of the ______. The success of any banking business depends to a large extent upon the degree of confidence it can instill in the minds of the depositors. The bank can never afford to forget the claims of the depositors. Hence, the bank should always have enough cash to honor the obligations of the depositors. 2. Borrowings from Other Banks: Under this head, the bank shows those loans it has taken from other banks. The bank takes loans from other banks, especially the central bank, in certain extraordinary circumstances. 3. Bills Payable: These include the unpaid bank drafts and telegraphic transfers issued by the bank. Liabilities are those items on account of which the bank is liable to pay others. They denote other’s claims on the bank. Now we have to analyze the various items on the liabilities side. 1. Deposits: The deposits of the public like demand deposits, savings deposits and fixed deposits constitute an important item on the liabilities side of the ______. The success of any banking business depends to a large extent upon the degree of confidence it can instill in the minds of the depositors. The bank can never afford to forget the claims of the depositors. Hence, the bank should always have enough cash to honor the obligations of the depositors. 2. Borrowings from Other Banks: Under this head, the bank shows those loans it has taken from other banks. The bank takes loans from other banks, especially the central bank, in certain extraordinary circumstances. 3. Bills Payable: These include the unpaid bank drafts and telegraphic transfers issued by the bank.
Liabilities are those items on account of which the bank is liable to pay others. They denote other’s claims on the bank. Now we have to analyze the various items on the liabilities side. 1. Deposits: The deposits of the public like demand deposits, savings deposits and fixed deposits constitute an important item on the liabilities side of the ______. The success of any banking business depends to a large extent upon the degree of confidence it can instill in the minds of the depositors. The bank can never afford to forget the claims of the depositors. Hence, the bank should always have enough cash to honor the obligations of the depositors. 2. Borrowings from Other Banks: Under this head, the bank shows those loans it has taken from other banks. The bank takes loans from other banks, especially the central bank, in certain extraordinary circumstances. 3. Bills Payable: These include the unpaid bank drafts and telegraphic transfers issued by the bank. Liabilities are those items on account of which the bank is liable to pay others. They denote other’s claims on the bank. Now we have to analyze the various items on the liabilities side. 1. Deposits: The deposits of the public like demand deposits, savings deposits and fixed deposits constitute an important item on the liabilities side of the ______. The success of any banking business depends to a large extent upon the degree of confidence it can instill in the minds of the depositors. The bank can never afford to forget the claims of the depositors. Hence, the bank should always have enough cash to honor the obligations of the depositors. 2. Borrowings from Other Banks: Under this head, the bank shows those loans it has taken from other banks. The bank takes loans from other banks, especially the central bank, in certain extraordinary circumstances. 3. Bills Payable: These include the unpaid bank drafts and telegraphic transfers issued by the bank. Liabilities are those items on account of which the bank is liable to pay others. They denote other’s claims on the bank. Now we have to analyze the various items on the liabilities side. 1. Deposits: The deposits of the public like demand deposits, savings deposits and fixed deposits constitute an important item on the liabilities side of the ______. The success of any banking business depends to a large extent upon the degree of confidence it can instill in the minds of the depositors. The bank can never afford to forget the claims of the depositors. Hence, the bank should always have enough cash to honor the obligations of the depositors. 2. Borrowings from Other Banks: Under this head, the bank shows those loans it has taken from other banks. The bank takes loans from other banks, especially the central bank, in certain extraordinary circumstances. 3. Bills Payable: These include the unpaid bank drafts and telegraphic transfers issued by the bank.
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The business of a bank is reflected in its ___________ and hence its financial position as well.
The business of a bank is reflected in its ___________ and hence its financial position as well.
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The balance sheet is issued usually at the end of every ___________ of the bank.
The balance sheet is issued usually at the end of every ___________ of the bank.
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Liabilities are those items on account of which the bank is liable to pay others. They denote other’s claims on the bank. Now we have to analyze the various items on the ______ side. 1. Deposits: The deposits of the public like demand deposits, savings deposits and fixed deposits constitute an important item on the ______ side of the balance sheet. The success of any banking business depends to a large extent upon the degree of confidence it can instill in the minds of the depositors. The bank can never afford to forget the claims of the depositors. Hence, the bank should always have enough cash to honor the obligations of the depositors. 2. Borrowings from Other Banks: Under this head, the bank shows those loans it has taken from other banks. The bank takes loans from other banks, especially the central bank, in certain extraordinary circumstances. 3. Bills Payable: These include the unpaid bank drafts and telegraphic transfers issued by the bank. Liabilities are those items on account of which the bank is liable to pay others. They denote other’s claims on the bank.
Liabilities are those items on account of which the bank is liable to pay others. They denote other’s claims on the bank. Now we have to analyze the various items on the ______ side. 1. Deposits: The deposits of the public like demand deposits, savings deposits and fixed deposits constitute an important item on the ______ side of the balance sheet. The success of any banking business depends to a large extent upon the degree of confidence it can instill in the minds of the depositors. The bank can never afford to forget the claims of the depositors. Hence, the bank should always have enough cash to honor the obligations of the depositors. 2. Borrowings from Other Banks: Under this head, the bank shows those loans it has taken from other banks. The bank takes loans from other banks, especially the central bank, in certain extraordinary circumstances. 3. Bills Payable: These include the unpaid bank drafts and telegraphic transfers issued by the bank. Liabilities are those items on account of which the bank is liable to pay others. They denote other’s claims on the bank.
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Deposits: The deposits of the ______ like demand deposits, savings deposits and fixed deposits constitute an important item on the liabilities side of the balance sheet. The success of any banking business depends to a large extent upon the degree of confidence it can instill in the minds of the depositors. The bank can never afford to forget the claims of the depositors. Hence, the bank should always have enough cash to honor the obligations of the depositors. Borrowings from Other Banks: Under this head, the bank shows those loans it has taken from other banks. The bank takes loans from other banks, especially the central bank, in certain extraordinary circumstances. Bills Payable: These include the unpaid bank drafts and telegraphic transfers issued by the bank. Liabilities are those items on account of which the bank is liable to pay others. They denote other’s claims on the bank.
Deposits: The deposits of the ______ like demand deposits, savings deposits and fixed deposits constitute an important item on the liabilities side of the balance sheet. The success of any banking business depends to a large extent upon the degree of confidence it can instill in the minds of the depositors. The bank can never afford to forget the claims of the depositors. Hence, the bank should always have enough cash to honor the obligations of the depositors. Borrowings from Other Banks: Under this head, the bank shows those loans it has taken from other banks. The bank takes loans from other banks, especially the central bank, in certain extraordinary circumstances. Bills Payable: These include the unpaid bank drafts and telegraphic transfers issued by the bank. Liabilities are those items on account of which the bank is liable to pay others. They denote other’s claims on the bank.
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