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Questions and Answers
What is the primary requirement if a customer wishes to withdraw more than the specified amount at any one time?
What is the primary requirement if a customer wishes to withdraw more than the specified amount at any one time?
Give prior notice
What is the rate of interest like on a credit balance compared to a fixed deposit?
What is the rate of interest like on a credit balance compared to a fixed deposit?
Less than that on fixed deposit
What is the other name for Fixed Deposits as mentioned in the text?
What is the other name for Fixed Deposits as mentioned in the text?
Time deposits
What is the condition for withdrawal of Fixed Deposits before the expiry of the period?
What is the condition for withdrawal of Fixed Deposits before the expiry of the period?
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In what range of time periods are Fixed Deposits typically accepted in India?
In what range of time periods are Fixed Deposits typically accepted in India?
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What is the most common way of lending by commercial banks as mentioned in the text?
What is the most common way of lending by commercial banks as mentioned in the text?
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What is credit creation in banking?
What is credit creation in banking?
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How can bank deposits be categorized according to the text?
How can bank deposits be categorized according to the text?
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What are primary deposits also known as?
What are primary deposits also known as?
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What is the role of the bank in primary deposits?
What is the role of the bank in primary deposits?
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How are derivative deposits created according to the text?
How are derivative deposits created according to the text?
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What is the basis of credit money in banking?
What is the basis of credit money in banking?
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What is the term used to describe the power of commercial banks to expand deposits through loans, advances, and investments?
What is the term used to describe the power of commercial banks to expand deposits through loans, advances, and investments?
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How does the amount of cash received by banks affect their power to create credit?
How does the amount of cash received by banks affect their power to create credit?
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Explain the impact of the cash reserve ratio on the volume of credit that banks can create.
Explain the impact of the cash reserve ratio on the volume of credit that banks can create.
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What role do the banking habits of the people play in the process of credit creation?
What role do the banking habits of the people play in the process of credit creation?
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Explain how the nature of business conditions in the economy influences credit creation.
Explain how the nature of business conditions in the economy influences credit creation.
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Who has the authority to prescribe and change the cash reserve ratio to be kept by commercial banks?
Who has the authority to prescribe and change the cash reserve ratio to be kept by commercial banks?
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What happens to credit creation during a period of prosperity?
What happens to credit creation during a period of prosperity?
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How does the volume of bank credit change during business depression?
How does the volume of bank credit change during business depression?
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What can reduce the power of banks to create credit according to the text?
What can reduce the power of banks to create credit according to the text?
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What assets are required for a bank to create credit according to the text?
What assets are required for a bank to create credit according to the text?
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What can influence the volume of credit created by banks, according to the text?
What can influence the volume of credit created by banks, according to the text?
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How can leakages affect the process of credit creation?
How can leakages affect the process of credit creation?
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What are the three most important guiding principles of asset distribution in a bank?
What are the three most important guiding principles of asset distribution in a bank?
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What is considered the first line of defense to the bank in terms of assets?
What is considered the first line of defense to the bank in terms of assets?
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What does 'Money at Call and Short Notice' in a bank's assets include?
What does 'Money at Call and Short Notice' in a bank's assets include?
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How are the various items on the assets side of a bank distributed?
How are the various items on the assets side of a bank distributed?
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What does the second line of defense to a bank refer to?
What does the second line of defense to a bank refer to?
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Why is cash on hand considered the first line of defense to a bank?
Why is cash on hand considered the first line of defense to a bank?
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