16 Questions
What is the main function of a commercial bank?
Accepting deposits from the public and giving short-period loans
According to the Indian Banking Regulation Act, 1949, how does it define the activity of a bank?
Accepting deposits of money from the public and lending to households, firms, and government
What is the role of a central bank in a country's banking and financial structure?
Controlling and regulating the banking and financial structure of the country
What is the primary purpose of cooperative banks?
Accepting deposits from the public and giving short-period loans
Which type of bank creates deposit money and credit money through its operations?
Commercial bank
What distinguishes a central bank from other types of banks?
Issuing currency in the country and controlling/regulating the banking system
What is the primary function of a commercial bank?
Accept deposits from the public
Which type of deposit is known as demand deposit?
Current account deposits
What is the purpose of Exim banks?
To provide long term financial help to exporters and importers
What is the main function of land development banks?
Provide long term credit to farmers for land improvement
Who are the primary holders of current account deposits?
Traders and businessmen
Which type of deposit supports international trade and business transactions?
Current account deposits
What is the purpose of regional rural banks?
Meet the needs of the weaker sections of the rural population
What do saving account deposits support in the Indian economy?
Convenience in financial operations
What is the role of exchange rate in the context of foreign trade?
To facilitate foreign trade transactions
What is the main source of resources for a commercial bank?
Deposits from the public
Test your knowledge about the types of banks in India and the functions of a bank as defined by the Indian Banking Regulation Act, 1949. Explore the different categories of banks and their roles in the financial system.
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