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Recap on Commercial Banks - Class 10 Flashcards | StudBud
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Recap on Commercial Banks - Class 10
Recap on Commercial Banks - Class 10
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Flashcards
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Questions
20
Answers
1
Current deposits are also known as ……….
Recurring deposit
Demand deposit
2
A borrower is allowed to withdraw up to a certain amount on a given security.
Cash credit
Loan
3
Overdraft facility is available for
business class deposits
current deposits
4
The commercial banks undertake the banking business with the aim of
assisting the government
helping the public
ensuring public welfare
earning profits
5
What is a Commercial Bank?
A bank that provides financial services to the government
A bank that offers money & services to the public.
6
Cheque facility is provided in _________accounts.
savings deposit
recurring deposit
7
The process of …………. begins with banks lending money out of primary deposit.
credit creation
none of these
cash credit
over draft
8
Credit creation is a secondary function of a commercial bank.
False
True
9
…………… is a credit facility granted by commercial banks to current account holders
Overdraft
Cash credit
10
Why do people deposit money in a bank?
Can be withdrawn anytime
All of above
Earns interest
Safety
11
How do commercial banks earn profits?
They have money supply
They charge interest on loans
12
Commercial bill is a type of_____.
Bill of exchange
Cheque
Stamp
Promissory Note
13
Commercial banks are profit oriented financial institutions?
True
False
14
Overdraft facility is not available on saving accounts.
True
False
15
The bank pays the amount presented by the customer after deducting the usual bank discount.
Discounting of Bills of Exchange
Discounting of promisory note
16
Deposits received from by a bank can be
Demand deposits
Fixed deposits
All of the above
Savings deposits
17
Which deposits are repayable after the expiry of the fixed period ?
Demand deposit
Fixed deposit
18
Current account deposits are
Repayable on demand
Non repayable on demand
None of these
Non repayable
19
Banks do not pay the loan amount in cash but open demand deposits in the name of the borrower creating ____ deposits.
demand
fixed
derivative
primary
20
What is the maturity time for a bill of exchange?
60 days
90 days
180 days
30 days
