A commercial bank law creates credit only if it has - (1) Cash in the vault (2) Excess reserves (3) Permission of Reserve Bank of India (4) (4) Cooperation of other banks

A commercial bank law creates credit only if it has - (1) Cash in the vault (2) Excess reserves (3) Permission of Reserve Bank of India (4) (4) Cooperation of other banks
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(1) Cash in the vault Explanation: A commercial bank is a profitseeking business, dealing in money and credit. It is a financial institution dealing in money in the sense that it accepts deposits of money from the public to keep them in its custody for safety. So also, it deals in credit, i.e., it creates credit by making advances out of the funds received as the deposits to needy people. So it creates credit from the cash deposits with it.
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A commercial bank law creates credit only if it has (1) Cash in the vault (2) Excess reserves (3) Permission of Reserve Bank of India (4) Cooperation of other banks

Description : A commercial bank law creates credit only if it has (1) Cash in the vault (2) Excess reserves (3) Permission of Reserve Bank of India (4) Cooperation of other banks 

Last Answer : Cash in the vault

The reserves held by Commercial Banks over and above the statutory minimum, with the RBI are called - (1) Cash reserves (2) Deposit reserves (3) Excess reserves (4) Momentary reserves

Description : The reserves held by Commercial Banks over and above the statutory minimum, with the RBI are called - (1) Cash reserves (2) Deposit reserves (3) Excess reserves (4) Momentary reserves

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The reserves held by Commercial Banks over and above the statutory minimum, with the RBI are called (1) Cash reserves (2) Deposit reserves (3) Excess reserves (4) Momentary reserves

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Last Answer : Excess reserves

What is the reserve deposit ration (rdr)? a) the proportion of money RBI lends to commercial banks b) the proportion of total deposits commercial banks keep as reserves c) the total proportion of money that commercial banks lend to the customers d) none of the above

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Last Answer : b) the proportion of total deposits commercial banks keep as reserves

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Regional Rural Banks arc sponsored by (1) Nationalized Commercial Bank (2) Reserve Bank of India (3) State Bank of India (4) Government of India

Description : Regional Rural Banks arc sponsored by (1) Nationalized Commercial Bank (2) Reserve Bank of India (3) State Bank of India (4) Government of India

Last Answer : (1) Nationalized Commercial Bank Explanation: The Narasimham committee conceptualized the foundation of regional rural banks in India. Five regional rural banks were set up on October 2. 1975. There ... Bank. United Bank of India and United Commercial Bank, which sponsored the regional rural banks.

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Last Answer : (3) Reserve Bank of India Explanation: In economics, the money supply or money stock, is the total amount of monetary assets available in an economy at a specific time. It is governed and ... Reserve Bank of India regulates money supply in India through its several policy rates and reserve ratios.

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Description : Regional Rural Banks are sponsored by (1) Nationalised Commercial Bank (2) Reserve Bank of India (3) State Bank of India (4) Government of India

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Commercial banks create credit (1) on the basis of their securities (2) on the basis of their assets (3) on the basis of their reserve fund (4) on the basis of their deposits

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Description : As commercial banks keep more excess reserves, what happens to money creation?

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What is "narrow money"? (1) The sum of currency in circulation and the demand deposits in banks (2) The sum of MI money and the time deposits (3) The sum of currency in circulation with the public and the cash reserves held by banks (4) The market value of the stocks held by all the holders excluding the promoters

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Last Answer : (1) The sum of currency in circulation and the demand deposits in banks Explanation: The four main monetary aggregates of measures of money supply which reflect the state of the monetary sector ... This category of money is considered to be the most readily available for transactions and commerce.

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Description : 5. An IOU of the Federal Reserve Bank of San Francisco to Bank of America is called: a. discounts b. federal funds c. reserves d. collateral

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Last Answer : (c) $900

The permission given to a bank customer to draw cheques in excess of his current account balance is called - (1) a personal loan (2) an ordinary loan (3) discounting a bill of exchange (4) an overdraft

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What does ECS in banking transactions stand for? (1) Excess Credit Supervisor (2) Extra Cash Status (3) Exchange Clearing Standard (4) Electronic Clearing Service

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If the cash-reserve ratio is lowered by the Central bank, what will be its effect on credit creation? -Do You Know?

Description : If the cash-reserve ratio is lowered by the Central bank, what will be its effect on credit creation? -Do You Know?

Last Answer : answer:

If the cash-reserve ratio is lowered by the Central bank, what will be its effect on credit creation? -General Knowledge

Description : If the cash-reserve ratio is lowered by the Central bank, what will be its effect on credit creation? -General Knowledge

Last Answer : answer:

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Refinance facility is provided by NABARD. Which institutins can avail it. (a) Commercial Bank. (b) Regional Rural Banks. © State Cooperative Banks. (d) All of the above.

Description : Refinance facility is provided by NABARD. Which institutins can avail it. (a) Commercial Bank. (b) Regional Rural Banks. © State Cooperative Banks. (d) All of the above.

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Description : Why do banks maintain cash reserve ? -SST 10th

Last Answer : Banks maintain cash reserve to arrange for daily withdrawals by depositors.

Scheduled banks are required to keep cash reserve with RBI, interms of _______ A. Section 24 of the Banking Regulation Act, 1949 B. Section 20 of the Banking Regulation Act, 1949 C. Section 42(i) of the RBI Act, 1934 D. Section 42 of Negotiable Instruments Act

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Last Answer : C. Section 42(i) of the RBI Act, 1934 Explanation: Every bank included in the Second Schedule shall maintain with the Bank an average daily balance the amount.

4. Which of the following is true about the Federal Reserve System (Fed)? a. it is a system of 12 central banks b. its Board of Governors is elected by a vote of the people c. its main policy-making body is the FDIC d. it accepts deposits from the public and makes loans to businesses e. all of the above

Description : 4. Which of the following is true about the Federal Reserve System (Fed)? a. it is a system of 12 central banks b. its Board of Governors is elected by a vote of the people c. its main policy- ... is the FDIC d. it accepts deposits from the public and makes loans to businesses e. all of the above

Last Answer : a. it is a system of 12 central banks

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Description : 8. In what ways does the Reserve Bank of India supervise the functioning of banks? Why is this necessary? -Economics 10th

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How does the Reserve Bank of India supervise the functioning of banks? -SST 10th

Description : How does the Reserve Bank of India supervise the functioning of banks? -SST 10th

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Which of the following apex body and regulators has asked banks to swap customer related information so that the frauds and defaults may be prevented in future? (A) Bombay Stock Exchange (BSE) (B) Indian Banks Association (IBA) (C) Securities Exchange Board of India (SEBI) (D) Reserve Bank of India (RBI)

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Last Answer : Answer: Reserve Bank of India (RBI)

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Last Answer : C. Both (A) and (B) Explanation: Co-operative banks are regulated by the Reserve Bank of India under the Banking Regulation Act, 1949 and Banking Laws (Application to Co-operative Societies) Act, 1965