In the context of commercial bank, which of the following alternatives is correct?
In the context of commercial bank, which of the following alternatives is correct?
(i) Deposits are liabilities of banks
(ii) Commercial banks are creator of money
(iii) Commercial banks accept deposits of the general public
(iv) Accept deposits of World Bank for Agriculture and Rural Developments
Identify the correct alternative from the following:
Alternatives:
(a) (i) and (ii)
(b) (ii) and (iii)
(c) (i), (ii), and (iii)
(d) (i) and (iv)
Ans – (c)
Explanation:-
Deposits are liabilities of banks as it belong to the general public
Commercial banks create money by offering the loan to the general public and depositing it into a new demand deposit.
Commercial banks accept deposits from the general public.
The commercial bank does not open a bank account with the World Bank for Agriculture and Rural Development