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The bank rate is the rate at which the central bank of a country lends money to commercial banks to meet their long-term needs. Additional Information:- A bank rate is a monetary tool to control the money supply in the…

Time deposits refer to those deposits, in which the amount is deposited with the bank for a fixed period of time. Additional Information:- Fixed deposits refer to those deposits, in which the amount is deposited with the bank for a…

When commercial banks fail to meet their financial requirements from other sources, i.e., in case of financial emergency, they approach the central bank to give loans and advances as ‘lender of the last resort’. Additional information:- It means that if…

Bank of issue means a bank that has the legal right to issue currency notes. Additional Information:- ‘Bank of issue’ means a bank which has the legal right to issue currency notes. Most of the central banks today enjoy complete…

The central bank has the sole monopoly in note issue, whereas, this power is not enjoyed by a commercial bank. All currency (except one rupee note and coins) are issued by the central bank in India. But Commercial Bank can…

The Central Bank is an ‘Apex’ body that controls, operates, regulates, and directs the entire banking and monetary structure of the country. It is the supreme body as it occupies the topmost position in the monetary and banking system of…

LIC is not a bank as it does not accept chequeable deposits from the public although if performs the function of lending money. Additional Information: However, LIC is a financial institution, But not a bank. For a financial institution to…

Two essential conditions to become a bank are: 1. Accepting deposits 2. Advancing of loans In deposits, a commercial bank must accept the demand deposits i.e. current account and savings accounts Additional information:- A Commercial Bank is an institution that…

Ans – (c) Explanation:- Statement 1 and 2 are true as the Reserve Bank of India keeps a certain percentage of deposits of commercial banks as reserve in the form of CRR to avoid to much lending to the public.…

Ans – (c) Explanation:- Statement 1 is true. All the coins are issued by the Finance Ministry of India. Statement 2 is false as one rupee note is not issued by the Reserve Bank of India. it is issued by…