From the set of statements given in Column I and Column II, choose the correct pair of statements:
From the set of statements given in Column I and Column II, choose the correct pair of statements:
| Column I | Column II |
| (a) Function of Central Bank | (i) Lending money to public |
| (b) Function of Commercial Bank | (ii) Credit Creation |
| (c) Reverse Repo Rate | (iii) Repurchase Rate |
| (d) Secondary Deposits | (iv) Total demand deposits of the Commercial Banks |
Anurag Pathak Changed status to publish December 25, 2023
tAns: (b) Function of Commercial Bank – (ii) Credit Creation
Explanation:-
One of the function of commercial bank is the credit creation. It offers loans to the public from the deposits to the public. The loan amount is deposited into a new demand deposit.
Anurag Pathak Changed status to publish December 25, 2023
