Question : The deposits which arise on account of loans by the banks to the people are called:
Option 1: Primary deposits
Option 2: Secondary deposits
Option 3: Cash deposits
Option 4: Term deposits
Correct Answer: Secondary deposits
Solution : The correct answer is (b). Secondary deposits
Secondary deposits refer to the deposits that arise on account of loans by banks to individuals or businesses. When a bank extends a loan to a borrower, the funds provided by the bank are deposited into the borrower's account. These deposits are known as secondary deposits because they are created as a result of the loan transaction.
Question : Which of the following is a not part of advancing of loans?
Option 1: Cash credit
Option 2: Demand deposits
Option 3: Short term loans
Option 4: Overdraft facility
Question : High-powered money includes:
Option 1: Currency and Coins held by the public
Option 2: Currency, cash reserves with banks, and demand deposits
Option 3: Currency and coins held by the public and deposits held by government and commercial banks
Option 4: Currency and demand deposits
Question : Demand deposits include______
Option 1: Saving account deposits with fixed deposits
Option 2: Saving account deposits with current account deposits
Option 3: Current account deposits with fixed deposits
Option 4: All types of deposits
Question : The reserve held by Commercial Banks over and above the statutory minimum with the RBI are called:
Option 1: Cash reserve
Option 2: Deposits reserves
Option 3: excess reserves
Option 4: momentary reserves
Question : The interest rate charged by commercial banks on loans is called:
Option 1: Repo rate
Option 2: Reverse repo rate
Option 3: Prime lending rate
Option 4: None of the above
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