Question : Which of the following is not a primary function of commercial banks?
Option 1: Transfer of funds
Option 2: Creation of credit
Option 3: Lending loans to the public
Option 4: Receiving deposits from the public
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Correct Answer: Transfer of funds
Solution : The correct answer is Transfer of funds.
There are many commercial banks in our country, and the primary functions of commercial banks are the creation of credit, lending loans to the public, and receiving deposits from the public. Commercial banks receive deposits from the public at lower rates and lend loans to the public at higher rates. The transfer of funds is not a primary function of commercial banks.
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Question : Which of these is a conventional weaker section lending under the formal sector?
Option 1: Money lenders
Option 2: Self help group bank linkage model
Option 3: Micro finance institutions
Option 4: Commercial banks priority sector lending
Question : Which of the following is included in the M1 measure of money supply?
A) Currency with Public
B) Time Deposit with Post Office
C) Demand Deposits with Commercial Banks/RBI of Public Financial Institutions
Option 1: Both B and C
Option 2: Both A and C
Option 3: Only B
Option 4: Only A
Question : The commercial banks of India have to maintain a minimum percentage of cash, gold and other securities before lending loans to their customers. This is called the ____________.
Option 1: Capital Adequacy Ratio
Option 2: Current Account and Savings Account Ratio
Option 3: Statutory Liquidity Ratio
Option 4: Cash Reserve Ratio
Question : Which of the following is not a common product offered by microfinance institutions in India?
Option 1: Credit cards
Option 2: Personal loans
Option 3: Insurance products
Option 4: Savings accounts
Question : Panchpatmali deposits in Koraput district are the deposits of which of the following minerals?
Option 1: Iron ore
Option 2: Copper
Option 3: Manganese
Option 4: Bauxite
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