Which of the following are the limitations in the creation of credit of commercial banks? A. The amount of cash that commercial banks possess B. Supply of collateral security C. Monetary policy of the central bank D. Allied deposits scheme E. Deposits linked with special benefits Choose the correct answer from the options given below:
A, B and C only
In the traditional credit-creation model, lending capacity is constrained by cash/reserves, acceptable collateral and central-bank monetary policy. Thus A, B and C are correct. Deposit schemes D and E are products, not the listed general constraints.
Important Questions from Commercial Banks
Which of the following banks is the largest commercial bank in India?
Which one of the following is a primary function of commercial banks?
Which of the following is/are function(s) of a commercial bank?
- Accepting deposits
- Giving loans
- Payments and settlements
Imposition of price _______ below the equilibrium price leads to excess _______.
- Which of the following are liabilities of commercial banks ?
I. Capital and reserves
II. Cash and balances with RBI
III. Investments
IV. Borrowings
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