Chapter 12 - Commercial Bank Economics Solutions for Class 12 Commerce Economics

Chapter 12 - Commercial Bank

Economics Solutions for Class 12 Commerce Economics

Fill in the blanks with appropriate alternatives given in the brackets.

Match the following

State whether the following statements are True or False.

1. Commercial banks are the backbone of modern economy.

2. The saving bank deposit can be opened with a small amount.

3. Credit money is created by the central bank of a country.

4. There is no difference between primary deposit and secondary deposit of a commercial bank.

Define explain the following concepts.

1. Fixed deposits

2. Cash credit

3. Safe deposit vault

4. Discounting of bills

Give reasons or explain the following statements:

1. Commercial banks provide agency functions to earn profits.

2. Overdraft facility is provided to current account holders.

3. Saving account deposits are usually opened by salaried class.

4. Rate of interest on fixed deposit is high.

Distinguish between:

1. Call loans and long term loans

2. Current account and saving account

3. Cash credit and overdraft facility

Write short notes on:

1. Derivative deposit

2. E-banking facility

3. D-mat account

4. Long term loans

Answer the following questions:

Explain various types of deposits.

What are the different types of loans provided by commercial banks?

State with reasons whether you agree or disagree with the following statements.

1. A commercial bank can create credit on the basis of primary deposit.

2. Commercial banks perform many general utility services.

Answer in detail:

What are the primary functions of commercial banks?

Explain the process of credit creation.

What are the secondary functions of commercial banks?