Commercial Applications
…………… is the apex institution of the country's monetary and banking structure where as …………… is one of the organs of the money market.
- Commercial Bank, central bank
- Central Bank, commercial bank
- Specialised Bank, central bank
- Commercial bank, specialised bank
Banking
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Answer
Central Bank, commercial bank
Reason — The Central Bank is the apex institution of a country's banking system — it occupies the central position and acts as the leader of the banking system (a banker's bank). Commercial banks operate as one of the organs of the money market, accepting deposits and providing loans to businessmen and the public. There is only one central bank in a country, but there are several commercial banks.
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Related Questions
Concerning the functions of the Central Bank of India, which statement(s) is (are) accurate?
Statement 1: The Central Bank controls the issuance of currency and manages the country's monetary policy.
Statement 2: The Central Bank primarily focuses on maximizing its own profits.
Statement 3: The Central Bank advises the government to impose restrictions on imports and encourages exports.
Statement 4: The Central Bank's decisions have no impact on the country's economic stability.
- 1 & 3
- 2 & 4
- Only 1
- 3 & 4
It carries out the country's monetary policy.
- Commercial Bank
- Central Bank
- Specialised Bank
- None of these
Which of the following is/are correct statement(s)?
Statement 1: The Central Bank can influence the country's economy by adjusting the Cash Reserve Ratio (CRR).
Statement 2: Commercial banks can issue currency notes as long as they meet the reserve requirements set by the Central Bank.
- Only Statement 1 is true
- Only Statement 2 is true
- Both statements are true
- Both statements are false
A bank draft is always dishonoured if there are insufficient funds in the drawer's account at the time of encashment.
- True
- False