Commercial Applications
The central bank settles the claims of commercial banks is called ……………
- Banking facility
- Ledger facility
- Clearing House Facility
- Accounts facility
Answer
Clearing House Facility
Reason — As a clearing house, the central bank settles the claims of commercial banks and enables them to clear their dues through book entries. It makes debit and credit entries in their accounts for convenient adjustment of their daily balances with one another. This avoids cash withdrawals during inter-bank settlements and helps stabilise the banking system.
Related Questions
Time Deposit account is also known as ……………
- Recurring Deposit account
- Current account
- Saving Deposit account
- Fixed Deposit account
Assertion (A): Central Bank and Commercial Banks have distinct roles in economy.
Reason (R): Central Bank controls money supply and sets policy. Commercial Banks take deposits and make loans to customers.
- A is true but R is false
- A is false but R is true
- Both A and R are true and R explains A
- Both A and R are true but R does not explain A
Which account holder gets Overdraft facility?
- Saving Bank account
- Current account
- Recurring deposit
- Fixed deposit account
Public Banks are the banks which are ……………
- owned and controlled by the Government
- owned and controlled by private businessmen
- owned and controlled by foreign banks
- owned by central bank