Question
Explain the lending function of commercial banks.

Answer

Explanation in terms of direct loans, cash credit, overdrafts, discounting bills of exchange.

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Similar questions

India’s GDP contracted 23.9% in the April-June quarter of 2020-21 as compared to same period of 2019-20, suggesting that the lockdown has hit the economy hard.
State and discuss any two fiscal measures that may be taken by the Government of India to correct the situation indicated in the above news report.
If planned saving is less than planned investment, what changes will bring economy in equilibrium?
Name two sources each of non-tax revenue receipts.
From the following data, calculate 'gross value added at factor cost':
S. No.
 
(₹in lakhs)
(i)
Sales.
180
(ii)
Rent.
5
(iii)
Subsidy.
10
(iv)
Change in stock.
15
(v)
Purchase of raw materials.
100
(vi)
Profits.
25
Calculate net value added at factor cost from the following data:
S. No.
 
(₹in lakhs)
(i)
Purchase of machinery to be used in the production unit.
$100$
(ii)
Sales.
$200$
(iii)
Intermediate costs.
$90$
(iv)
Indirect taxes.
$12$
(v)
Change in stock.
$10$
(vi)
Excise duty.
$6$
(vii)
Stock of raw material.
$5$
Explain the 'allocation of resources' objective of Government budget.
An economy is in equilibrium. Calculate the National Income from the following:
Autonomous Consumption = 120
Marginal Propensity to Save = 0·2
Investment Expenditure = 150
Calculate Marginal Propensity to Consume from the following data about an economy which is in equilibrium:
National income = 2,000
Autonomous consumption expenditure = 200
Investment expenditure = 100
Explain the ‘store of value’ function of money.
Calculate autonomous consumption expenditure from the following data about an economy which is in equilibrium.
National income= 1200
Marginal propensity to save= 0.20
Investment expenditure= 100