Class 11 Finance Important Chapter 5 Commercial Bank

Class 11 Finance Important Chapter 5 Commercial Bank Solutions English Medium As Per AHSEC New Syllabus to each chapter is provided in the list so that you can easily browse through different chapters ASSEB Class 11 Finance Important Solutions and select need one. AHSEC Class 11 Finance Additional Notes English Medium Download PDF. HS 1st Year Finance Important Solutions in English.

Class 11 Finance Important Chapter 5 Commercial Bank

Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. ASSEB Class 11 Banking Additional Question Answer are part of All Subject Solutions. Here we have given HS 1st Year Banking Important Notes in English for All Chapters, You can practice these here.

Commercial Bank

Chapter: 5

IMPORTANT QUESTION AND ANSWER

Answer the Following Question:

1. What are the main types of deposits accepted by commercial banks?

Ans: Demand deposits (savings and current accounts) and term deposits (fixed and recurring deposits).

2. Explain the difference between an overdraft and cash credit.

Ans: Overdraft is a temporary facility allowing withdrawal beyond the current balance, while cash credit is a more permanent credit facility up to a limit, both usually against security.

3. What is the purpose of a savings bank account?

Ans: To encourage small-scale savings among individuals with interest earnings and easy withdrawals.

4. What functions do commercial banks perform as agents of their customers?

Ans: Fund transfers, bill payments, collection of cheques, buying/selling securities, acting as trustees, and financial advisors.

5. How do modern banking services like ATMs and internet banking benefit customers?

Ans: They provide easy, quick, and 24/7 access to banking services without physical visits to branches.

6. What is bill discounting and why is it popular?

Ans: It is lending money against bills of exchange before maturity; popular due to liquidity and short-term financing.

7. Describe the consumer credit provided by commercial banks.

Ans: Short-term loans to individuals for purchasing household goods or meeting personal expenses, repayable in installments.

Fill in the Blanks:

1. Commercial banks accept deposits repayable on demand or _______.

Ans: After a fixed period.

2. An overdraft allows a customer to withdraw more than his _______ balance.

Ans: Current.

3. _______ deposit accounts require fixed monthly savings over a period.

Ans: Recurring.

Short Notes:

1. Primary Functions of Commercial Banks.

Ans: Accepting deposits and granting loans and advances are the core functions. Deposits include savings, current, fixed, and recurring accounts, while loans can be short-term, medium-term, or long-term.

2. Overdraft and Cash Credit.

Ans: Overdraft is a temporary credit facility allowing customers to withdraw beyond their balance. Cash credit is a running credit account against security, with interest charged on the actual amount withdrawn.

3. Agency Functions.

Ans: Banks perform agency roles such as transferring funds, collecting cheques and bills, making payments for customers, and acting as trustees and financial advisors.

4. Modern Banking Services.

Ans: Include ATMs for cash access, credit/debit cards for payments, internet banking for online transactions, telebanking for phone-based services, and SWIFT for international fund transfers.