BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is NOT a source of funds of a commercial bank?
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Capital
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Call money
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Deposits
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Cash reserves with RBI
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Explanation:
Detailed explanation-1: -Commercial banks make money by providing and earning interest from loans such as mortgages, auto loans, business loans, and personal loans. Customer deposits provide banks with the capital to make these loans.
Detailed explanation-2: -Therefore, Issuance of Letters of Credit is not the fund based business of commercial banks.
Detailed explanation-3: -The Reserve Bank of India is not a commercial bank because it is the central bank of India with the authority to issue currency in the country.
Detailed explanation-4: -Out of the given options, fixed deposit rate is not decided by RBI.
There is 1 question to complete.