What are the main functions of banks? Explain the role played by commercial banks in the economic development of a country.

Q: what is the benefit if the commercial banks create new money?

A: Money refers to the economic unit that is used to make exchanges and to set the value of any…

Q: Explain with example the differences between Islamic banking and conventional banking,

A: Despite the fact that Islamic commercial banks offer many of the same products as Western banks, the…

Q: can you find out major differences between large banks and small banks. Which have had higher ROAs?…

A: Following below are the major Differences between large bank and small banks: A. All those banks are…

Q: In what respects is the central bank like a private banking institution and it what respects is it…

A: The central bank is an apex banking institution in a country. It is responsible to regulate the…

Q: xplain the the four principal tools used by Bank of Ghana for monetary policy, stating clearly how…

A: The principles tools used by bank of Ghana:

Q: The importance of the Central Bank in the financial market.

A: Answer: Introduction: A central bank is the apex body that manages the monetary policy and the…

Q: What is the definition of commercial bank ?

A: Commercial Bank is that institution of finance which are of three types: Public Banks- like State…

Q: Who approves charters of new nationally chartered banks?

A: A chartered bank refers to a financial institution (FI) that accepts and safeguards monetary…

Q: Identify the relationship between money, credit and financial institutions

A: Financial institutions are companies who deal with monetary and financial transactions like…

Q: In which way do commercial bank earn profit? By printing notes By charging more to lend money than…

A: A bank charges more interest on money lent and gives less interest on money borrowed. In this way a…

Q: What are the main functions of the commercial bank in the indian economy?

A: Essential Functions  1. Commercial Deposits – Commercial banks acknowledge stores from their clients…

Q: Compare the onshore private banking with offshore private banking

A: An offshore banking institution is one that is based in a jurisdiction other than that of its…

Q: Which of the following is not a category of bank regulations? a. Capital requirements. b. Free…

A: Banks are the autonomous institutions that set various rules and regulations to regulate the money…

Q: Distinguish between IMF and Word Bank?

A: The world bank and the international monetary fund (IMF) were founded in July 1994 in the Bretton…

Q: What is a key advantage of money over other financial assets such as stocks, bonds, precious metals,…

A: One of the primary advantages of money over other financial assets is its universal acceptability.…

Q: How does the government in our country do the financial supervision Explain the steps of it and take…

A: Government alongwith central bank does financial supervision by conducting survey of financial…

Q: what is a centeral bank

A: A central bank is an institution which is given authority of controlling over all the financial…

Q: Financial intermediaries are firms that: match buyers and sellers of bonds. conduct open market…

A: Financial intermediaries are a bridge between savers and borrowers.

Q: What is the main difference between banks and other financial institution, how is it works?

A: Financial intermediaries helps in channelizing the funds from savers to borrowers. It acts as the…

Q: Assess the banking sector from the perspective of the macro indicators such as inflation rate, GDP,…

A: INTRODUCTION: INFLATION RATE:  Inflation may be a rise in prices, which may be translated because of…

Q: How is a central bank different from a typical commercial bank?

A: The Central Bank is the supreme financial institution that governs the country's banking and…

Q: Discuss two specific services provided by banks to meet the need of small and medium enterprise in…

A: credit facility is an important function to support medium and small enterprises.

Q: compare and contrast the function of money in colonial and non-colonial economies

A: Money is the currency or coins that is controlled by the Federal Reserve of a country. It means the…

Q: How to transfer funds from one bank to another bank?

A: Banks are important institutions. They are the backbone of economic growth. Banks are institutions…

Q: BANKING IN A GLOBAL WORLD: HOW DO LARGE BANKS MAKE MONEY? Bank of America borrowed $80,000,000 at 5%…

A: Given : Loan 1 : 7% simple interest note for $38,000,000 Loan 2 : 8.2% Ample discount note for…

Q: What are the roles of banks in the financial system?

A: Financial markets (such as those in which stocks or bonds are traded), securities (from bank CDs to…

Q: Assess the banking sector from the perspective of the GDP of Canada

A: GDP: Gross Domestic Product  The gross domestic product is the total monetary or market value of all…

Q: Financial Sector Reforms in Ghana from 2007 to 2020 Impact on the reforms of the economy

A: Empirical data suggest that the economic growth in the African nation of Ghana has been an…

Q: How does Micro Credit differ from money center banks?

A: Introduction Microcredit is a type of microfinance that essentially gives an individual a very…

Q: Describe the goals of the central banks of: a. USA b. CANADA c. UK

A: A central bank is a financial institution that manages the monetary system of the country. Each…

Q: Why are the number of traditional banking systems inindustrialized and developed countries…

A: Traditional banking system focuses on the physical existence of banking with offices and providing…

Q: Discuss the major differences between large banks and small banks. Which have had higher ROAs? Why?

A: Following below are the major Differences between large bank and small banks: A. All those banks are…

Q: Please explain how capital protect a bank from failure?

A: A bank failure happens when an insolvent bank is closed by a federal or state regulator.The…

Q: What is the reserved requirement for Philippine Banks?

A: Reserved requirements refers to the proportionate amount of total deposits that a commercial bank is…

Q: What are the different types of deposit accounts and loans offered to customers by any one…

A: * ANSWER :-

Q: Which government agency is responsible for handling bank failure? Describe the methods that the…

A: A bank failure occurs when a federal or state regulator closes an insolvent bank. National banks are…

Q: Explain the role of capital in protecting a bank from insolvency.

A: Bank capital reduces risk by 1) absorbing losses in an accounting framework so that banks can remain…

Q: What are the functions of the reserve Bank of India?

A: The RBI is the central bank of India whose essential capability is to oversee and administer the…

Q: How does the banking system create money? Explain by giving an example.

A: The important function which the banks performs is the creation of money in the economy. This…

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.