Answered

1. Which of the following statements are correct with regard to banks?

(i) Banking has been defined under the Banking Regulation Act.
(ii) Scheduled Banks are those banks which have been listed in the 2nd schedule of the RBI Act 1934.
(iii) The banks where Government shareholding is 50% or more are called Public Sector Banks.
(iv) Banks which are incorporated in India and have opened branches with the permission of RBI are known as Foreign Banks.

(a) (i), (ii), and (iv)
(b) (i), (ii), and (iii)
(c) (ii), (iii), and (iv)
(d) (i) and (iii)



Answer :

GinnyAnswer

Final answer:

Banks are essential for storing money and providing loans, using a fractional reserve banking system.


Explanation:

Banks play a vital role in the financial system by offering services such as storing depositors' money and lending. Their balance sheets include assets like loans and investments along with liabilities such as deposits and debt. Fractional reserve banking system allows banks to lend out a portion of the deposits they hold, creating more money in circulation.


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