Deposits mobilised by the banks are utilised for:
i. loans and advances
ii. investment in government and other approved securities in fulfilment of liquidity stipulation
iii. investment in commercial paper, shares, debentures up to stipulated ceilings

Related MCQs

• Commercial banks to expand deposit through expanding their loans and advances is known as--------.
• Two types of Commercial banks have been stipulated by Section_______ of the Reserve Bank of India Act, 1934:
• Accepting deposits and lending money is the ………………………………………….function of commercial banks
• Which banks which accept deposits from the public and lend them mainly to commerce for short periods?
• The deposit balances kept by all commercial banks with the central bank are known as---------.
• The nationalization of 14 major commercial bank was in June 1969 & six more banks were nationalized in April
• Which of the following limits the power of credit creation by commercial banks
• ------ is the rate at which the central bank rediscounts the bills of commercial banks
• 14th Major commercial banks were nationalized in 19th July
• Which bank has given the instructions to the commercial banks regarding the immediate credit of outstation cheque?