L505: Functioning of Bank

We should keep our savings with banks because ____

• It is safe

• Earns Interest

• Can be withdrawn anytime

• All of above

This is the source of money in the market:

• Cash received foreign banks

• Cash issued by Central bank

• through Fractional Reserve Banking

• Both (b) and (c)

_______ is the system where bank keeps portion of cash deposit as a reserve and lend the balance amount as a loan.

Credit creation means expansion of deposits.

• True

• False

Only Central Banks are authorised to print and issue currency.

• True

• False