Question

Match the following groups:Group A 1. D-mat account 2. over draft facility 3. ATM facility4. commercial bank 5. credit creationGroup B a. current account b. agency function c. buying and selling of shares d. general function e. recurring account f. profit making g. central bank h. derivative deposits

Answer 1

Convertible Paper Money: ... Under this, money is convertible into standard coins made of gold or silver. Under it the paper currency issued by the Central Bank was fully backed by the reserves of gold and silver of equal value kept by it. Therefore, this paper currency system was called “Full Reserve System”.

Answer 2

The two columns are matched as follows:

1. D-mat account- buying and selling of shares ( associated with all electronic transaction related to trade).

2. over draft facility- current account( money can be withdrawn even if balance is zero).

3. ATM facility- general function( serves the general purpose of withdrawing money).

4. commercial bank- profit making( managing their assets and liabilities to make profit).

5. credit creation- derivative deposits( these deposits form the base of credit creation).