Question

Identify the correct statement :
(A) ‘Medium of exchange’ is the secondary function of money.
(B) In case of a bank, assets are loans given to the public.
(C) Commercial Banks are the type of institutions which are a part of the money creating system of the economy.
(D) Commercial Banks are said to be the ‘Lender of the last resort’.
(E) RBI sells securities in the open market to decrease the money supply.
Choose the correct answer from the options given below :

• A. (A), (B) & (C) only
• B. (B) & (E) Only
• C. (B) & (C) only
• D. (B), (C) & (E) only

Answer 1

The Correct Option is D

The correct option is (D) :(B), (C) & (E) only.