General Knowledge - Indian Economy - Discussion

As the banks ar not involved in the national income the increase and decrase does not effect the deposits of us thats why the deposits will neither increase nor decrease.

Monopoly: Monopoly refers to a market situation where there exists only one sellerwith many buyers.

Thanks all for your discussions, it gives a clearer idea.

I think deposits will decrease.

All banks are converted in a single, their deposit is same. Because the deposits are not changed that is constant.

Suppose If any 3 banks X, Y, Z are nationalized, AND converted into a monopoly bank W then these three banks merged into bank W and new restrictions and laws are made such that no bank can intervene in to this W banks domain or area.

And apparently the laws and policies of individuals banks will be changed and these banks to follows laws of the bank W. But total deposits will be same because only restrictions which defines monopolism will change that is quality of banks will be change but quantity or assets will be same.

Thank you.

Question is confusing and fictions.

What is PLR and how it decide saving deposits rate of bank?

Increase and Decrease in bank deposits is totally depends upon:

1) Bank rate.

2) Repo and reverse Repo rate.

3) SLR and CRR and the main is PLR Which is bench mark which decides or controls saving deposits rate of bank.

Would you like anyone tell the name of the nationalized banks which are in no. 6?

Increase or Decrease of deposits depends upon Interest rates. So, if all banks are nationalised and meanwhile if there is no change in interest rates than, option C is right.