General Knowledge - Indian Economy - Discussion

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.

May I know what is mean by monopoly after every bank in a economy being nationalised.

If government will work on social welfare too after being monopolized then deposit rates should be increase na ?

Why they will be neither increase no decrease ?

Its right that when all the banks will nationalized then every bank would comes under the government, so government will not use his monopoly power for increasing interest rate because its work for human or nations welfare and also there will no access would take place so the deposit will be constant.

Its sure that the monopoly power only used in profit motives by private sectors like as reliance, idea and other trademarks communication companies but if govt will be monopolized then it will work on the basis of human welfare not in profit motive like as RAILWAY there is in fixed fair taken by seeing every stages of person which is living in society which is living in society. So the deposit will be constant not increase and nor decrease.

It is that form of market where there are many seller of the product but the product of each seller is different from the product of others. 4 eg: firm producing different brand of toothpaste like close up, colgate, pepsodent etc.

Please tell me about monopolostic market?

It will remain the same, because bank do not increase the national income. So it remains the same immaterial wheather banks are there or not.

Kunal Malhotra you are right.

When a bank is nationalized it has to deposit a fixed amount with RBI and there will be change in deposits. So how the answer is c.

The question of increasing or decreasing interest rates arises aftee the merger of banks. If all the banks are nationalized and onverted into a monopoly bank, then the total number of deposits will be eaual to the sum of all the deposits of every individual bank. Hence the total number of deposits will neither increase or decrease i.e. it will remain the same.