General Knowledge - Indian Economy - Discussion

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

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.

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

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.

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

Question is confusing and fictions.

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.

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

I think deposits will decrease.

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