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 :

(B), (C) and (E) Only

The correct answer is option (4) : (B), (C) and (E) Only

(A) 'Medium of exchange' is the secondary function of money.  This statement is incorrect. Medium of exchange is a primary function of money. Money allows for the exchange of goods and services without the need for bartering.

(B) In case of a bank, assets are loans given to the public. This statement is correct. Banks generate income from the interest charged on loans they provide.

(C) Commercial Banks are the type of institutions which are a part of the money creating system of the economy. This statement is correct. Commercial banks create money through fractional reserve banking. They can issue new loans based on a portion of their deposits, effectively increasing the money supply in circulation.

(D) Commercial Banks are said to be the 'Lender of the last resort'. : This is incorrect. The lender of last resort function is typically associated with central bank (RBI in case of India), not commercial banks.

(E) RBI sells securities in the open market to decrease the money supply. : This statement is correct. When the Reserve Bank of India (RBI) sells government securities in the open market, it removes money from the banking system.