Question 13 of 37
Q.What are the primary functions of Commercial Banks ?
Puducherry TnboardTamil Nadu HSC (DGE) Commerce Board 2020Subjective· 2mImportance★★★★★
35% · 13/37 Questions
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Start your 14-day free trial to unlock the full solution →The two primary functions of a commercial bank are accepting deposits from the public and lending money (advancing loans/credit).
A commercial bank is a financial institution that deals in money. Its primary functions are the essential activities without which it would not be a bank:
1. Accepting deposits
- Current account — for businesses; withdrawals any number of times; usually no interest.
- Savings account — for the general public; encourages small savings; earns interest.
- Fixed deposit — money kept for a fixed period at a higher rate of interest.
- Recurring deposit — a fixed sum deposited every month for a set period.
2. Advancing loans and credit
- Loans and advances against securities. …
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