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प्रश्न
Explain three important functions of a commercial bank.
Explain briefly the main functions that a commercial bank performs.
संक्षेप में उत्तर
उत्तर
Three Important Functions of a Commercial Bank are as follows:
- Accepting Deposits: A commercial bank accepts deposits from the public. People can deposit their cash balances as chequable or non-chequeable deposits.
- Advancing loans: A bank advances loans both for productive purposes as well as consumption purposes. Through credit creation (i.e., by creating demand deposits through loans), it contributes to money supply in the economy.
- Agency functions: Commercial banks act as an agent on behalf of their customers. Agency functions include; transfer and collection of funds, purchase and sale of shares, collection of dividends and interest, payment of bills and premia, executor of wills, etc.
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Commercial Banks: Functions
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संबंधित प्रश्न
Discuss any five advantages of having a bank account.
How do commercial banks mobilise deposits from the public?
What are Commercial banks?
Write about any three general utility functions of Commercial Bank.
Explain any two Lending Money functions of Commercial Banks.
Distinguish between:
cash credit and loan.
Demand deposits include ______ and _______.
Which of the following statements are true?
- A bank collects money from those who have surplus funds and lends this money to those who require it.
- Commercial banks do not transfer funds from one place to another.
- The principle objective of commercial banks is to earn profit.
Mention two necessary conditions for a financial institution to become a commercial bank.
What are current deposits?
