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प्रश्न
Explain three important functions of a commercial bank.
Explain briefly the main functions that a commercial bank performs.
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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संबंधित प्रश्न
What are Commercial banks?
State the differences between a loan and an overdraft.
What is meant by Discounting of a Bill of Exchange?
Distinguish between:
cash credit and loan.
Explain the term bank overdraft.
Commercial Banks are the lender of the last resort.
Observe the relationship of the first pair of word and complete the second pair.
The primary function of a commercial bank : Acceptance of deposit, the agency function of a commercial banks : ______.
Overdraft facility is usually availed by ______.
Give two advantages of depositing money with commercial banks.
Explain clearly three methods adopted by Commercial Banks to borrow money from the public.
