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प्रश्न
How is discounting of a bill of exchange a form of bank lending?
थोडक्यात उत्तर
उत्तर
- Discounting a bill of exchange is a type of bank lending in which the bank advances the value of the bill to the holder before its maturity date while deducting a discount fee (interest) for the service.
- When the bill matures, the bank takes the full amount from the drawee, thereby giving the holder a short-term loan.
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Commercial Banks: Functions
या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
संबंधित प्रश्न
Explain briefly the five agency functions of a commercial bank.
______ is a revolving credit arrangement.
Mention any two agency functions/services of a commercial bank.
Explain the term bank overdraft.
Differentiate between Savings Deposit and Current Deposit.
Which of the following is not the function of commercial bank?
Mention primary functions of commercial banks.
What are saving bank accounts?
Which of the following is a function of a commercial bank? Give a reason to support your answer:
Explain clearly three methods adopted by Commercial Banks to borrow money from the public.
