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Question
Mention primary functions of commercial banks.
Answer in Brief
Solution
There are two primary functions of the commercial banks.
- Accepting Deposits: The primary function of commercial banks is to accept deposits from the public. They accept deposits from every class and from every source.
- Advancing of Loans: The second most important function of commercial banks is to make loans and advances. Commercial banks give loans and advances to businessmen, farmers, consumers and employers against approved securities.
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Commercial Banks: Functions
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