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Question
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 : ______.
Options
Advancing of loans
Credit creation
Providing overdraft facility
Transfer of funds
Solution
The primary function of a commercial bank : Acceptance of deposit, the agency function of a commercial banks : Transfer of funds.
Explanation:
- The first pair represents the relationship between a commercial bank's basic function (deposit acceptance) and its purpose.
- Similarly, in the second pair, a commercial bank's agency function involves working on behalf of customers to deliver certain services, such as financial transfers.
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