[Solved] Which one of the following is not the function of a Commerci (2024)

FAQs

Which of the following is not a function of commercial? ›

Explanation: Issuing currency is not a function of a commercial bank. The issuance of currency is the responsibility of a country's central bank, which is the monetary authority that controls the money supply and regulates the banking system.

Solution: Issuing currency is not the function of commercial banks.

Answer: The primary functions of a commercial bank are accepting deposits and also lending funds. Deposits are savings, current, or time deposits.

The Reserve Bank of India is the central bank and does not transact directly with public. It is not a commercial bank, while the rest of the banks are. Q.

Commercially Useful Function means responsibility for the execution of a distinct element of the work of the contract, which is carried out by actually performing, managing, and supervising the work involved, evidencing the responsibilities and risks of a business owner such as negotiating the terms of (sub)contracts, ...

Answer and Explanation:

The correct answer is: c) they are responsible for the conduct of monetary policy. Other than the central authority of the country, which is called a central bank, banks do not apply monetary policy.

A non-commercial bank is commonly a bank that doesn't offer ordinary retail banking services. They are sometimes called private banks, or investment banks. These banks will offer limited services to high-net-worth individuals or corporations, particularly in the world of investment or asset management.

Which of the following functions do commercial banks NOT perform? C; commercial banks cannot issue currency because that is a job only the Federal Reserve can do. Commercial banks; however, can increase the money supply, accept deposits, and make loans.

Commercial refers to activities of commerce—business operations to earn profits. Non-commercial activity can be conducted by non-profit organizations or government agencies. In financial markets, the term is used to describe a trading activity that is hedged using derivatives contracts.

What is the main purpose of a commercial? ›

Any advertisem*nt done by a business with the purpose of promoting products and services to the public. Commercial advertisem*nts are clever, funny, or profound messages that are memorable years after they first run on a medium.

If the main goal of the organization is to earn a profit from the sale of products and services, it is a commercial organization. This type of organization distributes any income that remains after paying all business expenses to employees and investors or reinvests it into the company.

Hence, Issuing of Notes is not the function of a Commercial Bank.

Detailed Solution

Transfer of funds is not a primary function of commercial banks, but rather a secondary function. The primary functions of commercial banks include creating credit, lending loans to the public, and receiving deposits from the public.

Role. The general role of commercial banks is to provide financial services to the general public and business, ensuring economic and social stability and sustainable growth of the economy. In this respect, credit creation is the most significant function of commercial banks.

Benefits and Compensation is not a typical business function.

The characteristic of a commercial bank that is not correct is "Established to issue bank notes." A commercial bank is a financial institution that is established as a limited liability company, which means that the owners or shareholders are not personally responsible for the bank's debts or losses.

Ensuring exchange rate stability: Contrary to the statement, ensuring exchange rate stability is not a function of the World Bank. Exchange rate stability refers to the stability of the value of a country's currency relative to other currencies.