Which of the following is not a function of commercial bank?
Solution: Issuing currency is not the function of commercial banks.
C; commercial banks cannot issue currency because that is a job only the Federal Reserve can do.
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.
Hence, Issuing of Notes is not the function of a Commercial Bank.
Operating account is NOT retail banking product.
Expert-Verified Answer
The correct option of the given statement "Which of these is NOT a function of banks:" is c) they are responsible for the conduct of monetary policy. Banks perform various functions in an economy, but one function that banks do not have is being responsible for the conduct of monetary policy.
- Accept deposits.
- Lend money.
- Process payments.
- Issue bank drafts and checks.
- Offer safety deposit boxes for items and documents.
Based on the discussion, auditing is not an operations activity of a commercial bank as this is a part of the administrative or internal control of every firm including commercial banks.
- Acceptance of deposits from the public.
- Provide demand withdrawal facility.
- Lending facility.
- Transfer of funds.
- Issue of drafts.
- Provide customers with locker facilities.
- Dealing with foreign exchange.
{"text":"The correct answer is: Provide short-term financial capital to businesses.
What are 3 functions of a bank?
A bank is a financial institution that provides various financial services, including accepting deposits, providing loans, facilitating financial transactions and providing investment options like mutual funds and stocks.
Answer and Explanation:
The price mechanism is not a function of money. It is a system for setting the prices of goods and services through the interactions between sellers and buyers. Money has three main functions, and these include store of value, medium of exchange, and unit of account.
- Accepting Deposits. The banks accept deposits from their customers, who can withdraw their funds at will. ...
- Lending Loans & Advances. A bank lends funds to needy people at a certain rate of interest. ...
- Issue of Notes/ Drafts. ...
- Credit Deposits.
Answer and Explanation:
A payday lender is not a bank. Short-term borrowing is characterized by a high interest rate where the lender provides loans to the borrower. It helps to cover immediate cash needs until we get our paycheck.
The correct answer is A: demand deposits. Even though commercial banks operate by taking customer deposits and lending the funds as loans to customers, commercial banks do not demand deposits.
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.
A commercial bank is a financial institution that provides services like accepting deposits, granting loans, bank overdrafts, offering certificates of deposits, and savings accounts to individuals and businesses.
The correct answer is Deposits.
Public Account Deposit is not accepted by commercial banks.
The correct answer is "Reserves." Reserves are not considered an asset for a bank because they are f...
How many types of functions does a commercial bank have?
The two primary characteristics of a commercial bank are lending and borrowing. The bank receives the deposits and gives money to various projects to earn interest (profit).
The two essential functions of banks in the economy are accepting deposits and granting advances or lending loans. Banks collect deposits from the public in the form of savings deposits, fixed deposits, current deposits, and recurring deposits. This function is important because people earn interest from some deposits.
Which one of the following is not a function of investment banks or systems? Enforcing membership restrictions (Investment banks handle commodities and securities, conduct foreign transactions, and are involved in acquisitions and merger. They do not handle the enforcement of membership restrictions.)
Providing Loans – One of the main functions of commercial banks is providing credit to organizations and individuals, and profit from the earned interest. Usually, banks retain a small reserve for their expenses while offering the remaining amount to customers as various types of short and long-term credits.
Retail and Commercial Banks
Today, most large banks offer deposit accounts, loans, and limited financial advice to both consumers and businesses.
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