Which one of the following function is not considered as the primary function of a commercial bank?
Detailed Solution
Answer: The primary functions of a commercial bank are accepting deposits and also lending funds. Deposits are savings, current, or time deposits. Also, a commercial bank lends funds to its customers in the form of loans and advances, cash credit, overdraft and discounting of bills, etc. Q2.
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.
The correct answer is to Accept deposits and provide credit. The primary functioning of the banking system is to accept deposits and provide credit.
{"text":"The correct answer is: Provide short-term financial capital to businesses.
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.
Commercial banks have the following functions: Accepting deposits, issuing loans, advances, cash, credit, overdraft, and bill discounting are all primary functions. Secondary functions include issuing letters of credit, safekeeping valuables, providing consumer financing, and educational loans.
Solution: Issuing currency is not the function of commercial banks. The main function of the Reserve Bank of India is to issue currency. A commercial bank is a financial institution that carries out all the operations regarding deposits, withdrawal of money, loans, and other activities.
Public Account Deposit is not accepted by commercial banks.
The correct option is accepts deposits from the public. Central banks are responsible for overseeing the monetary system for a nation, along with a wide range of other responsibilities, from overseeing monetary policy to implementing specific goals such as currency stability, low inflation, and full employment.
Which of the following is a primary function of money?
Medium of exchange is a primary function of money.
Financial systems enable the smooth and secure transfer of funds between individuals, businesses, and institutions. They provide payment systems, such as electronic funds transfer, credit cards, and digital wallets, which facilitate the settlement of transactions and support economic activities.
One of the primary functions of a commercial bank is accepting deposits, allowing customers to deposit and save money. One of the primary functions of a commercial bank is making advances, which allows customers to borrow money (loans, overdrafts, mortgages, credit cards).
They will challenge the business to make improvements, such as streamlining expenditure, to maximise profit and improve financial performance. Commercial finance professionals may also provide regular analysis of sales performance against targets to highlight variances and identify areas for improvement.
A bank is a financial institution that is licensed to accept checking and savings deposits and make loans. Banks also provide related services such as individual retirement accounts (IRAs), certificates of deposit (CDs), currency exchange, and safe deposit boxes.
The Fed's main duties include conducting national monetary policy, supervising and regulating banks, maintaining financial stability, and providing banking services.
- safekeeping services that protect our money.
- deposit services that let our money grow.
- loan services that allow us to borrow money.
To summarize, money has taken many forms through the ages, but money consistently has three functions: store of value, unit of account, and medium of exchange.
The 5 most important banking services are checking and savings accounts, loan and mortgage services, wealth management, providing Credit and Debit Cards, Overdraft services. You can read about the Types of Banks in India – Category and Functions of Banks in India in the given link.
The primary function refers to the main or most important purpose or role of a particular organ or system.
What are commercial bank services?
Commercial banks serve consumers and small and medium-sized businesses, providing loans, bank accounts, and credit cards. They can also offer online banking, real estate loans, and limited investment opportunities. Investment banks cater to investors, governments, and corporations.
A commercial bank is a financial institution that provides services like loans, certificates of deposits, savings bank accounts bank overdrafts, etc. to its customers. These institutions make money by lending loans to individuals and earning interest on loans.
Operating account is NOT retail banking product.
Answer and Explanation: Private loans and leases are functions of commercial banks or finance companies, but not investment banks.
The correct option is A Business.
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