Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsBANKING AND MONETARY POLICY2 Marks
Question
Explain the functions of commercial bank in short.
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Answer
$(1)$ Commercial bank is an institution which performs the functions of accepting deposits, granting loans and making investment with aim of earning profit.
It accepts deposits in four ways:
$(a)$ Savings Account $(b)$ Current Account $(c)$ Fixed Account $(d)$ Recurring Account
$(2)$ It also provides loan facilities to general public.
$(3)$ A bank provides easy payment and withdrawal facilities to its customers in the form of cheque withdrawal slips and drafts, pay order, ATM, Credit and Debit cards, Internet Banking, etc.
$(4)$ It provides credit creation function.
$(5)$ Inter-banking transactions are done.
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