Question

C Expain the primary fuction of commercial bank
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Answer 1

Answer:

Functions of Commercial Banks: - Primary functions include accepting deposits, granting loans, advances, cash, credit, overdraft and discounting of bills. - Secondary functions include issuing letter of credit, undertaking safe custody of valuables, providing consumer finance, educational loans, etc.

Answer 2

The primary fuction of a commercial bank is as follows-

• Commercial banks are primarily responsible for making deposits and lending out money to borrowers.
• Such banks take on the responsibility of ensuring a continuous cash flow in the economy by accepting deposits from the general public and lending that money to other people or organisations after charging interest.
• The banks also take care of creating credit, maintaining and managing overdrafts.