Question

Commerce project topic:-meaning of Bank,meaning of commercial bank and Central bank with difference between them, function of commercial bank​

Answer 1

Explanation:

Bank:

bank is a financial institution where customers can save or borrow money. Banks also invest money to build up their reserve of money. What they do is regulated by laws. Those laws differ in different countries. The people who work at a bank are called bank employees

commercial bank:

commercial bank is a financial institution which accepts deposits from the public and gives loans for the purposes of consumption and investment

central bank:

central bank is a financial institution given privileged control over the production and distribution of money and credit for a nation or a group of nations. In modern economies, the central bank is usually responsible for the formulation of monetary policy and the regulation of member banks.

difference between central bank and commercial banks are:

central bank is a banker's bank. It is normally part of or connected to the government of a country and manages the country's financial system. A commercial bank provides banking services to businesses, institutions and some individuals.

Both commercial banks and central banks take in deposits of money. A difference between a central bank and a commercial bank is that commercial banks receive their deposits, in the form of checking, savings and certificates of deposit, from their corporate or individual customers and deposit some of that money at their country's central bank. Central banks receive their deposit from other banks.

One of the core functions of both a central bank and a commercial bank is lending money. The difference is in what people and organizations the two types of banks will lend to.

One of the core functions of both a central bank and a commercial bank is lending money. The difference is in what people and organizations the two types of banks will lend to.Commercial banks lend out the money they take in deposits. They make personal loans, auto loans, business loans and mortgages. Occasionally, they will take in less money than they need to cover the loans they make, so their books will show a negative balance. To cover the cash shortfall, commercial banks borrow from their central banks

functions of commercial banks are:

*Accepts deposit

*Provides Loan and Advances

*Credit Cash

*Discounting bills of exchange

*Overdraft Facility