Question

Define commercial bank. Describe any four functions of commercial bank. OR
Define central bank. Describe any four functions of the central bank.

Answer 1

Answer:

The bank which provides service to the public directly by conducting activities related to savings, credits, trade etc. Under the direction of the Central Bank are generally called commercial bank

Explanation:

The four functions of commercial bank are -

1.The commercial bank mobilises savings

2.The commercial bank offers loans

3.The commercial bank as a whole can create credit money

4.The commercial bank also perform certain miscellaneous function

Answer 2

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.