Question

Discuss the modern functions of commercial banks? support answer with suitable example.

Answer 1

Answer:

Banks accept surplus money of people and provide loans and advances to the needy persons. It is through loans and advances, banks earn profit. Loans and advances are provided through banks in the following forms :

(i) Loan,

(ii) Overdraft,

(iii) Cash credit,

(iv) Discounting of bills and exchange.