Question

explain functions of bank​

Answer 1

Answer:

The function of a Bank is to collect deposits from the public and lend those deposits for the development of Agriculture, Industry, Trade and Commerce. Bank pays interest at lower rates to the depositors and receives interests on loans and advances from them at higher rates.

People also ask:

What are 3 functions of a bank?

Utility Functions of Bank

Issuing letters of credit, traveller's cheque, etc.

Undertaking safe custody of valuables, important documents, and securities by providing safe deposit vaults or lockers.

Providing customers with facilities of foreign exchange dealings.

Underwriting of shares and debentures.

Answer 2

Answer:

• A bank is a lawful organisation that accepts deposits that can be withdrawn on demand. Banks are institutions that help the public in the management of their finances, public deposit their savings in banks with the assurance to withdraw money from the deposits whenever required.

• Banks accept deposits from the general public and from the business community as well and give two assurances to the depositors –

1. Safety of deposit
2. Withdrawal of deposit, whenever needed

• Banks give interest on deposits which adds to the original deposit amount and is a great incentive to the depositor. This promotes saving habits among the public. Bank also grants loans based on deposits thereby adding to the economic development of the country and well being of the general public. With this stature, it becomes important to understand the major functions of a bank.

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