Question

Explain importent functions of commerical banks
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Answer 1

Required Answer:

☑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.

Answer 2

Answer:

Accepting Deposits – Commercial banks accept deposits from their customers in the form of saving, fixed, and current deposits. ...

Providing Loans – One of the main functions of commercial banks is providing credit to organisations and individuals, and profit from the earned interest.