Question

State the function of commercial banks

Answer 1

The main functions of commercial banks are accepting deposits from the public and advancing them loans.

However, besides these functions there are many other functions which these banks perform. All these functions can be divided under the following heads:

1. Accepting deposits

2. Giving loans

3. Overdraft

4. Discounting of Bills of Exchange

5. Investment of Funds

6. Agency Functions

7. Miscellaneous Functions

Answer 2

1)It is a profit oriented bank
2)Advancing of loans
3)Accepting deposits
4)Overdraft facility
5)Discounting bills of exchange
6)Agency functions