Which of the following is not the function of commercial banks? - Infinity Learn by Sri Chaitanya (2024)

FAQs

Which of the following is not the function of the commercial bank? ›

Issuing currency is not a function of a commercial bank. The issuance of currency is the responsibility of a country's central bank, which is the monetary authority that controls the money supply and regulates the banking system.

Detailed Solution. Transfer of funds is not a primary function of commercial banks, but rather a secondary function. The primary functions of commercial banks include creating credit, lending loans to the public, and receiving deposits from the public.

Facilitating import of goods is not a primary function of a bank.

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.

A commercial bank is a kind of financial institution that carries all the operations related to deposit and withdrawal of money for the general public, providing loans for investment, and other such activities. These banks are profit-making institutions and do business only to make a profit.

Hence, Issuing of Notes is not the function of a Commercial Bank.

Which of the following functions do commercial banks NOT perform? C; commercial banks cannot issue currency because that is a job only the Federal Reserve can do.

Investment Management is NOT a commercial banking product.

Advancing loans to the public and accepting deposits from the public is not the function of the Reserve Bank of India.

Answer and Explanation:

The correct answer is: c) they are responsible for the conduct of monetary policy. Other than the central authority of the country, which is called a central bank, banks do not apply monetary policy.

Which of the following is a function of banks? ›

Banks perform the functions of accepting deposits, lending money and providing agency services.

The correct option is accepts deposits from the public. Central banks are responsible for overseeing the monetary system for a nation, along with a wide range of other responsibilities, from overseeing monetary policy to implementing specific goals such as currency stability, low inflation, and full employment.

is to provide financial services to the general public, businesses, and companies.

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.

A non-commercial bank is commonly a bank that doesn't offer ordinary retail banking services. They are sometimes called private banks, or investment banks. These banks will offer limited services to high-net-worth individuals or corporations, particularly in the world of investment or asset management.

The Reserve Bank of India is not a commercial bank because it is the central bank of India with the authority to issue currency in the country.

Which of the following functions do commercial banks NOT perform? C; commercial banks cannot issue currency because that is a job only the Federal Reserve can do. Commercial banks; however, can increase the money supply, accept deposits, and make loans.

From the following options, it is auditing that is not a part of the operation function. Auditing is the process where the financial records are verified for accuracy. It is part of internal control functions rather than operations.