Question

Commercial banks are nonprofit making organisation.

• A. True
• B. False

Answer 1

The correct option is B False

False.

A commercial bank is a financial institution which accepts deposit from people by providing them a nominal rate of interest on it and offers secured loan for the purpose of consumption or investment by charging high rate of interest on it. Therefore, the difference between these two rate of interest act as an income for the commercial bank which is very high that makes the commercial banks, a profit making organisation.