Question

Explain the meaning of commercial banks and give its definition.

Answer 1

Meaning: A bank is a dealer in credit. In the broad sense of the term any institution that accepts deposits from people, who have more cash than they needs immediately, and that gives loans and thereby can create money supply may be called a bank. Commercial banks perform all these functions for earning profit.
Definition:
Prof.Sayers defines as "Commercial banks are institutions whose debts are usually referred to as 'bank deposits' and commonly accepted in final statement of other people's debts"