Question

Mention any two functions of a commercial bank.

Answer 1

The two functions of a commercial banks are:

1:Accepting deposits: Accepting deposits from the public is the most important function of commercial bank . The deposits may be: demand deposits (Saving deposits & Current deposits) and time deposits ( fixed deposits & recurring deposits)

2:Providing loans: Commercial banks also provide loans to public & firms against suitable mortgages & at a certain rate of interest to fulfils their needs of money.