Name the institution which performs the functions of accepting deposits, granting loans and making investments, with the aim of earning profits.

Commercial Bank

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Central Bank

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Neither (a) nor (b)

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Both (a) and (b)

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Solution

The correct option is A Commercial Bank
A commercial bank is a profit based financial institution that grants loans, accepts deposits and offers other financial services such as overdraft facility and electronic transfer of funds. It provides short term loans to business and creates money.

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Q. Which of the following are the components of foreign capital?

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. Grants and loans.

2

. External commercial borrowings.

3

. Foreign direct investment.

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. Deposits from non-residents.
Select the correct answer using the code given.

Q. Fill in the blanks with appropriate alternatives given in the brackets.

1. Deposits from __________ account can be withdrawn without any notice. (saving/current/fixed/recurring)
2. __________ is a primary function of commercial banks. (Purchasing and selling securities/ Accepting deposits/ Safe deposit vault / Letter of credit)
3. Every loan creates a __________. (credit/ deposit/ profit/ loss)
4. Facility of E-banking is provided through __________ (telephone/ debit cards/ internet/ credit cards)

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Name the institution which performs the functions of accepting deposits, granting loans and making investments, with the aim of earning profits.

The correct option is A Commercial BankA commercial bank is a profit based financial institution that grants loans, accepts deposits and offers other financial services such as overdraft facility and electronic transfer of funds. It provides short term loans to business and creates money.

The correct option is A Commercial Bank
A commercial bank is a profit based financial institution that grants loans, accepts deposits and offers other financial services such as overdraft facility and electronic transfer of funds. It provides short term loans to business and creates money.