The main aim of the commercial banks is:

Social welfare

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To earn profits

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To provide services to the people

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None of these

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Solution

The correct option is A. To provide services to the people

The general role of commercial banks is to provide financial services to the general public and business, ensuring economic and social stability and sustainable growth of the economy. In this respect, credit creation is the most significant function of commercial banks.

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Similar questions

Q. Give reasons or explain the following statements:

1. Commercial banks provide agency functions to earn profits.
2. Overdraft facility is provided to current account holders.
3. Saving account deposits are usually opened by salaried class.
4. Rate of interest on fixed deposit is high.

Q. Give Reason Or Explain the following statements.
Commercial banks provide agency functions to earn profits.

Q. A banking system in which banks provide a wide variety of financial services, including both commercial and investment service is called __________.

Q. The main objective of a central bank is to earn profit.

A commercial bank is a financial institution which performs the functions of accepting deposits from the general public and giving loans for investment with the aim of earning profits.

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