Which of the following are included under representation functions of a bank?
(i) Payment of cheques and bills
(ii) Providing remittance facilities
(iii) Underwriting of securities
(iv) Advancing clean credit
(v) Allowing overdrafts on current account
(vi) Purchase and sale of securities.
Which of the following are included under representation functions of a bank?
(i) Payment of cheques and bills
(ii) Providing remittance facilities
(iii) Underwriting of securities
(iv) Advancing clean credit
(v) Allowing overdrafts on current account
(vi) Purchase and sale of securities.
The correct option is C (i), (ii), (iii) and (vi)
option c is correctCommittal bank acts some vital role as a representative of the client. Its Representative functions are given below are-
1.settlement of Transactions - These banks settle different transactions on behalf of the client. It pays bills as rent, interest, profit, salary etc. At the same time, it collects bills.
2.Purchasing and Selling of Shares and Securities - These banks buy sell shares and securities on behalf of the clients. Thus the trade and commerce are expanding.
3. Functions as an Underwriter - Underwriting means buying and selling of shares, securities, etc., on behalf of the clients to provide capital. Commercial banks work as the underwriter for its clients.
4. Acts as Trustee -Taking care of something is known as trusteeship. These banks work as a trustee on behalf of the clients.
5.Money Transfer - Commercial banks transfer money from one branch to another or one bank to another on behalf of the clients. Commercial banks gain a commission by transferring money.
6. An Agent of Central Bank - Commercial banks are acts as an agent of the central bank. The flow of money and credit is done by commercial banks on behalf of the central bank. Where there is no clearinghouse, commercial banks work as the clearinghouse.
7. Safe custody of Money and wealth - Commercial banks look after money and wealth of the clients. It provides the safety of wealth by providing custody, where clients can keep their valuable assets and documents.
8. Maintaining Secrecy - Commercial banks maintain the secrecy of the information of clients. By this create faith in the client.
option c is correct
1.settlement of Transactions - These banks settle different transactions on behalf of the client. It pays bills as rent, interest, profit, salary etc. At the same time, it collects bills.
2.Purchasing and Selling of Shares and Securities - These banks buy sell shares and securities on behalf of the clients. Thus the trade and commerce are expanding.
3. Functions as an Underwriter - Underwriting means buying and selling of shares, securities, etc., on behalf of the clients to provide capital. Commercial banks work as the underwriter for its clients.
4. Acts as Trustee -Taking care of something is known as trusteeship. These banks work as a trustee on behalf of the clients.
5.Money Transfer - Commercial banks transfer money from one branch to another or one bank to another on behalf of the clients. Commercial banks gain a commission by transferring money.
6. An Agent of Central Bank - Commercial banks are acts as an agent of the central bank. The flow of money and credit is done by commercial banks on behalf of the central bank. Where there is no clearinghouse, commercial banks work as the clearinghouse.
7. Safe custody of Money and wealth - Commercial banks look after money and wealth of the clients. It provides the safety of wealth by providing custody, where clients can keep their valuable assets and documents.
8. Maintaining Secrecy - Commercial banks maintain the secrecy of the information of clients. By this create faith in the client.
