Question

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

• A. (i), (ii), (iii) and (iv)
• B. (iii), (iv), (v) and (vi)
• C. (i), (ii),(vi), (v),and (iv)
• D. (ii), (iii), (v) and (vi)

Answer 1

The correct option is C (i), (ii),(vi), (v),and (iv)

Banks perform certain secondary functions for the customers. These functions are also known as representation functions of a bank. The following points are included under-representation functions of a bank:-i) Payment of cheques and bills.ii) Providing remittance facilities.iv) Advancing clean credit.
v) Allowing overdrafts on the current account.
vi) Purchase and sale of securities.Hence, option (C) is the correct answer.