Question

Which of the following are the functions of a bank?

• A. Transferring money
• B. Collecting money through cheques, drafts, bills, etc.
• C. Regulating monetary transactions of the governemnt
• D. Conducting foreign exchange transactions

Answer 1

Answer: (A), (B), (D)

Conducting foreign exchange transactions

The different functions of banks are:

1. Accepting deposits and providing loans
2. Transferring money
3. Collecting money through cheques, drafts, bills, etc.
4. Providing safe deposit lockers
5. Bill discounting
6. Issuing letters of credit and bank guarantees
7. Conducting government transactions
8. Conducting foreign exchange transactions

However, banks do not regulate the government transactions.