BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A commercial bank is a bank that:
A
Gives a long term loans
B
Creates credit
C
Gives short term loans
D
All of these
Explanation: 

Detailed explanation-1: -A commercial bank is a financial institution that provides services like loans, certificates of deposits, savings bank accounts bank overdrafts, etc. to its customers. These institutions make money by lending loans to individuals and earning interest on loans.

Detailed explanation-2: -A commercial bank is a kind of financial institution which carries out all the operations related to deposit and withdrawal of money for the general public, providing loans for investment, etc. These banks are profit-making institutions and do business only to make a profit.

Detailed explanation-3: -The term “commercial bank” refers to a financial institution that accepts deposits, offers checking account services, makes various loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses.

Detailed explanation-4: -Explanation: A commercial bank’s main functions are to receive deposits and to lend money.

There is 1 question to complete.