BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Banks which accept deposits from the public and lend them mainly to commerce for short periods?
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Commercial Bank
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Industrial Bank
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Agricultural Bank
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Central Bank
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Explanation:
Detailed explanation-1: -Accepting deposits from the public is the function of commercial bank.
Detailed explanation-2: -Commercial banks accepts deposits from the general public.
Detailed explanation-3: -Banks use the major portion of deposits to extend loans. These loans are then recovered with an interest. Banks charge a higher interest for credit than deposits. Hence, the amount they receive is greater than the amount that they lend.
Detailed explanation-4: -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.
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