Which of the following condition needed for financial institution become a bank

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Accepting deposit
B	Advancing loans
C	Both
D	None of these

Explanation:

Detailed explanation-1: -(i) Accepting deposits, (ii) Advancing of loans are the two essential conditions for a financial institution to become a bank.

Detailed explanation-2: -Accepting deposits and advancing loans are the needed function which is needed for a financial institution to become a bank.

Detailed explanation-3: -Financial institutions are also known as development banks because these institutions provide long and medium-term loans for the development and growth of industry. Was this answer helpful?

Detailed explanation-4: -All banks have to perform two major primary functions namely: Accepting of deposits. Granting of loans and advances.

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