ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A commercial bank is a type of financial institution that accepts deposits, offers checking account services, makes business, personal, and mortgage loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses.

Detailed explanation-2: -What is commercial bank? According to the commercial bank definition, it is a financial institution whose purpose is to accept deposits from customers and lend out loans.

Detailed explanation-3: -A credit union is a not-for-profit financial institution that accepts deposits, make loans, and provides a wide array of other financial services and products.

Detailed explanation-4: -A commercial bank is a financial intermediary that provides liquidity by bridging sources of capital from depositors and creating credit that can be extended to borrowers. Functions of a commercial bank include deposit acceptance, credit creation, treasury and payments, and other agency and advisory services.

Detailed explanation-5: -Those that accept deposits from customers-depository institutions-include commercial banks, savings banks, and credit unions; those that don’t-nondepository institutions-include finance companies, insurance companies, and brokerage firms.