ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -True. When the trade bill is accepted by commercial banks, it is known as a commercial bill. The bank can charge a commission from this.

Detailed explanation-2: -Commercial bill is an instrument that helps companies to get advance payment for the invoices they raise after making sales to their customers. Commercial bills are issued for financing needs of the medium term. It comes into effect only after a sale has taken place.

Detailed explanation-3: -Commercial bills : A bills of exchange issued by a company (a trade bill) or accepted by a bank (a bank bill), as opposed to a Treasury bill, which is issued by the government.

Detailed explanation-4: -According to the commercial bank definition, it is a financial institution whose purpose is to accept deposits from customers and lend out loans. What is commercial bank types? Public sector banks, private sector banks, and regional rural banks are the types of commercial banks.

Detailed explanation-5: -A commercial bank is a financial institution which accepts deposits from the public and gives loans for the purposes of consumption and investment to make profit.