ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Accepting deposit
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Advancing loans
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Both
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None of these
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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.
Detailed explanation-5: -Dealing in Money : Bank is a financial institution which deals with other people’s money i.e. money given by depositors. Individual / Firm / Company : A bank may be a person, firm or a company. More items •28-Jan-2023