1.

Define bank. Also explain the functions of commercial banks

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Answer:

  1. In other words, commercial banks are financial institutions that accept demand deposits from the general public, transfer FUNDS from the bank to another, and earn PROFIT. Commercial banks play a significantrole in fulfilling the short-term and medium- term financial requirements of industries.
  2. Primary FUNCTIONS of Commercial Banks

Accepting Deposits. Commercial banks accept deposits from people, businesses, and other entities in the form of: ...

Lending of Funds. Another important activity is lending funds to customers in the form of LOANS and advances, cash CREDIT, overdraft and discounting of bills, etc.



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