Justify the following statement:The primary functions of Commercial Ba

1.	Justify the following statement:The primary functions of Commercial Banks include-Accepting deposits and Lending funds.
Answer» The main object of a commercial bank is to accept deposits and lending money to customers or account holders: To encourage the people who have surplus funds. To encourage the saving habit among the people. To give support to businessmen for opening a current account. To encourage people to make regular savings. To lend loans and advances through various modes i.e. short-term loan, medium-term loan, long term loan, overdraft facility, cash credit facility, and discounting of the bill of exchange, etc. Thus, the primary functions of Commercial Banks include-Accepting deposits and Lending funds.

Justify the following statement:The primary functions of Commercial Banks include-Accepting deposits and Lending funds.

Answer»

The main object of a commercial bank is to accept deposits and lending money to customers or account holders:

To encourage the people who have surplus funds.
To encourage the saving habit among the people.
To give support to businessmen for opening a current account.
To encourage people to make regular savings.
To lend loans and advances through various modes i.e. short-term loan, medium-term loan, long term loan, overdraft facility, cash credit facility, and discounting of the bill of exchange, etc.
Thus, the primary functions of Commercial Banks include-Accepting deposits and Lending funds.