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State five reasons why commercial banks are called deposit money banks.State five reasons why commercial banks are called deposit money banks. |
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Answer» end money for industrial, commercial and other purposes. Loans MAY be given in a variety of ways, VIZ., cash credit, overdraft facilities and the discounting of commercial papers like bills of exchange, hundis, etc.*.Commercial banks accept various types of deposits from the public especially from its clients, including saving account deposits, recurring account deposits, and fixed deposits. These deposits are returned whenever the customer DEMANDS it or aftera certain TIME period.*.Commercial banks provide loans and advances of various forms, including an overdraft facility, cash credit, bill discounting, money at call, etc. They also give DEMAND andterm loans to all types of clients against proper security. They also act as trustees for wills of their customers etc. |
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