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Which function enables banks to earn commission-based income?

medium Q5 of 15
Banking Awareness - Basics Of Banking & Banking Terminology
Which function enables banks to earn commission-based income?
AAgency services
BCredit creation
CAccepting deposits
DLending loans
Step-by-Step Solution

  1. Step 1: Identify commission income

    Commission is earned by acting on behalf of customers.

  2. Step 2: Match with function

    Agency services involve collecting cheques, dividends, etc.

  3. Final Answer:

    Agency services → Option A

  4. Quick Check:

    Acting as agent earns fees and commission ✅
Quick Trick: Commission income = agency work.
Common Mistakes:
  • Assuming loans generate commission.
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